Projects

ECOLONOMIC REALTY GROUP

Because Ecology Means Business

Projects & News

Recent News

Buyer Takes "Green" Approach - Sept. 17, 2009

Harman/Becker Finds Building Buyer - Sept. 16, 2009

Former Harman/Becker Site Slated For Redevelopment - Sept. 14, 2009

Restore Winona To City Tax Roles - August 8, 2009

Winona Plans Emerge - August 1, 2009

TeD Frequently Asked Questions

Projects

Environmental Real Estate TransactionS

Involving ERG Principal

Harman/Becker Automotive

ERG acquired the former 225,000 square foot Harman/Becker Automotive Corporate Campus in Martinsville, IN from Harman International Inc. along with 24 acres of environmentally-contaminated property. They have assumed responsibility for the $3.2 million remediation of the former automotive sounds system manufacturing site along with the re-development and repositioning of the real estate asset.

General Chemical
ERG Principals acquired a 37-acre property that was previously operated by General Chemical Corporation in Denver, Colorado. They are responsible for the clean-up of environmental impacts and will support the city and county of Denver in developing the property.

Sunflower Ammunition Plant
Sunflower Redevelopment, LLC, a joint venture between ERG Principals and Kessinger/Hunter & Co. LLC, was awarded a $109,000,000 requirements-type contract for the environmental remediation and explosives decontamination of 9,065 acres of land formally known as Sunflower Army Ammunition Plant in Johnson County, KS.

Reichhold
ERG Principals were involved in a transfer of Reichhold’s portfolio of surplus assets located in the United States, Mexico and Switzerland. Swiss North American Properties, Inc. (SNAP), a joint venture between ERG Principals and Cobra Ventures, LLC of Raleigh, NC, acquired the Reichhold portfolio. Reichhold President and CEO John Gaither stated, "The disposal of these surplus properties is part of Reichhold's strategic plan to become more competitive in our core business as the world's largest manufacturer of unsaturated polyester resins and a leading supplier of coating resins."

Ford Automobile Assembly Plant in Lorain, Ohio
Industrial Realty Group, Ohio Realty Advisors, LLC and ERG Principals acquired the former 279 acre Ford Automobile Assembly Plant in Lorain, Ohio. The as-is where-is transaction requires IRG Lorain, LLC to accept all current and future environmental liabilities from historical operations. IRG Lorain, LLC will conduct the necessary environmental clean-up and close the site under the Ohio Voluntary Action Program, reconfigure the existing buildings and make the site available for lease to industrial tenants.

Lowry I - Former Air Force Base
ERG Principals were involved in a national first - the privatization of the remaining environmental liability at the former Lowry Air Force Base. Lowry Assumption LLC will assume the responsibility for remediation of an onsite landfill and site-wide ground water, and will provide security for third party liability. The agreement is the first of its kind for the Air Force, which is responsible for the environmental remediation and conversion of 32 closed air force bases around the country.

Downey Industrial Plant
ERG Principals were involved in a national first - the privatization of the environmental liability at the former National Aeronautics and Space Administration Industrial Plant in Downey, CA. International Risk Assumption - Downey, LLC, (IRAD) was awarded a $20.5 million contract by the City of Downey, CA for the privatization and assumption of the environmental responsibility of the former National Aeronautics and Space Administration (NASA) Industrial Plant in Downey, CA.

New Haven Retail Power Center
Eclipse Development Group and ERG Principals plan to redevelop 22-acre former Waste Water Treatment and Scrap Yard Site in North Haven, CT into Class A Retail Power Center.

TAX-EFFICIENT DISPOSITION REAL ESTATE TRANSACTIONS

Involving ERG Principals

Con-Agra

ERG Principals facilitated the transfer of Con-Agra’s Historic 164,000 s.f. manufacturing/warehouse facility in Ashland, OH to a non-profit company utilizing the Tax Efficient Disposition program. Con-Agra received financial benefits in excess of that which they would have received in an outright sale of the property. ERG is currently re-developing this property.

FMC Corporation

ERG Principals were involved in the transfer of FMC’s surplus, 14 acre, 300,000 sf. manufacturing facility in Danville, IL to a non-profit company through the Tax Efficient Disposition program. FMC was able to realize greater financial benefits through the Tax Efficient Disposition program than from a traditional sale. The non-profit company leases the facility to Dawson Logistics.

Superior Essex, Inc.

ERG Principals utilized the Tax Efficient Disposition program to transfer the idle, 377,000 s.f., 28 acre, Superior Essex wire manufacturing facility to a non-profit company. Superior Essex received financial benefits in an amount greater than they were able to sell the facility for in a traditional sale. The non-profit company has leased the facility to multiple tenants.

Murray Corporation

When Murray Corporation made the decision to shut down their 200,000 manufacturing/distribution facility in Palestine, TX, they looked to ERG Principals to affect a Tax-Efficient Disposition. This asset was transferred to a non-profit company, which provided Murray Corp with substantially reduced tax liability and economic benefits. In addition, Murray Corp. was relieved of the ongoing environmental monitoring at the site as well as future environmental liability.

Quebecor World, Inc.

When Quebecor World looked to dispose of their 700,000 s.f. printing facility on 60 acres in Salem, IL, they looked to ERG’s Principals to handle the transaction under the Tax-Efficient Disposition program. This facility, along with the existing environmental liability, was transferred to a non-profit company. Quebecor World received substantial economic benefits from the transaction.

AAF-McQuay International

The McQuay building stayed on the market for several years with only a few failed offers from prospective buyers due to an unresolved environmental problem. In the meantime, the McQuay building continued to run up huge costs for insurance, taxes and upkeep. The company then looked to ERG’s Principals to construct a Tax-Efficient Disposition program that would eliminate their annual carrying costs and ongoing environmental liability. They also enjoyed a better financial benefit from this transaction as compared to the other offers under consideration.

Rockbestos Surprenant Cable Corp – a Subsidiary of The Marmon Group LLC

ERG Principals managed the Tax-Efficient Disposition of Rockbestos’ 360,000 s.f. headquarters building on 16 acres in Clinton, MA. Rockbestos was immediately able to purge the annual carrying cost of $500,000. They also received a superior cash benefit as compared to the other offer under consideration. They were able to dispose of a corporate headache, they realized an attractive financial benefit and were no longer responsible for remediation the environmental issues.

TRADITIONAL REAL ESTATE ACQUISITION/DEVELOPMENT TRANSACTIONS

Involving ERG Principals

Thermal Resources, Inc.; Tulsa, OK – a ONEOK, Inc. subsidiary

ERG Principals acquired the underutilized Combined Heat & Power (CHP) facility in Tulsa, OK. This facility consists of 360 Million BTU/hr of heating, 23,875 tons of cooling and 1.3 MW of electric generation capacity. This facility now provides the heating and cooling needs of 6 million s.f. of commercial space including major office buildings, State and County government facilities, apartment buildings, hotels and Arts and Cultural Centers through 12 miles of underground distribution piping in Downtown Tulsa. This facility was awarded the EPA Energy Star® CHP Award in 2000.

Thermal Resources, Inc.; Oklahoma City, OK – a ONEOK, Inc. subsidiary

ERG Principals acquired the underutilized Combined Heat & Power (CHP) facility in Oklahoma City, OK. This facility consists of 360 Million BTU/hr of heating, 17,500 tons of cooling and 1.2 MW of electric generation capacity. This facility now provides the heating and cooling needs of 5 million s.f. of commercial space including major office buildings, Federal and County government facilities, hotels and Arts and Cultural Centers through 8 miles of underground distribution piping in Downtown Oklahoma City. This facility was awarded the EPA Energy Star® CHP Award in 2000.

Kansas City Power & Light

ERG Principals acquired the underutilized Combined Heat & Power (CHP) facility in Kansas City, MO. This facility consists of 1,560 Million BTU/hr of heating, 10,200 tons of cooling and 5 MW of electric generation capacity. This facility now provides the heating and cooling needs of 60 commercial buildings representing over 4 million s.f. of space through 16 miles of underground distribution piping in Downtown Kansas City.

Thermal Cold Storage, Inc.; Tulsa, OK

ERG Principals acquired this 1,200,000 cu. ft., concrete pre-stressed double-tee construction public freezer warehouse facility in Tulsa, OK. The warehouse is cooled with a brine refrigeration system and is configured to accommodate products with temperature needs ranging from -10°F to 0°F. This facility is fully racked with over 5,000 pallet positions. The cooled dock is fully enclosed with 14 truck doors. Central Station Alarm system provides 24 hour a day monitoring of fire, burglar and refrigeration systems

Nine on Main Mixed Use Facility

ERG Principals acquired this former gas station site from Shell Oil Company in a suburb of a major Midwest city. They designed and received all entitlements and approvals to construct this 36,000 s.f. mixed use facility consisting of underground parking garage, first floor retail and second and third floor luxury condominiums. Construction of this is on hold until the residential market improves.

Central West End Subdivision

ERG Principals acquired an old lumber yard property dating back to the mid 1800’s from the estate of the original family. We designed, platted and entitled this property into an 8 lot infill project in a wealthy Midwest community. Construction of this is on hold until the residential market improves.

Westchase Subdivision

ERG Principals acquired, developed and constructed 13 estate homes on 16 acres in a wealthy Midwest suburb. This project entailed acquisition, platting, entitlements, utility and infrastructure construction and home construction as a turnkey developer/builder. Home values ranged from $650,000 to $950,000.

Morgan’s Creek Subdivision

ERG Principals acquired, developed and constructed 11 luxury residences on 6.5 heavily infill acres in a wealthy Midwest suburb. The historic property contained wetlands and a Corps of Engineers controlled stream. This project entailed acquisition, platting, entitlements, utility and infrastructure construction and home construction as a turnkey developer/builder. Home values ranged from $650,000 to $1,300,000.

Spring Leaf Subdivision

ERG Principals have acquired and are developing Spring Leaf. Spring Leaf is a high density master planned urban infill development with an equal mix of high in attached and detached single family residences in Boulder, CO. These homes are projected to have a net zero energy consumption and LEED ratings.

Nathan’s Gate Subdivision

ERG Principals acquired this partially-developed, distressed asset from an area developer. We then completed the development, re-branded the asset and constructed 5 luxury estates on 18 acres in a wealthy Midwest suburb. This property is a gated community which offers city water/city sewers/and street lights. The five estate lots ranged in size from two to six acres. This project entailed distressed-asset acquisition, development completion, repositioning, re-branding and estate home construction as a turnkey developer/builder. Home values ranged from $1.1 million and up.

Environmental Real Estate TransactionS *Involving ERG Principal*

Harman/Becker Automotive ERG acquired the former 225,000 square foot Harman/Becker Automotive Corporate Campus in Martinsville, IN from Harman International Inc. along with 24 acres of environmentally-contaminated property. They have assumed responsibility for the $3.2 million remediation of the former automotive sounds system manufacturing site along with the re-development and repositioning of the real estate asset.

General Chemical ERG Principals acquired a 37-acre property that was previously operated by General Chemical Corporation in Denver, Colorado. They are responsible for the clean-up of environmental impacts and will support the city and county of Denver in developing the property.

Sunflower Ammunition Plant Sunflower Redevelopment, LLC, a joint venture between ERG Principals and Kessinger/Hunter & Co. LLC, was awarded a $109,000,000 requirements-type contract for the environmental remediation and explosives decontamination of 9,065 acres of land formally known as Sunflower Army Ammunition Plant in Johnson County, KS.

Reichhold ERG Principals were involved in a transfer of Reichhold’s portfolio of surplus assets located in the United States, Mexico and Switzerland. Swiss North American Properties, Inc. (SNAP), a joint venture between ERG Principals and Cobra Ventures, LLC of Raleigh, NC, acquired the Reichhold portfolio. Reichhold President and CEO John Gaither stated, "The disposal of these surplus properties is part of Reichhold's strategic plan to become more competitive in our core business as the world's largest manufacturer of unsaturated polyester resins and a leading supplier of coating resins."

Ford Automobile Assembly Plant in Lorain, Ohio Industrial Realty Group, Ohio Realty Advisors, LLC and ERG Principals acquired the former 279 acre Ford Automobile Assembly Plant in Lorain, Ohio. The as-is where-is transaction requires IRG Lorain, LLC to accept all current and future environmental liabilities from historical operations. IRG Lorain, LLC will conduct the necessary environmental clean-up and close the site under the Ohio Voluntary Action Program, reconfigure the existing buildings and make the site available for lease to industrial tenants.

Lowry I - Former Air Force Base ERG Principals were involved in a national first - the privatization of the remaining environmental liability at the former Lowry Air Force Base. Lowry Assumption LLC will assume the responsibility for remediation of an onsite landfill and site-wide ground water, and will provide security for third party liability. The agreement is the first of its kind for the Air Force, which is responsible for the environmental remediation and conversion of 32 closed air force bases around the country.

Downey Industrial Plant ERG Principals were involved in a national first - the privatization of the environmental liability at the former National Aeronautics and Space Administration Industrial Plant in Downey, CA. International Risk Assumption - Downey, LLC, (IRAD) was awarded a $20.5 million contract by the City of Downey, CA for the privatization and assumption of the environmental responsibility of the former National Aeronautics and Space Administration (NASA) Industrial Plant in Downey, CA.

New Haven Retail Power Center Eclipse Development Group and ERG Principals plan to redevelop 22-acre former Waste Water Treatment and Scrap Yard Site in North Haven, CT into Class A Retail Power Center.

TAX-EFFICIENT DISPOSITION REAL ESTATE TRANSACTIONS *Involving ERG Principals*

Con-Agra ERG Principals facilitated the transfer of Con-Agra’s Historic 164,000 s.f. manufacturing/warehouse facility in Ashland, OH to a non-profit company utilizing the Tax Efficient Disposition program. Con-Agra received financial benefits in excess of that which they would have received in an outright sale of the property. ERG is currently re-developing this property.

FMC Corporation ERG Principals were involved in the transfer of FMC’s surplus, 14 acre, 300,000 sf. manufacturing facility in Danville, IL to a non-profit company through the Tax Efficient Disposition program. FMC was able to realize greater financial benefits through the Tax Efficient Disposition program than from a traditional sale. The non-profit company leases the facility to Dawson Logistics.

Superior Essex, Inc. ERG Principals utilized the Tax Efficient Disposition program to transfer the idle, 377,000 s.f., 28 acre, Superior Essex wire manufacturing facility to a non-profit company. Superior Essex received financial benefits in an amount greater than they were able to sell the facility for in a traditional sale. The non-profit company has leased the facility to multiple tenants.

Murray Corporation When Murray Corporation made the decision to shut down their 200,000 manufacturing/distribution facility in Palestine, TX, they looked to ERG Principals to affect a Tax-Efficient Disposition. This asset was transferred to a non-profit company, which provided Murray Corp with substantially reduced tax liability and economic benefits. In addition, Murray Corp. was relieved of the ongoing environmental monitoring at the site as well as future environmental liability.

Quebecor World, Inc. When Quebecor World looked to dispose of their 700,000 s.f. printing facility on 60 acres in Salem, IL, they looked to ERG’s Principals to handle the transaction under the Tax-Efficient Disposition program. This facility, along with the existing environmental liability, was transferred to a non-profit company. Quebecor World received substantial economic benefits from the transaction.

AAF-McQuay International The McQuay building stayed on the market for several years with only a few failed offers from prospective buyers due to an unresolved environmental problem. In the meantime, the McQuay building continued to run up huge costs for insurance, taxes and upkeep. The company then looked to ERG’s Principals to construct a Tax-Efficient Disposition program that would eliminate their annual carrying costs and ongoing environmental liability. They also enjoyed a better financial benefit from this transaction as compared to the other offers under consideration.

Rockbestos Surprenant Cable Corp – a Subsidiary of The Marmon Group LLC ERG Principals managed the Tax-Efficient Disposition of Rockbestos’ 360,000 s.f. headquarters building on 16 acres in Clinton, MA. Rockbestos was immediately able to purge the annual carrying cost of $500,000. They also received a superior cash benefit as compared to the other offer under consideration. They were able to dispose of a corporate headache, they realized an attractive financial benefit and were no longer responsible for remediation the environmental issues.

TRADITIONAL REAL ESTATE ACQUISITION/DEVELOPMENT TRANSACTIONS *Involving ERG Principals*

Thermal Resources, Inc.; Tulsa, OK – a ONEOK, Inc. subsidiary ERG Principals acquired the underutilized Combined Heat & Power (CHP) facility in Tulsa, OK. This facility consists of 360 Million BTU/hr of heating, 23,875 tons of cooling and 1.3 MW of electric generation capacity. This facility now provides the heating and cooling needs of 6 million s.f. of commercial space including major office buildings, State and County government facilities, apartment buildings, hotels and Arts and Cultural Centers through 12 miles of underground distribution piping in Downtown Tulsa. This facility was awarded the EPA Energy Star® CHP Award in 2000.

Thermal Resources, Inc.; Oklahoma City, OK – a ONEOK, Inc. subsidiary ERG Principals acquired the underutilized Combined Heat & Power (CHP) facility in Oklahoma City, OK. This facility consists of 360 Million BTU/hr of heating, 17,500 tons of cooling and 1.2 MW of electric generation capacity. This facility now provides the heating and cooling needs of 5 million s.f. of commercial space including major office buildings, Federal and County government facilities, hotels and Arts and Cultural Centers through 8 miles of underground distribution piping in Downtown Oklahoma City. This facility was awarded the EPA Energy Star® CHP Award in 2000.

Kansas City Power & Light ERG Principals acquired the underutilized Combined Heat & Power (CHP) facility in Kansas City, MO. This facility consists of 1,560 Million BTU/hr of heating, 10,200 tons of cooling and 5 MW of electric generation capacity. This facility now provides the heating and cooling needs of 60 commercial buildings representing over 4 million s.f. of space through 16 miles of underground distribution piping in Downtown Kansas City.

Thermal Cold Storage, Inc.; Tulsa, OK ERG Principals acquired this 1,200,000 cu. ft., concrete pre-stressed double-tee construction public freezer warehouse facility in Tulsa, OK. The warehouse is cooled with a brine refrigeration system and is configured to accommodate products with temperature needs ranging from -10°F to 0°F. This facility is fully racked with over 5,000 pallet positions. The cooled dock is fully enclosed with 14 truck doors. Central Station Alarm system provides 24 hour a day monitoring of fire, burglar and refrigeration systems

Nine on Main Mixed Use Facility ERG Principals acquired this former gas station site from Shell Oil Company in a suburb of a major Midwest city. They designed and received all entitlements and approvals to construct this 36,000 s.f. mixed use facility consisting of underground parking garage, first floor retail and second and third floor luxury condominiums. Construction of this is on hold until the residential market improves.

Central West End Subdivision ERG Principals acquired an old lumber yard property dating back to the mid 1800’s from the estate of the original family. We designed, platted and entitled this property into an 8 lot infill project in a wealthy Midwest community. Construction of this is on hold until the residential market improves.

Westchase Subdivision ERG Principals acquired, developed and constructed 13 estate homes on 16 acres in a wealthy Midwest suburb. This project entailed acquisition, platting, entitlements, utility and infrastructure construction and home construction as a turnkey developer/builder. Home values ranged from $650,000 to $950,000.

Morgan’s Creek Subdivision ERG Principals acquired, developed and constructed 11 luxury residences on 6.5 heavily infill acres in a wealthy Midwest suburb. The historic property contained wetlands and a Corps of Engineers controlled stream. This project entailed acquisition, platting, entitlements, utility and infrastructure construction and home construction as a turnkey developer/builder. Home values ranged from $650,000 to $1,300,000.

Spring Leaf Subdivision ERG Principals have acquired and are developing Spring Leaf. Spring Leaf is a high density master planned urban infill development with an equal mix of high in attached and detached single family residences in Boulder, CO. These homes are projected to have a net zero energy consumption and LEED ratings.

Nathan’s Gate Subdivision ERG Principals acquired this partially-developed, distressed asset from an area developer. We then completed the development, re-branded the asset and constructed 5 luxury estates on 18 acres in a wealthy Midwest suburb. This property is a gated community which offers city water/city sewers/and street lights. The five estate lots ranged in size from two to six acres. This project entailed distressed-asset acquisition, development completion, repositioning, re-branding and estate home construction as a turnkey developer/builder. Home values ranged from $1.1 million and up.