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A Dorson Environmental Newsletter


The Impact of UST Presence on the Value and Liquidity of a Property

The Impact of UST Presence on the Value and Liquidity of a Property Experience gained by Dorson engineers, supported by considerable documentation in the open literature, has shown that the presence of underground storage tanks (UST) on commercial and residential properties can, and usually does, adversely impact the value of the property, and can delay or complicate sale or development and their attendant financial transactions. The situation is particularly aggravated if the tanks are leaking (LUST).

UST's can be found in many sites including gas stations, manufacturing plants, residences and former government properties and a significant percentage of these have some degree of leakage to the surrounding environment. Although opinion varies considerably, recent EPA estimates are that as many as 25% of UST's in place today leak. LUST's are a major cause of brownfield problems which not only effect the subject property but can extend beyond it to adjacent properties.  The impact of UST presence, or Leaking UST's, on the value and liquidity of a property may be realized in one or more ways:

- Reduced chances of selling
- Sale or development may have to be abandoned
- Realization of a lower price
- Delays in completing a transaction or a development project
- Difficulty in obtaining a mortgage, or development financing
- Higher financing rates
- Lower loan-to-value ratio
- Potential owner or lender liability for impact on nearby properties

Whether you are involved in the sale of a property, considering a purchase, planning to develop a property, or a lending organization, the existence and condition of UST's must be determined. Not only UST's on the site must be identified and characterized, but also the potential for UST's and LUST's on adjacent properties must be assessed.

Dorson Environmental Management has the skills and experience to fully evaluate a site for the presence of UST's and determine their condition, as well as assess adjacent properties for their impact on the value of your site. Contact your Dorson representative

  • for additional information on any aspect of environmental audits, site remediation, or a
  • bibliography of literature references on UST impact on property value and liquidity.

Visit their website at: http://www.DORSON.com


 
   

submitted by:

Dorson Environmental
E-Mail: dorson@westnet.com
 
45 Knollwood Road, Elmsford, NY 10523
Tel: (914) 592-3117
Fax (914) 592-4051
 
One Gateway Center, Suite 2000, Newark, NJ 07102
Tel (973) 645-9478
Fax (914) 592-4051
 
 
       

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