If Dave is buying an old gas station to convert it into a flower shop, what assessment is likely required by his lender?

When purchasing a property like an old gas station, the lender typically requires a Phase 1 environmental assessment to evaluate the potential for contamination. Gas stations are often associated with hazardous materials due to the storage and dispensing of fuel, which can lead to soil and groundwater contamination.

A Phase 1 environmental assessment involves a thorough review of the property’s history and current conditions, looking into past uses, surrounding properties, and any signs of environmental issues. This assessment helps identify any potential environmental liabilities that could impact the property value or pose legal risks to the lender and the buyer. Recognizing these concerns early is crucial before committing to the renovation into a flower shop.