Background: BRC, in partnership Myron Allick, established St. Croix Renaissance Group LLLP to acquire and redevelop a 1200-acre industrial property on the southern coast of St. Croix, U.S. Virgin Islands. The property, St. Croix Renaissance Park, is bordered on the west by the Island's only landfill, a wastewater treatment plant and the airport. To the north is the only four-lane highway in the U.S.V.I. and to the east is the Hovensa oil refinery, which is the largest oil refinery in the Western Hemisphere. The property is located eight miles from the town of Christensted and ten miles from Fredericksted, St. Croix's two historic commercial centers.
Harvey Aluminum Corporation first developed the property in 1962 in conjunction with the U.S.V.I. Government for its alumina production operations, which involved the extraction of alumina from bauxite. Since then, several other companies including Martin Marietta, Virgin Islands Alumina Corporation, and most recently Alcoa World Aluminum and Chemical Corporation, have owned and operated the site. St. Croix Renaissance Group acquired the property in June 2002.
BRC Activity: St. Croix Renaissance Park has more than 300 acres of industrial buildings and infrastructure. Other site assets include a 65 MW coal-fired power plant, a two million gallon per day desalinization facility and undeveloped coastal areas. The Property's port, Port St. Croix, at 7,000 feet long, 300 feet wide and 35 feet deep, is one of the largest and most sheltered deep-water ports in the Caribbean.
The multi-faceted redevelopment plan includes full utilization of the power generating and water producing facilities and enhancements to the deep-water port and docking facilities to maximize its use for importing raw materials, exporting manufactured goods and supporting businesses offering ship deconstruction, haul out and repair services. St. Croix Renaissance Group is now in negotiations with several industrial, manufacturing and commercial businesses that are interested in siting facilities on the property.
Background: The 230,000 square foot Harvard Mills facility was originally constructed in the late 19th century to serve as a knitting mill for the Winship-Boit Company. In 1984, the mill underwent an extensive multi-million dollar conversion into Class A suburban office space. Shortly after the conversion, an institutional real estate fund acquired the property. Several years later when the fund was closing out, repeated attempts to sell Harvard Mills fell through due to concerns about chlorinated solvents that had been discovered in the site's soil and groundwater. The owners had installed a groundwater extraction and treatment system, but hydrogeologic conditions at the site rendered the system inoperable for long periods of time, preventing an effective remediation of the site.
BRC Activity: A developer interested in Harvard Mills approached BRC in 1999 to form a partnership to acquire the property. BRC's environmental affiliate, ERI, quickly overhauled and retrofitted the groundwater treatment system, which now operates with less than 1% downtime. The concentration of chlorinated solvents at the site has decreased substantially and full remediation is expected by 2003. In addition to cleaning up the site, BRC and its partner performed extensive building repairs and renovations.
Background: In 1988, an on-site underground storage tank spilled 30,000 gallons of #2 fuel oil at the One First Avenue property, a 130,000 square foot industrial and manufacturing building. Environmental testing revealed that contamination had concentrated in the groundwater underneath the building itself. The site owner did not have the financial resources to cleanup or manage the site, which had already suffered from years of deferred maintenance. The owner intended to vacate the site and, given the environmental conditions, had little hope of attracting a buyer for the property.
BRC Activity: In 1997, BRC made arrangements with the owner to purchase the mortgage on the property from the FDIC, foreclose on the site and release the former owners from the potential environmental liability associated with the property. BRC's environmental affiliate, ERI, then commenced an aggressive environmental cleanup that should result in a "No Further Action" status from the Commonwealth of Massachusetts in three to five years. BRC also performed extensive building repairs and found a tenant that signed a long-term lease for the entire building within six months of taking title to the property. The new tenant is a manufacturing company that has brought more than 200 new jobs to the Peabody community.
Background: This 170,000 square foot industrial building, situated on 21 acres in North Andover, was vacant and functionally obsolete when the owner approached BRC about purchasing the property. For more than 30 years, the facility housed plastic wrap manufacturing operations that led to numerous releases of hazardous materials, including plasticizers and chlorinated solvents. The worst incident occurred in 1995 when #6 fuel oil spilled into the site's soil and groundwater. In addition to this soil and groundwater contamination, the building itself contained lead paint and asbestos.
BRC Activity: BRC partnered with Aries Development in July 1998 to acquire, clean up and redevelop the site. BRC's environmental affiliate, ERI, managed the remediation which included treatment of the soil and groundwater, a complete reworking of the site's drainage system, and landscaping to meet Conservation Commission requirements for water treatment and runoff control into wetlands. Facility renovations included demolition of the older portions of the building, construction of a 58,000 square foot addition, a complete updating of the interior and exterior of the remaining structures, and repair or replacement of all of the facility's mechanical systems and roofing.
The Town of North Andover established a Tax Increment Financing (TIF) to help minimize the redevelopment costs and to encourage a manufacturing or research and development reuse for the site. The first-class warehouse/ manufacturing facility now consists of 177,000 square feet of space that can be subdivided into areas as small as 16,000 square feet.
Background: This 135,000 square foot industrial facility in Andover was used for years to manufacture car seats. The site owners discovered chlorinated solvents in the soil and groundwater and the high costs of environmental cleanup ultimately forced them to abandon the property in 1991. An investor purchased the property and began to clean up the site but did not maintain the facility, which eventually fell into serious disrepair. The property was again put up for sale, but fear of environmental liability, high renovation costs, and unpaid taxes deterred most prospective purchasers.
BRC Activity: BRC purchased the property in March 1998 and, working with its environmental affiliate, ERI, improved upon and continued the remediation process. BRC also undertook major renovations of the facility, which included replacing all of the mechanical systems, the roof membrane and the decking, renovating the manufacturing areas and constructing a new office area. In September 2000, a bioengineering firm signed a ten-year lease with a purchase option in the third year. The Town of Andover has benefited from increased industrial space, additional tax revenue, and the restoration of nearly 200 jobs in the Merrimack Valley area.
Background: Bayer-AGFA decided to divest its real estate assets, which included a 60,800 sq. ft. high-tech, research and development building situated on 2.3 acres. Because Bayer-AGFA was concerned that the site's soil and groundwater were contaminated with chlorinated solvents, it wanted to sell the property and divest itself of any potential environmental liability.
BRC Activity: BRC took title to the property in 1999 and used indemnities and insurance products to limit Bayer-AGFA's environmental liability. BRC conducted additional site assessments, which revealed some contamination but showed the property to be in compliance with Massachusetts' environmental regulations. As a result, BRC determined that the site did not require further remediation. BRC also filed for Downgradient Property Status under the Massachusetts Contingency Plan, which brought regulatory closure to the site and further assurance that Bayer-AGFA would not have future environmental liability associated with 55 Concord Road. Immediately following a one-year leaseback to Bayer-AGFA, BRC signed a long-term lease with Mediaone of Massachusetts, which offers services as AT&T Broadband.
