Battery Manufacturing Facility Divestiture
Context: Real Estate Remediation
A manufacturing company sought to divest a valuable, 9-acre industrial property located in southern California. The 50-year-old, obsolete manufacturing buildings were of little value and in need of expensive retrofitting. However, the land offered the local government an opportunity to assist neighboring businesses to expand their operations locally rather than relocate.
TerraSure Development, LLC entered into a Guaranteed Fixed-Price Remediation (GFPR) agreement with the seller and the local redevelopment authority to decontaminate and demolish the 70,000 square feet of structures and remediate the land.
Our firm’s GFPR contract allowed the property sale to begin prior to active remediation, provided up-front regulatory protections and indemnifications for environmental liability, and guaranteed subsequent public funding for site redevelopment. The seller added considerable value to the property and optimized the potential net return on the sale.