 |
CDC Buys NC Brownfield Property,
Plans Redevelopment
CDC has purchased and will now redevelop a 50-acre brownfield property in Greenville, NC.
This distressed property was operated as a brush manufacturing facility by multiple owners since 1964 - the
facilities have undergone multiple upgrades since that time. However market trends and environmental issues stemming from operations resulted in and abandonment and blight.
CDC will now invest significant resources into revitalizing the facilities and bringing it back to productivity after years of abandonment and decay. This site already has attractive logistical and geographic attributes which played a big role in CDC's decision to acquire and repurpose the property.
Following localized demolition and environmental cleanup, the site will have 364,000 square feet of usable industrial space, CSX rail access, 28 tractor trailer docks with trailer parking and excellent highway and interstate access. Ceiling heights inside the plant range from 17 feet to 29 feet. The warehouse carries a heavy floor load, 30 dock high doors, two drive-in doors, some mezzanine area and racking inside, and a 7.5-ton crane. Additionally, more than 20 additional acres of the site will be available for expansion.
Read more about this transaction here.
This brownfield site represents one of over 200 distressed properties that our group is working to restore.
For more information about this site or others,
please contact us.
|
In this Newsletter:
North Carolina Brownfield Purchase
ELT Featured in ACG's Middle Market Growth Magazine
2017 Conference Calendar
Currently Seeking to
Acquire & Assume
__________________________
Resources:
|
|
|
|
Complete "Walk Away" from Environmental Liabilities
If environmental liabilities are impacting your operations, transactions, or balance sheet, please contact us. ELT can assume the liability (with or without real estate purchase) and provide a robust and transferable indemnification from all environmental obligations.
- Environmental Liability Assumption
- Real Estate Buyer
- Sale Leaseback Options Available
- Guaranteed Fixed Price Remediation Solutions
- Corporate Indemnification
|
|
|
Environmental Liabilities Can Sideline the Deal: The Case for ELTs
Today's energy landscape has created new opportunities for distressed asset transactions in the energy, chemicals and industrial sectors. More often than not, however, they are accompanied by the presence of environmental liabilities.
Managing the complexities of environmental risk falls outside the competencies of most private equity groups, yet when environmental issues are involved in an asset transaction, fears and uncertainties from buyers can sideline an otherwise well-crafted deal.
When an environmentally compromised asset is part of an M&A transaction, the buy side typically wants to remove any associated environmental liability. That's because after a deal closes and ownership transfer is complete, regulatory authorities make no distinction between past and current owners of the liability, despite the fact that new ownership likely played no role in creating the problem.
Unanticipated risk factors such as unknown contaminants, regulatory reopeners and off-site liabilities that could impact public health and safety can delay or ultimately derail an otherwise good deal. Exposure to environmental risk can also negatively impact long-term corporate growth potential. The impact of holding liabilities associated with environmentally contaminated real estate go far beyond the estimated costs of cleaning them up.
One common solution to this dilemma is to transfer the liability to a third party. Using a liability buyout transaction, also known as an environmental liability transfer, or ELT, all risk of liability is removed from both buyer and the seller, clearing the way for the primary transaction to move toward closure. Our clients have seen company valuations increase by a substantial margin as environmental risk is transferred off the corporate balance sheet and real estate portfolio.
An ELT provider such as Environmental Liability Transfer Inc. underwrites and contractually assumes all environmental liabilities at a guaranteed fixed price, which is calculated by combining a variety of factors including known and the potential for unknown risks, operational costs, and the fair market value of any real estate assets that may be part of the transaction. Depending on the complexity of the site and the availability of data, the provider will also add a risk premium of 7.5 to 15%. Some providers, such as Environmental Liability Transfer Inc. will assume a broad range of liabilities, including but not limited to, at grade, above grade, below grade, on site, off site, past, present and future.
ELTs are a guaranteed fixed price solution: any and all cost overruns to the liability are the sole responsibility of the ELT provider. This allows for more accurate forecasting and peace of mind for project investors. Article Link Here ยป
|
|
|
2017 Conference Calendar
Our teams will attending the following industry conferences in 2017 - and presenting the latest and best practices in environmental liability transfers, environmental remediation, commercial real estate development, and risk management. If you will be attending any of these events, please let us know so we can connect.
|
Hosted by the Center for Creative Land Recycling (CCLR)
Albany, NY
June 7-8, 2017
|
SEIP Executive Summit 2017
Society of Environmental Professionals
Atlanta, GA
June 13-15, 2017
|
Developing Solar on Landfills & Brownfields
Chicago, IL
June 12-13, 2017 |
ABA Conference on Environmental Law - Fall 2017
Baltimore, MD
October 18-21, 2017
|
Western Power Summit
Denver, CO
October 23-25, 2017
|
RE3 Conference
Philadelphia, PA
November 1-3, 2017
|
Brownfields 2017
Pittsburgh, PA
December 5-7, 2017 |
|
|
|
|
|
|
|
|
About Our Group
CDC, ELT, and EAG comprise one of North America's fastest growing brownfield redevelopment and environmental remediation and consulting firms. Our focus is finding win-win solutions to environmentally-impacted real estate and helping clients navigate the complexities of environmental liabilities within the areas of: real estate development, environmental liability transfers, strategic redevelopment planning, risk management, and environmental remediation.
|
|
|
|
|
Acquire & Develop Real Estate
|
Transfer Environmental Risk
|
Clean to Regulatory Closure
|
|
|
|
|
|
|
|
|
|
|
|
Contact Us
For more information about anything in this newsletter or to schedule a confidential discussion regarding your environmental liabilities, please contact us.
|
|
|
|
|
|
|
|
