Phase II Environmental Site Assessments in New Jersey: What Attorneys and Lenders Need to Know

In New Jersey commercial real estate, a Phase II Environmental Site Assessment

(ESA) It is often the step that determines whether a property deal can move forward.

For attorneys and lenders, understanding when Phase II testing is required and how it

impacts liability and loan risk is essential.

What is a Phase II ESA?

A Phase II ESA is an investigation with soil, groundwater, or vapor sampling

designed to confirm or rule out contamination identified in a Phase I ESA.

Authoritative Note: Phase II ESAs in New Jersey follow the ASTM E1903-19

standard and align with the NJDEP Site Remediation Program requirements.

When is a Phase II ESA Required in New Jersey?

Attorneys and lenders typically require a Phase II if:

 A Phase I ESA identifies a Recognized Environmental Condition (REC)

 The property has a history of industrial or commercial use

 NJDEP records indicate past spills, leaks, or underground storage tanks

Why Attorneys and Lenders Rely on Phase II Reports

 For Attorneys: Defensible documentation that protects clients from liability

under NJDEP rules.

 For Lenders: Assurance that hidden contamination won’t compromise the loan

repayment.

Oak Environmental delivers lender-ready, attorney-defensible reports that stand up in

transactions and compliance reviews.

What Happens if Contamination is Found?

If contamination is confirmed, Oak develops a Remedial Investigation and Action

Plan in line with NJDEP requirements. This provides attorneys with defensible case

protection and lenders with a clear remediation roadmap.

Protect your clients and transactions.

Contact Oak Environmental today for fast, lender-ready Phase II ESA reports that

ensure compliance and reduce liability.