The Bottom Line:
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.
The nearly-completed school, which was outfitted with desks, technology and other FF&E, had been built by a charter school operator whose charter got pulled four months before the opening date.
Our key actions resulting in the successful recovery for the property’s secured lender included:
- Took possession of the nearly-completed property, comprising classrooms, administrative offices and an auditorium.
- Inventoried the campus and established possession of school related property, including all necessary classroom and administrative technology.
- Obtained financing advances from the lender to complete construction by providing a construction budget and operational forecast.
- Managed all aspects of completing construction and obtaining a certificate of occupancy.
- Actively marketed the property to charter school buyers. Ultimately, the local school district elected to submit the highest and best offer to purchase the property.
- Successfully navigated the process to gain court approval to sell the campus for $20 million to the local district.
- Maintained the property in sale condition throughout the 2-year marketing process.
- The school had been financed with a bond. Worked with the trustee and bondholder throughout the process.