What would you look out for in an Old Gas Station?
Currently looking at an old gas station. Been running as an auto body shop for many years now, the rental yield is good.

I've been told the underground storage tanks have been filled, what further information would you look for?

If I proceed I'd get an environmental consultant to do a sweep of the soil to check for contamination. Is there anything else I should check for?

Plan would be to hold it a few years and possibly redevelop if tenancy runs out and becomes hard to find a new tenant.
[{"id": "gkoh3tz", "text": "What state? Different states have different rules on tanks? Was it owned by a large company? Environmental indemnity run with the site?", "replies": [{"id": "gkoibgl", "text": "Texas. Hard to tell, couldn't find much information about previous use as a gas station.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gkohrf8", "text": "leakage, environment.... The tanks need to be replaced so many years etc.", "replies": [], "depth": 1}, {"id": "gkoi9od", "text": "&gt; I've been told the underground storage tanks have been filled, what further information would you look for? \n\nIf it's in a progressive state, or if you ever want to redevelop into housing or new use I bet they will need to be pulled. Filled tanks does not mean clean tanks.\n\nI used to do this sort of work as a geologist.", "replies": [], "depth": 1}, {"id": "gkolnk5", "text": "Get an environment report - the bank will require it if you\u2019re getting a loan or ever plan too. The tanks should have been removed, filled gives me concern because if you want to redevelop then you\u2019ll likely need to have them pulled. I wouldn\u2019t be too concerned with difficulty in replacing an automotive tenant.", "replies": [], "depth": 1}, {"id": "gkoq8h7", "text": "When I was looking at gas stations tanks and environmental issues was one of the biggest things to watch out for. \n\nLeaking tanks would be a headache. Water intrusion into the tanks also if they were in use.\n\n Redeveloping could require you to pull tanks out and mitigate any environmental issues.\n\nYour lender, if any, would tell you what they want before approving your loan", "replies": [], "depth": 1}, {"id": "gkoz58t", "text": "The ones I\u2019ve seen the buyer makes the seller remove the tanks prior to closing. Probably a lender requirement. But I\u2019m not in Texas.", "replies": [], "depth": 1}, {"id": "gkozdaa", "text": "The environmental report you want is called Phase I. It should give a full history of the site and give you an idea of who operated the tanks, when, if there were any \"releases\" of petrocarbins and the status. It should cost a couple grand. \n\nIf there were old \"releases\" you're looking for a No Further Action letter or something similar depending on the state. Don't be scared off by residual contamination if there is an NFA letter. Usually there are deed restrictions associated with this... No groundwater use, no residential use, no childcare facilities, etc. Sometimes a  \"vapor barrier\" is required, ie solid unbroken asphalt. You'll want to understand these restrictions if any and who is responsible for maintaining them (current owner or party responsible for the release). \n\nIf there is no history of \"releases\", that doesn't mean there isn't contamination, it just means no one has looked for it (or found it) in order to report it to the state.  This is a fairly likely scenario and one where digging around may cause some fairly expensive liability for you or the current owner. \n\nIf the Phase I comes back with more questions than answers, you can order a Phase II which involves sample drilling to look for contamination. The seller probably won't want you to do this. (see above) \n\nIf the tank location is unknown, you can do a ground penetrating radar scan to find them. You'll want to know the exact location if you plan to redevelop one day. \n\nRemoving the tanks can be expensive as well (solid concrete or rocks encased in steel underground). \n\nTanks closed in place is usually a \"let sleeping dogs lie\" situation and poking around can open you or the current owner up to expensive liability.  This situation scares off a lot of buyers so beware that the property will be more difficult to sell in the future. \n\n\nSource: work in the c-store industry.", "replies": [{"id": "gkpo7vr", "text": "&gt; If the Phase I comes back with more questions than answers, you can order a Phase II which involves sample drilling to look for contamination. The seller probably won't want you to do this. (see above)\n\nOP, take special note of this.  The Phase I is not a \"sweep of the soil to check for contamination\" that you're describing.", "replies": [{"id": "gkq26mm", "text": "Yes noted. Thank you", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gkpbumz", "text": "Here you go buddy https://www.tceq.texas.gov/assets/public/comm_exec/pubs/rg/rg-475a.pdf", "replies": [], "depth": 1}, {"id": "gkpdhcv", "text": "Speak with three people who have developed on these sites recently. There are so many potential snags with environmental issues.", "replies": [], "depth": 1}, {"id": "gkpexvx", "text": "Thank you all for your comments, this is all extremely helpful.", "replies": [], "depth": 1}, {"id": "gkpnfyh", "text": "I'm just going to chime in and say that on gas stations, I always tell my clients not to use their friendly Enviro group or the bank's friendly enviro group. Hire the expensive overly thorough company.", "replies": [], "depth": 1}, {"id": "gkqbyzt", "text": "No gas.", "replies": [], "depth": 1}, {"id": "gl1m4hs", "text": "Lust. Leaking underground storage tanks.", "replies": [], "depth": 1}, {"id": "gmlt0b6", "text": "Pursue environmental testing (for soil contamination) and a due diligence report for overall review of the site. Hire an Architect.", "replies": [], "depth": 1}]