Project Summary Medical Office Building Acquisition
Location Fulton County, GA
Service Phase I Due Diligence, Phase II Assessment
Outcome Successful Acquisition

The equity partner of the prospective purchaser engaged Targus to conduct a Phase I Environmental Site Assessment (ESA) and additional environmental services for a planned redevelopment project. The two-acre subject property located in the Buckhead area was improved with a ten-story medical office building and two-story parking garage constructed in 1962. At the time of assessment the improvements were occupied by numerous physician practices and surrounded by the Piedmont Atlanta Hospital, numerous other medical office buildings, single-familiy residences, and commercial businesses.

Two principal environmental issues were identified: former utilization of the property as a petroleum motor fuel distribution business and a former upgradient off-site dry cleaning business. The petroleum business was documented to have operated multiple underground storage tanks from 1925 or earlier until approximately 1940. The facility configuration, together with the observed improvements, strongly indicated that the former tanks had been removed prior to construction. This indication was supported by Targus’ geophysical survey of the areas not occupied by the underground levels and foundation of the building. One of the former dry cleaning businesses that occupied the ground floor level of a south-adjoining apartment building from prior to the 1950s to later than 2000 was identified on the Dry Cleaner database for recorded use of tetrachloroethene (PCE).

Targus undertook a limited subsurface investigation that included groundwater sampling and analysis in proximity to and down-gradient of the historical adjoining-south dry cleaner and the former petroleum business. The assessment identified only low concentration detections of petroleum VOCs, polyaromatic hydrocarbon (PAH), and TPH in soil and groundwater, each substantially below applicable criteria.

Targus considered the low concentrations of petroleum well below applicable criteria to be a de minimis condition and not a recognized environmental condition. Although no asbestos exposure hazard or business environmental risk was identified, Targus advised that a comprehensive asbestos survey was still required prior to intended renovation or demolition.