Environmental Risk Transfer
The most secure path forward with less risk, fewer obstacles, and more options.
Get a Clear Exit Strategy
Transfer Liability & Obligations
Free Up Capital for Your Core Business
Environmental Liability Can Create Complications You Don’t Want.
Industrial plants and other commercial facilities can face a lot of environmental liability that can prevent their site from being sold or redeveloped until it is cleaned up. The process of being responsible for those environmental conditions can be a huge obstacle for soon-to-shutter or shuttered facilities and deters many potential investors.
The known and unknown risks that are associated with a property in this position can create a lot of uncertainty around how to proceed.
Where You See Liabilities,
Thanks to our years of experience in this industry, we understand the environmental cleanup process in a wide variety of contexts. From heavy manufacturing facilities and traditional commercial real estate to chemical plants and fire-powered coal plants, our team is confident assuming the risk transfer because we know we’re going to do it right the first time.
For many sellers, the Risk Liability Transfer Program goes hand-in-hand with Forsite Developments Industrial Redevelopment Division and possibly our Forsite Renewables Division. This allows you to turn what you considered a liability in an opportunity that frees you from virtually all of the potential future risk associated with the property.
The Lowest Bidder is Often the Riskiest Choice.
“Cradle to Grave” liability means that in the event that you transfer the liability to another entity, if they do a poor job in the clean up, the EPA or other regulators may “boomerang” the site back to the original owners.
This means that in the risk transfer process, who you transfer the risk to is one of the most important decisions you’ll make. Choosing the cheapest bidder is almost never the right thing to do when it comes to assumption of legacy environmental conditions.
Assuming legacy environmental conditions is not something you want to competitively bid. The lowest bidders are often lowest because of poor estimation experience, poor operations oversight, or worse, deliberately shortcuts being normal practice.
This is something no one can truly afford to get wrong.
We Understand This Process
We understand the pressure you’re under as you face shuttering your facility. But we also see the future value of the assets, land, material, and connections.
What you may see as a liability, we see as an opportunity.
Sellers shouldn’t have to struggle through managing this process on their own while facing the immense risk that getting it wrong poses. Getting this wrong leaves you and the community you serve vulnerable to future risk.
We know there’s a better way.
At Forsite Development, we have the experience, track record, and systems to help you close down in a way that poses less risk, more security, and more confidence in the future. In our years of doing this, we have had zero properties boomerang back to the original owners.
With Our Risk Transfer Program, You Can:
Remove your contingent liabilities from your balance sheet
Create real estate value for non-performing assets
Reduce your management distraction on non-core operations
Gain certainty and security with a fixed price, collateralized solution
Get a clearly defined exit strategy while transferring some or all of the site’s environmental liability
Get a focused and positive public relations message promoting the site’s reuse
Here's How toGet Started.
1. Schedule an Intake Call
On this call and the early project scoping, we will determine the best exist strategy for your facility and put together a plan and offer.
2. Make the Transaction
From here, the transaction is finalized and the money goes into an environmental escrow account pending milestones of the project.
3. Walk Away Confidently
Our zero-boomerang track record and the additional insurance we pull out on our work on your behalf means you can walk away knowing the property isn’t something you need to worry about anymore.
How does the process work?
At the point of transaction, Forsite Development assumes full responsibility from the owner or responsible party for all environmental liabilities or obligations related to the legacy environmental condition of a site. These liabilities can include environmental conditions on or emanating from the site, both known and unknown. We also execute new permits and replace any and all financial assurance obligations.
What kind of assurances can I expect that it won't likely "boomerang" back?
We provide the financial strength, environmental insurance, bonding of work, and other financial instruments as may be required to ensure long-term risk is managed. This approach frees up capital for companies that are carrying liabilities on their books.
Why does this work appeal to you?
We view our Risk Transfer approach as an opportunity to “recycle” real estate. While challenging, contaminated sites do not have to be liabilities. Forsite views these sites through a different lens and our experience enables us to create value from non-traditional approaches which can pave the way for a sites rebirth. If your company is dealing with the challenges of legacy sites, we would welcome the opportunity to explore possibilities.
Why would you want to assume the risk?
A key element of our Risk Transfer approach is to create a thoughtful redevelopment plan that is compatible with the sites condition while ensuring human health and the environment are protected. Often we are restoring sites back to their natural state by creating and monetizing Eco-Assets including conservation easements, stream and wetland mitigation, habitat restoration, and others. The key to our Risk Transfer approach is to ensure the redevelopment plan is economically and environmentally responsible thereby ensuring it will be viewed favorably by regulators, neighbors, and communities.