Texas Real Estate Receiverships
Published on July 22, 2024
Stapleton Group is serving as receiver for diverse real estate-oriented businesses throughout the western and southwestern U.S. Our Texas office is experiencing particularly strong demand. Here are some of our current Real Estate Receivership engagements:
6 Downtown Office Buildings
The owner of six large office buildings in the Central Business District of Midland, TX stipulated to the appointment of a receivership. Stapleton Group was selected to take control of the portfolio as Receiver and lead the sale of the leveraged buildings.
As Receiver, we successfully took over operations, deployed a new management team, completed on-going deferred repairs and maintenance, and launched a successful leasing campaign. We hired listing agents and currently are working with them and the Special Servicer to effectuate a creative recovery strategy, which will involve the assignment of outstanding loans secured by the buildings.
$190MM, 40,000+ Acres of Timberland
After years of complicated, contentious trust-related litigation involving a family partnership and a large institutional trustee, the judge appointed Stapleton Group as Receiver of the business. Assets included a large timber operation with over 40,000 acres of land.
As Receiver, we managed operations and cash flow of the 40,000+ acres of timberland for two years and retained a best-in-class agent to market the timberland for sale. The property sold for $172MM in an all-cash transaction, exceeding the owner’s expectations by 50%. To close the sale, we navigated complicated titling issues resulting from the extensive historical litigation. We currently are managing the pending all-cash sale of additional real property for over $20MM.
40-Unit Apartment Project + Land
The owner of a 40-unit, class C, apartment building in Copperas, TX and land in Temple, TX had defaulted on its secured loan by mismanaging the properties. The apartment building had become severely dilapidated with environmental problems and squatting tenants.
As Receiver, Stapleton is evicting certain tenants, eradicating pests throughout the apartment complex, launching an aggressive leasing campaign, conducting a forensic review of cash activity, and searching for other assets for the estate.
29 Residential & Commercial Development Properties
A distressed real estate development company in Austin, TX with approximately 30 development projects in Texas, Washington and Colorado collapsed due to litigation and bank foreclosures. Assets include infill single- and multi-family properties under construction. Stapleton was appointed Receiver by the Texas State Court.
As Receiver, we unraveled complicated capital structures involving multiple lenders, hundreds of individual and small family office investors, and institutional investors. We currently are completing construction of homes on behalf of lenders; marketing for sale projects at various stages of development; verifying claims to the estate; protecting the estate’s interest in various joint ventures; and, supporting information requests from 8 regulatory or enforcement agency representatives, including the SEC, the FBI, the Texas Comptroller of Public Accounts, the Texas State Securities Board, and the IRS, among others.
For more information about our Stalled Construction and other Real Estate Solutions, contact:
David Kieffer
dkieffer@stapletoninc.com
213-235-0602