Warehouse and Distribution Transaction Overview

Date of Transaction	August 1996
Transaction Size	$15.6 Million
Remediation, Insurance and Redevelopment	$3.3 Million
Type of Asset	Industrial Warehouse
Gross Rentable Area	622,575 square feet
Excess Raw-acreage	26.5-acres
Location	City of Industry, CA

Transaction Background

An acquisition of a 622,575 square feet former manufacturing facility for $12.3 million, plus the assumption of environmental liability from Carrier Corp. The property was converted into a multi-tenant warehouse and distribution facility. In addition, the property included 26.5-acres of excess land that were available for subdivision.

Environmental

The property had significant groundwater contamination, including PCE's and other solvents used in prior operations by its former owner. Preliminary remediation of the asset was begun by Carrier and assumed by our client following its acquisition. Concurrently with the closing of the transaction, our client purchased property transfer liability environmental insurance.

Transaction Highlights

• Through successful remediation and the application of environmental insurance, our client was able to sell this asset to a large industrial REIT, which had historically not pursued assets with any levels of contamination.