Phase I / Environmental

Purchasing 2 parks from same owner. Using same local bank that has existing facilities on properties. Bank says they hire a “3rd party” to do “a number of things” but that they don’t typically do a Phase I. Can research local records and are pretty comfortable with property since they’ve financed it for years and know it wasn’t previous a wasteland or dumping ground etc.

Question is - I would assume I should just bite the bullet and do my own Phase I on each park to protect myself given it’s a recourse loan, correct? Would be nice to save the expense but probably not a corner worth cutting is my guess.

Irrespective of recourse or non-recourse or if the bank needs it or not, it is inane to skip Phase 1. It is one of the huge reassurances that there are no skeletons in the closet.

Just do Phase 1 without much thinking about it. However, only order Phase 1 after the major due diligence items have passed and not before that.

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