Superfund Success or Failure

Under Superfund legislation, the innocent landowner §defense has led to the use of environmental site §assessments (ESAs) as a common practice in the §acquisition and financing of commercial property. §The objective of this inquiry was to examine the §effects of environmental risks and liabilities as §disclosed in ESAs in the acquisition and financing §of a set of commercial property transactions in the §Portland, Oregon metropolitan area. The findings §suggest that transaction prices are not reduced in §the structuring of risk and liability. In addition, §financing is likely to revert to seller financing §when environmental risk and liability are present. §Furthermore, the Superfund liability provisions have §led to the mitigation of environmental degradation §in the acquiring of commercial properties with minor §environmental problems while those with more §substantial problems may not be acquired or §financed. Policy implications are posited §addressing brownfield redevelopment issues. §Commercial real estate brokers, attorneys, and §lenders; and professionals in environmental law, §policy, planning, and economics should find this §research useful and enlightening.