PHASE II ENVIRO- Is it absolutely necessary?

[Avi Burnbaum]

Hey community- I am in contract on a gas station with an auto service garage. Plan is to keep the gas pumps flowing and repurpose the service station to two retail units (this is part of a larger STR concept with contiguous properties). The station had a phase II done in 2012 after they removed an old tank and has kept solid maintenance systems and records. I know how this will sound, but the $10K expense for phase II is a heavy due diligence expense and the bank isn't even requiring it. Am I crazy going in without the phase II?

[James Storey]

Do you have a phase 1 with a NFA letter? If not, I think I would at least do that and put the trust in the environmental experts. There could be other unseen environmental risks that the old phase 2 did not remediate or something affecting the area since 2012. There isn't really any good way to remove all the risk without a no further actions letter. In my experience, a phase 1 will cost you about $1,000-$3,000. Just my two cents and what I would do.