With the retail industry going through a lot of flux these days,many shopping centers have been, and continue to be, targets foracquisition, redevelopment or repositioning. Because manyshopping centers have had a dry-cleaner tenant on site at one pointor another, releases of perchloreoethylene (PCE) and othervolatile organic compounds (VOCs) are a common risk in thetransaction of such properties. The current or historic presence ofa dry-cleaner can create considerable risks and liabilities becauseof the high toxicity of the chemicals involved, stringent cleanupstandards for these contaminants, and the regulatory requirementsadopted by states around the country to address potential human health concerns.

Because of this, chlorinated solvents or former dry-cleaneroperations identified during the due diligence stage are seen as adeal-killer by many shopping center investors, lenders and theirattorneys - but they don't have to be! There are a number of thingsthat can be done to enable transaction parties to move ahead withthese potentially lucrative deals while adequately mitigating risksand liabilities.

First Things First – Be Duly Diligent