Most would agree that commercial real estate investment is risky business. Hiring a professional to conduct a Property Condition Assessment along with a Phase I Environmental Site Assessment is essential and will be required by your lender.
Environmental Professionals use information services to round up many of the easily obtainable public records required to establish you as an "Innocent Landowner" - a term you will become very familiar with should a property you own ever be determined to contain hazardous materials.
Was there a gas station located on your site in the 1920s? You better have checked into it. How about a former drycleaner? Now, what about all of the sites within a one mile radius of your property?
The EPA http://www.epa.gov has loads of information on your responsibilities as a prospective purchaser. Don't worry, the company you hire to evaluate the property along with your attorney and your lender will help you sort through all these requirements.
It is a lot of information, and finding the information is now the easy part, thanks to companies like Environmental Data Resources (EDR) http://www.edrnet.com/. You need a professional to determine what risk, if any, current and past activities on your site and sites in the study area pose to your property.
Even if the property you want to purchase has recognized environmental conditions associated with it, you will still be able to purchase while protecting yourself and making it clear who are the Responsible Parties.
Weather Damage
16 years ago
