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Serenely Dangerous: An Architect’s Adventure in Accidental Eco-Mayhem

Published December 16, 2024

For architects, the right space can make all the difference in elevating their craft and expanding their practice. Recently, an architect client of mine found himself in exactly this position. After a lengthy search, he discovered a property that seemed perfect—it checked all the boxes. However, as this story illustrates, even dream properties can hide significant risks.

The Dream Property

The property had everything my client was looking for. It was conveniently located near his home, boasted stunning views, and offered ample space for his expanding firm. The site also had room to grow, accommodating his future ambitions. For an architect with a growing practice, it felt like the ideal place to build his dream workshop.

Despite his enthusiasm, my client was savvy enough to know that there could be hidden challenges. Though he had some experience dealing with property data from his own clients, he recognized the importance of reliable, expert analysis. That’s when he called me.

Uncovering the Property’s Past

I conducted a preliminary review, focusing on existing liens and regulatory activities. While this wasn’t a full Phase 1 Environmental Site Assessment, it provided enough information to flag potential issues. Historical records revealed a troubling history: the property had been home to a series of auto repair and auto body shops dating back to the 1940s.

This raised a red flag. Properties with a history of auto-related operations often have a legacy of environmental contamination. Specifically, volatile organic chemicals (VOCs) like trichloroethylene (TCE) were commonly used in such businesses for cleaning auto parts. These chemicals were frequently disposed of improperly. Often they were dumped directly onto the ground or out the back door, rather than being properly disposed of in permitted hazardous waste sites.

The Risks of Moving Forward

I explained the potential consequences to my client. Buying the property could expose him to immediate legal and financial liabilities. Contamination from VOCs like TCE can linger in the soil and groundwater for decades, posing long term health and environmental hazards. Neighbors or regulatory agencies could hold him responsible for cleanup, even though he didn’t cause the contamination.

While there was a possibility of locating old Commercial General Liability (CGL) insurance policies without pollution exclusion clauses, this was far from a guaranteed solution. My client would likely need a lawyer on standby—not an ideal scenario for someone focused on growing a business.

Key Takeaways

1. Beauty Is Not Enough: A property may appear perfect, but it’s essential to look beyond the surface. The right location and features won’t protect you from environmental liabilities.

2. Do Your Homework: Reviewing existing data is a critical step in property evaluation. Many state and federal environmental databases are available online and provide valuable insights.

3. Know When to Seek Help: Recognizing your limitations and consulting experts can save you from costly mistakes. Whether it’s a preliminary review or a full environmental assessment, professional guidance is invaluable.

4. Be Prepared for Hidden Costs: Environmental contamination can lead to significant legal and financial challenges. Understanding these risks upfront allows you to make informed decisions.

Final Thoughts

In real estate, due diligence is your greatest ally. As my client learned, there’s no substitute for thoroughly examining a property’s history and environmental context. By taking the time to uncover hidden risks, you can protect yourself from unexpected liabilities and focus on achieving your vision.

Questions or comments? …contact me.