BROWNFIELDS, DEFINED Cleanup costs and lender worries can slow the redevelopment of contaminated waste sites, but commercial projects have played a key role in returning thousands of acres of once-polluted property to productive use. We’ve all driven through towns where properties, once bustling with activity, now sit vacant or underutilized because they are contaminated with […]
For years environmental due diligence has focused primarily on adverse impacts from contaminants like volatile and semi-organic compounds, metals, asbestos, lead, etc. However, in recent years a new threat to certain real estate transactions has emerged. Emerging contaminants are synthetic or naturally occurring chemicals that are not commonly monitored in the environment but have the […]
Buyers often include in purchase agreements an environmental inspection contingency since contamination or hazardous substances on the property can affect the value of the real estate. This allows the buyer to terminate or renegotiate the contract if the environmental conditions are not acceptable. Lenders typically make commitment letters contingent on the acceptability of environmental findings […]
Environmental due diligence for real estate transactions can be costly, time consuming, and confusing. One of the primary reasons entities conduct Phase I Environmental Site Assessments (PESAs) is to obtain protection from costly Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) liability. However, CERCLA contains an exclusion for lenders that hold an indicia of ownership […]
Urban infill. It’s the trend these days. As older buildings are getting demolished or renovated, there is heightened attention on asbestos-containing building materials. Asbestos was commonly used in building construction until the 1970s, when certain asbestos-containing building materials were banned by the EPA. It is estimated that 35 million homes, schools and businesses still contain […]