Update: I paid for a full environmental report on a warehouse site

I was about to close on a small warehouse in Tampa last month. The seller's Phase I looked fine, but I spent an extra $8,500 for a more detailed Phase II. It found soil contamination from a dry cleaner that used to be next door. That killed the deal and saved me from a huge cleanup bill. Has anyone else had a Phase II report uncover a dealbreaker like that?

3 comments

3 Comments

fiona_webb1mo ago

Honestly, a Phase I can't really "look fine" if it missed the neighboring dry cleaner.

victor_butler501mo ago

Used to think a clean Phase I was enough if the property itself checked out. Then I saw a deal fall apart because the report didn't mention the auto shop next door that had been dumping solvents for years. They found the plume under the property line later. Now I know you have to look at the whole block, not just the lot lines. Missing something like a dry cleaner means they didn't do the basic work.

hugog431mo ago

Wait, did the report actually look at the surrounding properties or did they just check the site's own records? Sounds like they mailed it in if the dry cleaner didn't even get a mention.