Family Estate
When the next generation came into ownership of their family real estate empire, they didn’t plan on contamination being a part of the education.
Problem
When the second generation of the family came into ownership of the real estate portfolio, there was a lot of estate planning needed. The ownership group was not a handful of siblings anymore, it was more than a dozen family members with varying degrees of ownership and responsibilities.
The portfolio was mostly commercial properties and these ranged from storage facilities, to dentist offices and small office buildings. When the portfolio was being appraised, there were a few properties that were suspected of being contaminated so they were investigated for pollution impacts.
Two of the properties had a history of gas operations and one of the properties was adjacent to a dry cleaning facility.
Solution
Restorical was hired by the family to recreate the historical insurance record and advise on how best to pursue coverage on the now known polluted sites.
Working with the family and their legal counsel, Restorical put together a comprehensive coverage strategy and obtained the funding needed to address the pollution impacts on the three sites.
With a greater understanding of the value of these old policies the family was able to further protect themselves from environmental liabilities.
Impact
The family was able to avoid a loss in value as well as an equity raise to address the contamination.
One of these sites was sold as a result of the remediation and has since been redeveloped into a shopping center.
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