- $ 1,500,000
Before engaging GeoTech Environmental, Inc the client had made an offer on the parcel that had been used an agricultural property and a fertilizing plant. The site was a 20-acre parcel with two historical warehouses.
The Phase I environmental site assessment (ESA) and subsequent Phase II ESA conducted by the lender found environmental contamination from the use of pesticides and heavy metal. Because of the lack of communication by the environmental consultant and poor understanding by the Buyer’s Agent, the deal was terminated. By coincidence, the client was later introduced by the lender to GeoTech to review the ESA.
GeoTech’s review of the ESA suggested that the contamination identified at the site was not adequately assessed, clear risk and remediation goals were not established. The client decided to pursue the purchase of the property and engaged GeoTech to prepare a contract and negotiate the offer with the seller’s agent.
“CLEAN STATE” PROPERTY VALUE
The primary concern for all potentially contaminated projects is not the level of contamination nor it is the method and cost of remediation that may be required to full utilization. Rather, the foremost concern is the projected underlying real estate value of the property in a “clean state” when the under-utilized site is returned to the normal stream of commerce.
GeoTech Realty’s commercial property valuation shows systemic environmental ingenuity here:
- in evaluating the environment surrounding the deal,
- structuring a purchase agreement that outlines a win-win proposition,
- developing meaningful indemnity,
- defining exposure and then doing the DEAL.
The contract to closing took 60 days. The property was purchased at $1,500,000 was valued at $2,700,000 in less than 25 months.
What does the client say about us...
"Had I not met Neil, I would have walked away from a fantastic investment opportunity. I did not realize that a simple explanation of the due diligence and its cause and effects would make or break a great opportunity. Neil is a must when you need to interpret environmental issues and how it affects liability, and property valuation. Commercial real estate transaction can be complex especially when there is risk and liability on the table. Hire Neil. He is worth every dollar."