Project Summary Medical Office Building Acquisition
Location Sarasota, FL
Service Phase I Due Diligence
Outcome Successful Acquisition

The equity partner of the prospective purchaser engaged Targus to conduct an environmental site assessment (Phase I ESA and additional environmental services) of a 150,000 square foot, eight-story medical office building located in Sarasota, Florida. The improvements were constructed in 1990 on a one-acre parcel adjoined by other medical office buildings, healthcare facilities, and a regional hospital.

The principal environmental issue was the unintended release of approximately 400 gallons of diesel fuel from a 2,000-gallon aboveground storage tank (AST) system supplying an electrical genset utilized for emergency backup power. Available regulatory documents retrieved and reviewed documented that the majority of the petroleum discharged to the ground surface entered a nearby storm drain and the municipal separate stormwater system.

Extensive assessment of soil, soil-vapor, and groundwater was conducted to evaluate the potential presence of residual contamination at the subject property. While several metals, volatile organic compounds (VOCs), and polycyclic aromatic hydrocarbons (PAHs) were detected in both soil and groundwater, they did not exceed their respective Florida Department of Environmental Protection (FDEP) Soil Cleanup Target Levels (SCTLs) and/ or Groundwater Cleanup Target Levels (GCTLs), and a no further action (NFA) letter was issued in August 2011. The prior operator resolved the matter of the release to stormwater with the local stormwater utility.

Based on the analytical results and the NFA determination, Targus considered the presence of residual petroleum from the 400-gallon diesel spill a historical recognized environmental condition and not a recognized environmental condition or business environmental risk. Separately, the Phase I ESA was followed by recommendations for post-closing preparation and implementation of an appropriate spill prevention and control countermeasures (SPCC) plan.