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Case Study: Receivership Assignment

The Challenge

C-III Capital ,which is one of the largest loan servicing companies in the U.S., called and requested The Estes Group submit a proposal to be the court-appointed receiver for a 42,000 square foot, multi-tenant shopping center in Madison, MS.  The 10-year financing term was expiring and the property suffered from both occupancy issues and deferred maintenance.  Therefore, the owners were unable to refinance the property and a court-appointed take-over was imminent.

The Strategy

Because the property had issues affecting the property’s operation and valuation, C-III Capital needed a company with experience in both court-appointed receiverships and shopping center investments.  The Estes Group, an AMO company , is an Accredited Management Organization, and their experience in dealing with these type projects would definitely be needed.  The Estes Group was awarded the assignment and worked with C-III and their attorneys to secure the appointment of receiver, which was completed on May 31, 2017.

The Result

The Estes Group, Inc. took over the property’s operation on May 31, 2017, and used it’s experience and skills to immediately protect the property’s cash flow and rental collections.  Also, after closing, the management team begin auditing the financial statements and found several expenses which could immediately be reduced such as real estate taxes and garbage collection.  The results were as follows:

The results of this assignment have been great for the client as they were able to retain the help of a very experienced and knowledgeable commercial real estate company that was instrumental in securing the asset. and improving the operations to add-value to the ultimate disposition of the asset.