In a feature published by Buffalo Business First on August 9, 2013, Teresa Tramposch of CORE Environmental Consultants emphasized the risks of purchasing commercial property without environmental due diligence.
The article highlights a case in which a restaurant owner bought a former gas station site with cash, avoiding lender-required environmental testing. “I wouldn’t have done that,” Tramposch said. “You are buying the environmental problem that somebody else may have created.”
When financing is involved, banks typically require environmental reviews—especially for properties previously used as gas stations, dry cleaners, or oil and lube shops. These sites often contain legacy contaminants that could lead to costly remediation.
CORE Environmental performs Phase I and Phase II Environmental Site Assessments (ESAs). Phase I involves historical records research, while Phase II includes soil testing and contamination analysis. If contaminants are found, cleanup methods may involve soil removal or bioremediation—a process using bacteria to break down hazardous compounds.
Tramposch noted that remediation in the New York City area can range from $100,000 to $1 million depending on system complexity. “The costs can equal the value of the property and potentially sink a deal,” she said.
