Transactional Issues

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Before the 2010s, many real estate deals closed without the mere mention of per- and polyfluoroalkyl substances (PFAS) as part of negotiations or in diligence.  Leap forward a decade to 2022 and diligence questions relating to the presence of PFAS on real estate are essentially market, especially for industrial and some commercial properties.  The paradigm shift cannot be attributed solely to one force; instead, a culmination of regulatory, statutory, judicial, and transactional considerations have elevated PFAS to an issue that could seriously impede or even kill a deal. 

Whether involved as a seller, buyer, lender, or another interested party concerned about the liabilities, there are several key considerations, among others, that parties to real estate transactions should be aware of in 2022.Continue Reading PFAS and Real Estate Transactions: Key Considerations in 2022

In these unprecedented days, companies may be looking to realign market position through the acquisition of assets or by adding to strategic investments. Frankly, there may be some good deals out there with interests rates at historic lows – return on investment calculations that were unfavorable under higher cap rates are now quite attractive. However, the old maxim of caveat emptor still applies even in these low interest rate times, particularly when purchasing a distressed asset with potential environmental concerns.

This is the first in a series of posts regarding what to look for in these deals.Continue Reading Environmental red flags when considering the purchase of distressed assets

In these unprecedented days, companies may be looking to realign market position through disposition of assets or by changing strategic investments. Frankly, financially strained companies may be giving a lot of thought to increasing cash flow. One way to increase cash flow is through the sale of strategic assets. And every seller wants to maximize the cash influx as part of the sale, that is, the sale price, in addition to a quick path to closing.

One of the ways to increase sale price and assure a quick path to closing in an asset sale is to make sure certain environmental issues are presented in the data room in such a way as to give prospective buyers and financiers comfort.Continue Reading Looking ahead: Environmental considerations when preparing for asset sales in a post-Covid-19 world