Brownfield developers purchase environmentally challenged properties, remediate them to an appropriate regulatory standard, and redevelop them for a particular end use (industrial, commercial, mixed use, residential or others). Similarly, “repositioners” purchase brownfields and remediate them to an appropriate standard, but typically do not develop the properties themselves; rather repositioners typically sell after completing the remediation or, in some cases, quickly “flip” the property to a developer (brownfield or otherwise).

Brownfield developers and repositioners are valuable to the process of returning dirty surplus properties to productive reuse. However, in a slow real estate market, developers and repositioners sometimes market themselves as owner-side brownfield consultants. Despite their value to the brownfield industry and the communities they help revitalize, developers and repositioners are generally not ideal owner-side consultants. They generally do not have the range of capabilities and expertise necessary to identify and execute the full spectrum of VR and RM solutions and may have additional interests and objectives that are not well-aligned with those of the owner. Learn More

Risk transfer companies (“RTCs”) are specialized firms that contractually assume responsibility for environmental liabilities for a fee. An RTC can be useful when a corporation seeks to remove a liability from its books in a short time frame. An RTC can also be useful to provide a solution for owners who wish to sell their properties to traditional (non-brownfield) developers or possibly to off-load risk in the context of a corporate merger or acquisition. However, the typical RTC model has associated costs and limitations that can make risk transfer unsuitable or unfeasible for a given site or portfolio. Learn More

When an owner knows unequivocally that retention and remediation is the right approach and there are no other VR/RM opportunities for a particular site, a traditional environmental consulting/engineering firm can help manage risk by providing site remediation services, including in some cases for a lump-sum fixed fee to protect against cost overruns. A cleanup by a traditional environmental consultant/engineer can often be a good way for an owner to directly reduce risk (i.e., by remediating the problem); however, there are limitations to this approach that can reinforce inertia and lead to lost VR opportunities. Learn More

Environmental insurance is another option utilized by many organizations to manage their risk, particularly where they seek to avoid costs of directly investigating or remediating unknown historic conditions at their properties. Insurance brokers are skilled at structuring and obtaining environmental insurance to cover such unknown risks, typically through Pollution Legal Liability or “PLL” policies. To satisfy this client demand, brokers often structure a wrap-up policy that provides a blanket of coverage for all the client’s properties. Although relying on insurance as the sole RM approach can help contain or manage unknown risks, it can also result in owners missing or bypassing other valuable VR and RM options. Learn More

Real estate brokers excel at identifying and pursuing leads and valuing property under traditional “highest and best” standards to achieve maximum sale proceeds for their clients. Many companies have long-standing relationships with “traditional” real estate brokers (not brownfield specialists), and it is only natural they would turn to their brokers when considering options for divesting surplus properties. Because brokers act on commission rather than a consulting fee, they are highly motivated to sell properties quickly and to the highest bidder, which is good for owners who seek a swift and profitable divestment. However, traditional real estate brokers generally do not have a high level of expertise/experience with brownfields, and often do not focus on long-term risk mitigation issues which are important to the owner. Learn More

Many law firms with environmental practices market themselves to owners of surplus properties as brownfields advisors. Law firms can provide both real estate and environmental legal experience, but generally lack the full range of consulting capabilities and multiple perspectives necessary to identify and execute optimal VR/RM strategies. Real estate attorneys provide necessary transactional legal services, although they often have limited experience with environmental issues. Environmental attorneys provide VR and RM capabilities, but often lack transactional experience. And even those attorneys who have environmental transactional experience focus on legal/RM strategies and often lack the ability to identify and implement the best VR opportunities. Law firms typically also lack the real estate valuation and Information Management capabilities that BMA offers as part of its integrated solution. Learn More