Chemical Industry Portfolio Transaction Overview

Date of Transaction	June 1999
Transaction Size	$15.1 Million
Estimated Remediation and Insurance Costs	$2.7 Million
Type of Assets	Industrial Portfolio
Gross Rentable Area	268,700 square feet
Properties - Total-acreage	43.6-acres + 12 residential lots
Location	San Francisco, CA Brunswick, GA Anchorage, AK Houston, TX

Transaction Background

An acquisition of a portfolio of seven real estate assets plus the assumption of environmental liability in June 1999 following the acquisition of the O'Brien Corporation ("O'Brien"), a former paint manufacturer, by ICI Glidden Paints ("ICI").

Environmental

Previous releases of contaminants had occurred at the South San Francisco and Brunswick properties. The South San Francisco site contained lead in both the soil and groundwater, and the Brunswick site contained lead impacted soils. The Houston and Anchorage properties had no known environmental contamination. Total estimated remediation and insurance costs to be incurred were approximately $2.7 million. Concurrently with the closing of the transaction, our client purchased remediation stop loss and property transfer liability environmental insurance to cap environmental costs.

Transaction Highlights

• The San Francisco properties were attractively located in South San Francisco, just north of the airport. This geographic area had experienced very strong growth in recent years.
  

Developments after Acquisition

• The remediation plan for the Brunswick property is currently being completed and the Houston property is currently being marketed for sale.