Learn how choosing the right buyer for your contaminated property can result in a win-win business deal.
If you have a contaminated property for sale, you know how difficult it can be to find an interested and qualified buyer. However, in recent years, a new group of investors and developers have been specifically looking at contaminated sites to turn a profit. Selling to these types of buyers is beneficial because you can rid yourself of a non-producing asset that you are likely wasting resources on.
However, it’s important that you don’t sell to the first party that shows interest. The buyers you want to look for are those who have experience flipping these properties and successfully redeveloping them. Choosing a redeveloper with a good track record is important, as you don’t want the property’s liability to come back to haunt you.
You also need to be sure that the property will be remediated successfully. If remediation is not completed, environmental agencies can track down previous owners to finish an aborted clean-up. The best way to ensure that this does not happen to you is by making sure that your buyer has a comprehensive plan for cleaning and redeveloping the property.
Finally, you’ll want to ensure that the buyer is not looking to sue others who might hold liability for the property. According to certain environmental statutes, companies that remediate a location have the right to sue previous owners or companies that contaminated the site. If your buyer sues another party, you may also get roped into the lawsuit. So, if you want to avoid litigation, take steps to ensure that the buyer has no intentions to sue.
By looking for these characteristics in a buyer, you can ensure that the sale of your contaminated property is a profitable one. Do you need further assistance with your industrial or commercial real estate needs? If so, don’t hesitate to contact us at California Commercial Realty Advisors, Inc. We are ready to work with you today.
Leave A Comment