Service Station Redevelopment With USTs already Removed. Worthy Investment?
Looking to redevelop a previous Texaco service station, built 1965, USTs removal certified by the state in 1992. 5 USTs 4 gas/diesel/heating oil were fiberglass reinforced and 1 for used oil was asphalt coated or bare steel. At the time the soil samples didn’t not require any action, no detailed information on this.

Since removal of USTs property had been used for automotive repair and detailing. My concern for this property is that if there was automotive repair there could still be soil contamination for redevelopment. I plan on doing a phase 1 which I expect there to be a need for a phase 2. 

What are people with experience in service garage redevelopment thoughts? Is this a worthy risk to take? Should I avoid brownfields all together? Or just start with a phase 1 and go from there?

My background:
I’m a veterinarian looking to do a start up and found this location that would be perfect. I’m not an experienced developer or RE investor so any of y’all’s input would be amazing. 

Thanks in advance.
[{"id": "gmrnqd5", "text": "&gt; Since removal of USTs property had been used for automotive repair and detailing. \n\nAuto repair will auto-trigger a phase II. Might as well roll it all in from the get-go. Will be cheaper to do both at once. \n\n&gt; My background: I\u2019m a veterinarian looking to do a start up and found  this location that would be perfect. I\u2019m not an experienced developer or  RE investor so any of y\u2019all\u2019s input would be amazing. \n\nHow much cash do you have laying around? Is your plan to flatten it? Any asbestos? Did they pull the lines?\n\n&amp;#x200B;\n\nI used to do a lot of this sort of work as a geologist.", "replies": [{"id": "gmrqicl", "text": "That\u2019s great advice on just doing it from the beginning to save some cost.\n\nNot sure about the pipes, I think this is what you mean by lines. On the certification report it says the pipes were bare or galvanized steel. I\u2019d hope the fact they were listed means they were removed as well but nothing I can find that says specifically. \n\n\u201cLaying around\u201d is really my life savings ready to be invested in my future. 200k I\u2019m willing to commit to the project. Est loan 1.5-1.8ml. My current analysis allows for RE, Redevelopment, Business startup and 1-2 year operation costs. Not much wiggle room for major environmental clean up as I\u2019ve read can be 100\u2019s of thousands.", "replies": [{"id": "gmrqu15", "text": "&gt; Not much wiggle room for major environmental clean up as I\u2019ve read can be 100\u2019s of thousands. \n\nIf the tanks are pulled, that's usually the worst of it. \n\nIs the seller not providing a phase II or splitting the cost? Is it buyer beware?\n\nYour lender will want a clean phase II for most loans.", "replies": [{"id": "gmrscof", "text": "I told the lender I\u2019d submit an LOI if the sellers were willing to pay for the ESA hoping they\u2019d come back with splitting it. Offered to split phase 1, will go back with splitting both. \n\nMy agent has been doing a shit job, all of this I\u2019ve done on my own. I\u2019m having a call with him tomorrow and if he hasn\u2019t even found out the tanks have been pulled I\u2019m terminating our relationship and finding another that\u2019s willing to work for/with me. \n\nThe property was the grandparents then passed down. Documents are scarce and I always thought properties were buyer beware lol hence the need for ESA for lenders. \n\nYou definitely make me feel better with the tanks being the worst of it. Makes me feel better about spending 5-10k on phase 1&amp;2 to get a loan and move forward if it all looks good.\n\nThanks for the feedback.", "replies": [{"id": "gmrv4op", "text": "Yeah a shitty phase I is like 1-2k, that's not really saying much, TBH. \n\nIf they want to play the game \"if the phase I finds anything, will split the phase II\", then sure. But I would find a firm that does both. If I was bidding the job I would want some sub slab vapor pins and 1-2 boring. 1 day worth of work.", "replies": [{"id": "gmrz72q", "text": "Good to know. Gonna ask my lender on some recommendations for firms to do the ESA. I\u2019ve read sometimes lenders only trust certain people/firms.", "replies": [{"id": "gms04o8", "text": "Would be good if they had a short list. Would not look for a national firm (AECOM's of the world).", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gms3otq", "text": "I wouldn\u2019t do anything without a phase 1, or 2 if required, but this can be completed as part of DD prior to going hard. If it\u2019s not a competitive process, making the Seller pay for this prior to LOI is an avenue worth pursuing as it sounds you are. Closing shouldn\u2019t happen without entitlements to minimize your risk.\n\nMy initial question however is why do you want to take on development risk when you\u2019re also considering a new veterinarian start-up? Seems like leasing space would make much more sense. A new business is already substantial risk, adding development to this venture, especially when not an experienced developer, is elevating this risk considerably.", "replies": [{"id": "gms7tvu", "text": "I already have income via mobile surgery and would add to that by offering general practice services. For me it\u2019s a greater risk reward scenario. I also have name recognition in the community and hope to fill up clientele quickly due to that and my strong surgical skills. \n\nYou\u2019re right though with the risk. However if successful I\u2019d rather rent from myself. Eventual goal is to sell the business and rent the property. Rinse and repeat the process 2x then retire.", "replies": [{"id": "gms97i1", "text": "Sounds like you have a good handle on the risk so wish you the best. Hiring good consultants will be very important to help you navigate this process. Good luck on the new venture!", "replies": [{"id": "gms9iju", "text": "Thanks! It sounds great in my head and on paper so just need to make this dream a reality!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gms5osw", "text": "What state?  As with anything, the bigger the pain in the ass, the bigger the discount.", "replies": [{"id": "gms7ean", "text": "Maryland. I was hoping that too by coming in with a low ball offer since it\u2019s a brownfield.", "replies": [{"id": "gms7yqs", "text": "Find a lender and clear their stips; they'll only lend on props that they're not worried about liabilities on.", "replies": [{"id": "gms85f8", "text": "Yeah phase 1 &amp; likely 2 since it\u2019s a previous auto shop. Will speak with the lender financing the property purchase this week.", "replies": [{"id": "gmsa3h1", "text": "Ask for an approval with stips.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gmsaj9n", "text": "I knew someone who spent 300k on cleanup/testing etc of an old gas station where the tanks were removed several years earlier. Development delay was about a year \n\nJurisdiction matters too\n\nGet a veteran commercial real estate sponsor or partner. Did I mention the costs for engineers, attorneys, testing, certification, increased cost of capital, and borrowing for an extra year? Or the payout for the investor brought in to cover the shortfalls from above?\n\nEtc", "replies": [{"id": "gmsbf0d", "text": "Woof. This is the smack of reality I needed to read, appreciated. If the phase 2 has any wiff of stink I\u2019ll cut my losses and keep looking.", "replies": [], "depth": 2}], "depth": 1}]