I'm looking at this property in Philly which has 2 gas stations and a dry cleaner all within a block radius. It's an apartment building over 5 units. Will the lender require that I get an environmental phase 1 and maybe phase 2 study?
The lender should due to possible runoff contamination.
Even if they wouldn't you should get one to protect your down payment capital and property investment. You can ask owner of 5 unit apartments if they have a recent phase one within last 6 months. Sometimes lenders will allow use of one it it's recent instead of ordering a new one.
No legal advice.
Hell yeah - Phase 2. Is it an absolutely fabulous deal...?
Ben, it's an okay deal. I wouldn't say fabulous. It's not worth spending the money on those 2 studies, then possibly having to fix a soil contamination problem.
Joel, it's a bank owned property, so I doubt if they would have any info. Thanks anyway
Some lenders will require and others will not, depends on how hip they are to environmental regs and surprisingly, some are not overly so.
If you are really considering, I would do as Joel recommended and look for other property owners nearby (closer the better) and see if they have had any studies done and if they would allow you to have a copy. Also, you can check with your county or city to see if there have been any publicly paid studies done that you can have access to. If it was paid with tax dollars, you can see it.
Last, call local env. companies to see if they have done a previous study for this property. Though you would technically need your own Phase I, it might indicate whether a Phase II was required and if it was fairly recent the company may offer you a discount.
Thanks for the advice, @Marshall Downs . I'll do that
Hey guys, one more question. How close would a gas station have to be to a property to create a soil contamination problem that would be discovered in an environmental study?
Chris, this is a "depends" answer as well. Is it down slope from your target property? If so, then it would need to be fairly close...probably within 100 yards. If the gas station is up slope, then it could be further and still be needed.
Thanks Mike. I think the ground is pretty level.
Call a phase one engineer and get them on the phone. Last time I checked a phone call is free. The engineers will often give some good info on the phone in hopes of landing an order for a report in the near future.
Good ideal Joel, thank you. I can order the study, or the lender orders it?
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