Freeport, TX; Boston, MA; Xenia, OH; Buffalo, NY; Vancouver, British Columbia, Canada

Size

27 acres (total portfolio)

Environmental Issues

Underground Storage Tanks, PCB’s, asbestos, soil and groundwater contamination

Reuse

Freeport, TX – industrial
   Google Earth image, Google Maps
Boston, MA – commercial and residential
   Google Earth image, Google Maps
Xenia, OH – industrial
   Google Earth image, Google Maps
Buffalo, NY – industrial
   Google Earth image, Google Maps
Vancouver, BC, Canada – commercial and industrial
   Google Earth image, Google Maps

Project Background

BRG negotiated the acquisition of six environmentally distressed assets from RPM International, Inc., a publicly traded, Fortune 1000 international manufacturer of coatings, polymers and specialty roofing materials. Several of RPM’s subsidiaries are world leaders in specialty coatings and sealants providing products to both the industrial and consumer markets. RPM’s industrial brands include such commonly known names as Zinsser, Rust-Oleum, DAP, Varathane, Bondo and Testors. After years of mergers and acquisitions, RPM was holding several properties that it could not sell due to environmental issues. In an ongoing effort to maintain a lean balance sheet and provide strong share-holder value, RPM negotiated the sale of these surplus assets and the associated environmental liabilities to BRG.

BRG Solution

These properties include several different types of manufacturing and warehouse facilities located in very diverse industrial and commercial settings in Texas, Massachusetts, Ohio, New York and British Columbia. A comprehensive environmental insurance policy was underwritten and purchased from a large, top-rated insurance company for this acquisition, which included both environmental liability and cost-cap coverage. The policy was a negotiated pollution liability policy and included a 10-year term, policy aggregate limit of $50 million and cost-cap coverage with a self-insured retention of $550,000. BRG completed the required remediation at each property and managed the resale of the assets to individual end-users. BRG formed an acquisition partnership with a major brownfield acquisition fund for this acquisition. All properties were remediated and sold within four years of purchase.