In parts of NYC, it feels like 2006 again with construction projects on every block. How is this possible at a time when lenders still shying away from construction loans and equity investors demand 20% returns? One popular source of relatively cheap financing is the so-called EB-5 visa program that is available to foreigners who invest […]
EB-5 Visa Program Becomes Important Source of Project Funding in NYC Read More »
A federal district court declined to dismiss a RCRA 7002 action brought by a foreclosing lender against the owner of an adjacent dry cleaner in Forest Park National Bank & Trust v Ditchfield, 2012 U.S. Dist. LEXIS 103007(N.D. Ill. 7/24/12). The court also granted summary judgment on the bank’s CERCLA cost recovery claim. One reason
Foreclosing Lender RCRA Action May Proceed Read More »
In the wake of increased damage from storms as well as growing recognition of the environmental benefits of floodplains, states are increasingly limiting development in areas that are prone to flooding during storms. This regulatory trend sometimes conflicts with state and federal historic preservation programs where historic building may be located in areas that are
Split Decision for NJ Owner in Floodplain Case Read More »
On May 7, 2012, the New Jersey Site Remediation Reform Act, N.J.S.A. 58:10C-1 et seq. (SRRA) became fully effective. With limited exceptions, all site remediation projects in the state of New Jersey regardless of when work began must proceed under the supervision of a Licensed Site Remediation Professional (LSRP) and without New Jersey Department of Environmental
NJ Lawyers Raise Concerns About Transparency of LSRP Program Read More »
Last week, we discussed due diligence for transactions involving purchases of equity interests in entities that own property that are in technical default of the mortgages. This post discusses potential environmental liability for fractional ownership interests in the underlying property. First year saw students are taught in Real Property Class that property ownership consists of
Environmental Liability and “Fractional” Property Interests Read More »
Many real estate fortunes were amassed following the savings and loan (S&L) crisis of the late 1980s when the Resolution Trust Corporation (RTC) sold loan portfolios owned by defunct S&L entities at what later proved to be distressed pricing. At the depth of the Great Recession, distressed asset firms quickly raised huge amounts of capital
Due Diligence and “Recapitalization” Transactions Read More »
The recent decision in Sisters of Notre Dame De Namur v. Mrs. Owen J. Garnett-Murray, 2012 U.S. Dist. LEXIS 78747 (N.D. Cal. 6/6/12) is the latest example of how vapor intrusion has become a game changer for toxic tort and RCRA litigation. Vapor intrusion was the only potential exposure pathway since groundwater was not used
District Ct Holds Vapor Intrusion Is Imminent and Substantial Endangerment Read More »
The Great Recession caused hundreds of residential development projects to ground to a halt. Not surprising, these failed projects have spawned lots of litigation. An interesting Maryland lawsuit involves allegations of fraud and misrepresentation of environmental issues at a development site, and has ensnarled a foreclosing lender. In U.S. Home v Settler’s Crossing, 2010 U.S.
Contamination at Heart of Litigation Over Failed Subdivisions Read More »
In Rhima v JPMorgan Chase Bank, 2012 U.S. Dist.LEXIS 70492 (N.D.Tx. 5/18/02), plaintiff was the successful bidder at a foreclosure auction for a warehouse property. The advertised terms and conditions of the foreclosure sale offer indicated that bidders would be provided with environmental reports and access to the property for inspection but the sale was
Bank Not Liable for Failing To Disclose Environmental Issues At Foreclosure Sale Read More »
The Delaware Supreme Court ruled that a bidder that declined to proceed with a $170 million could not recover recoup $1.2 million in due diligence and negotiation costs. In RAA Management, LLC v. Savage Sports Holdings, Inc., 2012 Del. LEXIS 271 (Del. 5/18/12) , investment fund RAA Management (RAA) was invited by an investor bank
Non-Reliance Clause Bars Walk-Away Bidder From Recouping Diligence Costs Read More »