Buying & Selling Real Estate
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal



Real Estate Classifieds
Reviews & Feedback
Updated over 5 years ago on . Most recent reply

- BiggerPockets Money Podcast Host
- Longmont, CO
- 10,048
- Votes |
- 7,341
- Posts
New Build on former Iron Foundry. What Questions do I ask?
OK, not me but a friend is buying a new build that is being built on a former Iron Foundry site.
My environmental engineer friend said to ask for the Closure Report and get a copy of the Clean Closure Letter.
Any other advice?
Most Popular Reply
You (or better yet, have your environmental engineer friend) review the Phase 1 (and phase 2 if there is one) Environmental Site Assessment of the property. The phase 1 will identify known and possible environmental concerns given site history, database record searches, site inspection, interviews, etc. Depending upon the results of the Phase 1 ESA, a Phase 2 may been completed. A Phase 2 is more targeted and invasive, and includes actual collection and laboratory analysis of soil and/or other potentially contaminated media.
My experience with foundry sites is that you'll almost certainly have heavy metal impacts and sometimes other contamination associated with heavy industry (cleaner/solvent spills, etc.) But it is also possible that these issues have already been remediated prior to the new building being constructed. Thus your engineer suggested that you seek out a copy of the No Further Action required paperwork. Always keep in mind, of course, that such a letter applies only to what contamination was known about. There can always be areas of other contamination lurking somewhere on site.
Also check to see if there are any deed/property restrictions associated with the site. Sometimes you are allowed to leave contamination in place if its reasonable that it won't be disturbed - but they put deed restrictions in place to ensure that it does in fact remain undisturbed.