Environmental Due Diligence!!

[Gelbu Sherpa]

Hi all TGIF ! 

I am dealing with a Rental Commercial Property which is located next door by the Gas Station ( which is no longer in service but they have auto service business ongoing  ) My lenders required 21E Massachusetts Oil and Hazardous Material Release Prevention Act reports from the property. Sellers not willing to spend any money for those test....they did a phase I ESA and the reports says:- “ Identified several RECs, primarily associated with the property adjoining the subject property to the north including auto service operations, a waste oil UST with no confirmatory closure data, and gasoline dispensers/piping without proper closure documentation. To investigate these RECs, we propose to install two sub-slab soil gas probes to collect sub-slab soil gas samples which will be analyzed for VOCs and APH. The cost will be between $3500-$4500. “

Have anyone been through a issue like this ? Does this gives you any sign of red flags ?? Should I risk that expenses and do it on my own ?

What will be the best way to deal with sellers....all your suggestions are welcome and highly appreciated.

P.S any suggestions what kind of loan is best for commercial property?

Thank you 

Gelbu