Acquisition Strategy
CDC possesses a unique ability to create value from impaired properties through a proven combination of remediation, property redevelopment, property repositioning, indemnifications and insurance packages. Through this process, it is possible to recapture substantial value from properties with high or inherent concerns by managing residual risk. The full demonstration of CDC's expertise is its ability to reclaim value from mixed portfolios and "upside down" properties possessing limited real estate values.

Asset Evaluation
CDC's asset evaluation process addresses all aspects of the proposed transaction, including real estate attributes, environmental conditions of the property, development or redevelopment potential, and future exit strategies. CDC has continually refined its evaluation capabilities and is positioned intellectually and financially to pursue multiple transactions quickly and cost effectively.

Risk Management
As it pertains to environmentally impaired properties, effective management of environmental risk is essential. CDC evaluates the property conditions, the potential transaction structure, and the liability concerns of both itself and the seller. Risk management factors include the selection of remedy, regulatory requirements, legal structure, insurance, indemnification through use of bonds, guarantees, escrows and other tools which control and limit seller and buyer liabilities.

This innovative and proven approach to risk management has effectively limited risk to highly risk adverse corporate land owners nationwide.

Preferred Economic Considerations
It is CDC’s preferred methodology to purchase properties in their “AS IS, WHERE IS, WITH ALL FAULTS” condition, and to provide environmental indemnification for the seller effective at closing.

CDC utilizes a derivative of the Rasher-Colangelo formula when assessing the intrinsic or baseline value of an environmentally impacted property.

BMV = (CMV) – (IC + EL + OL + R + K) Where BMV = Brownfield Market Value CMV = Clean Market Value (Value derived using traditional real estate market appraisal techniques – assuming no environmental liabilities and highest and best use). IC = Investigative Costs (Phase I & II implementation, study & analysis). EL = Environmental Liabilities (The cost to cure, or clean up the property and reduction in value, if any, due to stigma). OL = Other Liabilities (Legal fees, brokerage commissions, cost of carry, deferred maintenance issues etc.). R = Repositioning Costs (Expenses related to achieving highest and best use such as rezoning, demolition, permits, consulting studies, appraisals and non environmental legal services). K = Rate of Return & Projected Risk (Normal anticipated rate of return on an investment plus a risk premium that rewards higher project exposure).