The owner of a $5.1 million office/warehouse property approached a commercial bank to secure a loan. The property had contaminated groundwater with an estimated remedial cost of $500,000. The bank offered a $2 million loan with a $750,000 reserve for cleanup and required a personal guarantee, collateral pledge, and environmental indemnification. The owner turned to ECAP.
ECAP was able to place a $3.8 million, five-year, non-recourse loan, and replace the guarantee and indemnification with remedial and environmental liability insurance policies.