Mount Kisco Shopping Center
After Admiral had successfully leased up the subject retail property, the property owner felt that market conditions made it a good time to sell. However, the property had some environmental contamination from a dry cleaner tenant, and no banks were willing to underwrite the property, limiting the pool of potential buyers to cash-only investors. Admiral arranged a sale where the buyer was indemnified by the seller for any additional environmental cleanup of the property. This indemnification allowed the buyer to find financing for the acquisition.
- The site’s environmental issues made banks unwilling to underwrite a mortgage for the property.
- Many buyers shied away from the asset due to the on-going environmental monitoring at the property.
- The property was a substantial retail location with multiple tenants and had significant value where a mortgage would be appropriate.
- Most buyers would not be able to buy the property truly all-cash.
- Because of the indemnification, the seller was able to sell the property at full market value, and the buyer was able to procure funding for the acquisition.
- Admiral made all buyers aware of the ongoing well-monitoring, providing the seller a true picture of the value of the property and allowing buyers to make accurate offers reflecting the real, on-the-ground environmental conditions of the property, preventing re-trading.
- Admiral arranged a sale where the buyer was indemnified by the seller for any additional environmental cleanup of the property beyond well monitoring for an agreed period of time.