EnviroFinance Group, LLC

EnviroFinance Group, LLC (EFG), is a premier land reuse and redevelopment company with a track record for successfully remediating and repositioning environmentally challenged properties for productive reuse.

EnviroFinance Group, LLC (“EFG”), is a premier land reuse and redevelopment company with a track record for successfully remediating and repositioning environmentally challenged properties for productive reuse. EFG’s history dates to 2001 when the Company’s predecessor began making secured loans to fund the acquisition, remediation and redevelopment of Brownfields in California. In 2006, the Company’s predecessor formed EFG to expand its lending business nationwide. The Company was repositioned from lender to developer in 2011 to benefit from new commercial real estate opportunities created by the 2007 – 2010 recession.

Since 2012, the Company has actively recycled capital on realized investments into new projects. By effectively timing asset sales and purchases and utilizing public financing vehicles, EFG has gained control of 7 land reuse and redevelopment projects with total capital investments aggregating $159 million which are expected to produce annualized returns in excess of 30%. Revenues from these projects have totaled $45 million through June 30, 2014 with GAAP profits of $12.5 million which represents a 28% margin. The Company currently owns or controls 6 of the original 7 reuse and redevelopment projects with these remaining projects expected to generate gross sales revenues of $195 million from July, 2014 through 2019 against totals costs of $83 million. From these projects, $53 million (market value) is available for sale as of June 30, 2014 with $43 million (82%) under contract with, or with Letters of Intent in hand from, vertical developers.

EFG’s business model (Figure 1) is defined by the unique legal, regulatory, engineering, development and related complexities inherent in Brownfield redevelopment. By concentrating exclusively on Brownfields, EFG has created an organization and a culture which incorporates environmental considerations into every aspect of the redevelopment process. EFG’s in-house specialists in geology, geochemistry and environmental engineering are active team members in every aspect of each project from business development through construction and project exit. Integrating these disciplines into the overall project plan allows the Company to execute multiple processes simultaneously (e.g. clean-up, infrastructure installation, soils management and grading). This results in cost savings from the avoidance of duplicative work, as well as from timeline compression.

EFG’s knowledge and years of experience create a unique ability to manage and price environmental risk, resulting in superior risk-adjusted returns. EFG’s ability to obtain regulatory closure allows the Company to purchase properties at distressed prices, achieving cost and timeline efficiencies throughout the redevelopment process, and exiting at full market value. EFG targets project level, unlevered IRR’s in excess of 25% and has generally exceeded these thresholds by a wide margin. Due to capital constraints, EFG has historically invested in projects requiring less than $40 million in capital and not participated in vertical development, a significant opportunity and synergy. However, EFG’s corporate infrastructure has the ability to dramatically increase the project size, number of projects and scope of work.

Due to the Company’s relationships and track record of successfully achieving regulatory closure on its projects, EFG is often the preferred buyer of environmentally challenged properties.

EnviroFinance Group, LLC’s (EFG) projects span the United States, literally from Maine to Hawaii. Our projects address the remediation and abatement of hazardous materials resulting from a broad range of historical industrial uses including general manufacturing, refining, smelting, chemical manufacturing, power plants and steel mills, as well as more common commercial activities such as hospitals/medical uses, dry cleaning/commercial laundries and petroleum sites. EFG has managed the abatement of asbestos and regulated building materials in demolition of over 2 million square feet of commercial and industrial buildings, often in concert with building material recycling and reuse.