Freemont Industrial Site – Fremont, California

Repositioning Case Study

History

In 1969, this 23-acre site in Fremont, California was developed as a concrete batch facility. The growth in the area throughout the 1990’s attracted several national development companies to the site for redevelopment. The environmental contamination onsite, however, caused several transactions to fall through.

A three way closing was crafted, allowing Opus Development Corporation to immediately purchase the property without any exposure to the environmental liability associated with the prior use of the property. The nature of the contamination did not inhibit immediate site redevelopment by Opus.

Development

Remedial Solution

The site was contaminated with both petroleum hydrocarbons and chlorinated solvents in both the soil and ground water as a result of its former use. The Alameda County Water District (ACWD) and the San Francisco Water Quality Control Board (SFWQCB) approved a closure program based on natural attenuation and several quarters of ground water monitoring.

A ten year Real Estate Pollution Policy was purchased that provided protection for third party bodily injury and property damage claims as well as future possible cleanup costs resulting from any changes in the cleanup standard mandated by the lead environmental agencies or re-openers for prior environmental liability associated with any of the environmental conditions on the property.