Former Dry Cleaner in a Shopping Center
Source: SiriusPoint Environmental
A bank was looking to provide financing for the acquisition of a multi-tenant commercial shopping center in Chicago. The issue holding up the negotiations was their concern with potential environmental impacts from an on-site dry cleaner that had operated for decades prior to vacating the site in the late 1990’s. A limited investigation that focused on the former dry cleaner was conducted when the property changed hands in the early 2000’s. That investigation detected dry cleaning chemicals in soil and groundwater beneath the site. Based upon the data collected in the 2000’s and the financial strength of the borrower and guarantor, SiriusPoint offered unrestricted site coverage for the lender. In the event the borrower was to default on the loan, the lender would have environmental insurance coverage for cleanup costs or mortgage protection, as well as coverage for third party bodily injury or property damage claims.
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