Underground Tanks & Auto Body Shop Possible Contamination

[mreilly23]

The Park that I’m in negotiation on is a 40 site park; ancillary businesses consist of an auto body shop and a single family rental. – Both Currently rented to long-term tenants.

The seller informed me she has never gotten an environmental report done in the park and the previous owner did not either. The seller said they do everything there but nothing is disposed of there. She said at one time it used to be a filling station the underground takes were taken out.

What would you all do? Is this a deal killer?

Thanks in advance!
Michael

[jhutson]

Any real estate with underground storage tanks (“USTs”) will likely have red flags as part of a Phase 1 Environmental Assessment and require further investigation as part of a Phase 2, which requires at least limited boring to precisely examine the extent of contamination in a given area. These are not cheap, and deal killer for most, unless the Seller will cover it.

For the record: I have performed one Phase 2 ESA, at my cost, and closed based on the results (e.g. the results were below legal limits for remediation), which is atypical.

Good luck!

[mreilly23]

Thank you, Tony really appreciate it!

[mreilly23]

Thank you, Jhuston.
Appreciate you taking the time to provide some feedback on our concerns with the USTs. I have heard Phase 2 cleanup remediation of contamination in a park can be COSTLY.