Milad / All,California has made some lofty energy and environmental goals for itself for the future.

I have done countless environmental surveys at countless gas stations in my five years in this profession, and I would never ever purchase a station due to the emense cost/ liability (when contaminants end up in someone elses ground water supply) of remediation.

The other thing to watch out for is the cost to close a station can be large because you need to do a lot of diligence including environmental diligence. 

I was stuck on the components of the offer I should consider, I’m a newbie so I wanted to make sure I was taking the right approach to on the offer.

Does local code require an environmental 1 or 2 report to be done?

This is why I always say that comparing IRRs is no way to compare offerings--instead you have to understand how those IRRs were calculated--the assumptions made, and yes, the components of NOI when calculating terminal value (not to mention exit cap rate assumptions).

I will check back in 3 to 4 weeks to see if it closes or falls out etc.The commercial buyer broker specialist has a whole network for that buyer of retail property management companies, 1031 exchange companies, vendors for reports (environmental phase one, appraisal, property condition report, ALTA level one survey), capital markets lenders, commercial retail attorneys, proprietary on and off market properties nationally.When  a buyer wants a commercial broker to evaluate properties using their knowledge for guidance they have to make an exclusive commitment to that broker.Some of my friends run listing brokerages and have meetings every week with junior agents and then do tons of listings at reduced commissions to try to make it up on volume.

For example you would never get a phase 1 environmental study on a SFH but it is likely required for financing on a commercial property.

Hiring a reputed broker or advisor might assist you in gaining access to their network.Pitch your Project, Make a convincing pitch presentation that highlights the most important components of your land development idea.

On a personal level, I have found rental properties that seem to have everything going for them (new construction w/ low operating expenses, 10- year tax abatement etc.) are being limited to 60-65% LTV as the 1.2-1.25 DSCR lenders rely on are impacted greatly by the interest rate component in their analysis.