Solving a financing issue with a contaminated property purchase

After agreeing to buy a parcel of commercial real estate, our client discovered that the property was contaminated with metals, petroleum hydrocarbons, and chlorinated solvents. Because of the contamination, our client’s lender initially refused to provide financing.

 

Socius worked with the client, environmental consultants, and government regulators to develop a proposal that included the seller’s commitment to complete a predetermined portion of the overall cleanup and a holdback of sale proceeds to fund long-term remediation. The proposal was accepted by the seller and the lender, and the transaction closed on schedule.