VERTEX assisted a multinational logistics real estate investment trust with evaluating environmental liability for the purchase of a portfolio consisting of 3.2 million square feet of industrial properties located in Carteret, Edison, Linden, Perth Amboy, Maspeth and Newark, New Jersey, Maspeth, New York and White Marsh, Maryland.
The project began with the completion of Phase I Environmental Site Assessments (ESA) for each site. Each property had a long industrial history with ongoing regulatory compliance and environmental concerns. Phase II Site Investigations were implemented to obtain additional information for each site and refine costs related to the environmental liabilities at each property.
VERTEX completed a detailed review of all legacy and current environmental issues that might impact worker health as well as potential vapor intrusion, ecological and potable water receptor concerns for each property. The review included an evaluation of post-remediation and site closure obligations including long-term maintenance and monitoring of engineering controls (e.g., engineered caps, landscape areas) to evaluate potential remedial funding source and financial assurance obligations. In many cases, VERTEX identified environmental concerns that were not being considered by the existing remediation consultants, that if purchased would result in increased and unknown costs for the client.
The total 30-year environmental liability was determined to be nearly $17MM, most of which was attributed to ongoing legacy issues. VERTEX ensured that any existing remediation trust funds were appropriate to address remediation costs for ongoing issues. VERTEX was retained to implement ongoing remediation for issues that were transferred to the client, most relating to long-term Remedial Action Permit monitoring.