The Seller’s family and various tenants operated a service station at the site for over 30 years. After spending $1.5 million for environmental remediation, the Los Angeles Regional Water Quality Control Board (Water Board) demanded additional subsurface remediation activities. The Site remained vacant and blighted in an area of active redevelopment in East Hollywood. Given the estimated $1 million additional environmental costs, the Seller was unable to sell the property after being on the market for over two years.
Hyperion Due Diligence
During escrow, Hyperion wrote a preliminary Remediation Work Plan and began negotiations with the Water Board for a path to obtain a No Further Action Letter. Hyperion also hired an environmental attorney and a grant expert to determine if the site could be a candidate for government environmental grants.
Hyperion Solution
Hyperion closed escrow after analyzing remediation options and determining the probability of receiving State environmental grants. Although no agency closure limits or grants were guaranteed during escrow, Hyperion bought the property after a 60-day due diligence period. The environmental liability to the Seller has been minimized. Hyperion continues to meet its environmental obligations while the State Water Resources Control Board process our grant application, which we expect to be approved in early 2017.
