Published on April 29, 2021
The havoc wreaked by the pandemic on real estate combined with foreclosure moratoriums is causing lenders to carefully consider the feasibility of Receivership Sales. Our large, in-house team of specialists has closed 100% of Receivership Sales initiated, which is reason enough to consider the process for stressed commercial properties.
Here are our top 5 keys to successful Receivership Sales:
- Maximize Recovery: We follow the same extensive, competitive marketing process that happens on the open market, thereby maximizing recovery
- Efficiency: We are a one-stop solution when there are assets to be sold to effectuate recovery. We take control of the property; create and implement a strategy to optimize the lender’s return of capital; manage the operations of the property as a going concern, including tenants, leasing, maintenance and accounting; manage the sale process; and lead all court requirements.
- Title – Environmental Issues: Lender avoids stepping into the chain of title.
- Distribution of Proceeds: We structure the Court Order approving the sale to distribute proceeds directly to the lender via escrow, when feasible. We also can negotiate and pay off liens to prevent any additional lien-related issues.
- Court Approvals: We are experts at managing the court process and transactional nuances required to achieve successful court approval. The process runs smoothly since we ensure the title underwriting process and related court approval are in lockstep.
Check out these recently completed Receivership Sales:
Vacant Retail Building
As State Court Receiver of a vacant grocery store in Portland, Oregon during the COVID-19 pandemic, we improved the secured lender’s recovery by more than 100% by leasing the property and then selling it in a competitive process.
$20MM Vacant Primary School
As State Court Receiver of a new, unoccupied primary school in Southern California, we completed construction, obtained the certificate of occupancy, marketed the property, and maintained it for two years until its successful sale to the local school district for $20 million.
What are your thoughts on these ideas? Call or email to let me know.
David Kieffer, Managing Director