Case Studies / Environmental remediation should not delay the sale of your property

Environmental remediation should not delay the sale of your property

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Our Team was hired to market and facilitate the sale of a three-building industrial complex located in the City of Long Beach.
COnsideration
$2.7M
Represented
Seller
Transaction
Sale
Address
1365 Obispo Avenue, Long Beach, CA.

Challenge

The 1365 Obispo Avenue property had been identified by the LA Regional Water Quality Control Board (LARWQCB) as being a contributing source to existing ground water contamination. The Davis family lacked the funds to facilitate the cleanup and the property was not financeable due to the needed remediation.

Solution

Our team helped quantify the extent of the contamination, cost of remediation and timing to complete the cleanup as well as receive a no further action letter from the water board. The included meeting with the water board and referring reputable environmental consultants to bid the work.

Outcome

Our team secured a Buyer that agreed to put ten (10%) percent down with owner financing. Further, the Buyer agreed to pay for and oversee the remediation and closure process. The cost of the remediation was to be deducted from the principal portion of the loan. The property is to be refinanced immediately following the Buyer’s receipt of a no further action letter from the water board. We successfully closed on February 15, 2019. As of April 26, 2021 the Buyer is nearing the completion of the remediations and filing for closure.

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