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Location: Murrieta, California
Size: 20 acres
Date Purchased: Purchased August, 2000
Purchase Price: $645,000
Date Sold: January, 2003
Sales Price: $2,725,000
Strategy: Fenway Properties recognized the growing demand for housing in Murrieta and acquired a 20-acres piece of land in a prime location for a development of 55 lots for single-family homes and a community park within the neighborhood.
Challenge: Battery recycling operations performed on the site by the Oakley Battery Plant between 1955 and 1960 left the parcel registered as an E.P.A. Toxic site . More than 9,000 cubic yards of lead- contaminated soil needed to be removed from the site and replaced with new soil in a manner that protected public health and the environment.
Solution: Fenway Properties worked with the City of Murrieta and the Department of Toxic Substances Control (DTSC) to investigate, develop plans and implement the site cleanup in record time (less than 8 months). After each round of excavation, the soil was tested with an X-ray fluorescent instrument to ensure safety. The cleanup project included safely removing 5,000 tons of lead-contaminated soil, transporting it to a hazardous waste landfill and replacing it with clean soil.
The cost of the cleanup was $900,000 and included a $700,000 “CLEAN” loan, the first successful completion of the State of California’s Cleanup Loans and Environmental Assistance to Neighborhoods (CLEAN) program demonstrating that economic development and protecting public health can be achieved in tandem. DTSC’s certification of the cleanup activities meant that the entire site was approved for unrestricted future land use and posed no risk to public health or the environment.
Results: The site was sold with a final map for 55 lots for $2,725,000 in January 2003 with entitlement and carry costs exclusive of loan at $400,000 and investor return of ± 50% per year.
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