Phoenix Environmental, LLC

Old gas stations are high risk properties and they often require a robust investigation. Getting a Phase 1 Environmental Site Assessment (ESA) is a good place to start. This is a due diligence report that determines if there are Recognized Environmental Conditions (RECs) present. RECs are red flags. RECs indicate contamination is likely present on a property. We would also suggest a file review of the former tank. If the site looks “clean” after these activities, you may proceed a bit more confidently with the purchase. However, if questions remain, a Phase 2 ESA may be needed. A Phase 2 ESA is an investigation of the subsurface using a drill rig and lab analysis of soil and groundwater. Lastly, if the site was a gas station for a long time, a geophysical survey may be prudent.

If you are looking at buying commercial real estate, we recommend conducting some form of environmental due diligence (EDD), regardless of the size of the property or purchase price. EDD is typically not conducted on a single-family, residential property in a neighborhood; however, if you are buying a plot of land outside of a subdivision, it may be recommended. Some examples of EDD assessments include: Records Search and Risk Assessment, a Transaction Screen, a Limited Environmental Review and an ASTM Phase I Environmental Site Assessment (ESA). Properties that have a high environmental risk include: gas stations, dry cleaners, auto repair shops, shooting ranges, furniture refinishers, golf courses, landfills, print shops, marinas, airports, and wide a variety of other commercial and industrial properties. This is not a complete list. Feel free to contact us to discuss your issue further. https://www.phoenixel.com/contact Best of luck!

Hey Heather, Great question! A Phase I Environmental Site Assessment (ESA) is not required on every commercial real estate transaction. It depends on the requirements of your lender and the loan amount. Some cash buyers purchase properties without any thought to the potential for environmental issues. That is not wise. The property may look good on the surface, but contamination issues underground often have no visible signs. That said, not every site is contaminated. Getting some environmental due diligence (e.g., transaction screen, records search and risk assessment or a limited environmental review, “mini-Phase I) may be sufficient, and less costly than a full ASTM Phase I ESA. It depends on your risk tolerance and understanding of the property. The more you know the better. Feel free to give us a call to discuss your site. We don't charge for phone calls like other environmental consultants!