TUSTIN, CALIF. (Feb. 26, 2013) – Under the direction of State Court Receiver and Coreland Companies Principal Pat Galentine, three complex receivership assignments were sold in the past eight months, including two direct sales by Galentine in his capacity as Receiver. The three assets garnered in excess of $120 million.
“All three of these properties were complex assignments that demanded an extraordinary amount of effort from the receivership parties, including loan servicers, buyers, and the property management and sales teams,” said Galentine, who possesses 20 years of experience in the receivership and management of troubled assets through rents and profits receiverships.
“While the sale of receivership properties are rare, they can be done in today’s market with a strong team working efficiently through a complicated process. A receivership sale is a best-case scenario in the right circumstance because it maximizes value, reduces costs, and provides an exit strategy in an unstable environment.”
The three California properties included a 75,785-square-foot retail/office mixed-use property in Mammoth, a 256,000-square-foot retail center in Northridge, and a 239,849-square-foot office building in Torrance.
Sierra Center
This 75,785-square-foot, three-level retail/office center was assigned to Galentine in 2010. The high-profile property located on Old Mammoth Road suffered from significant neglect. Under Galentine’s appointment, the building undertook a deferred maintenance improvement program, professional services were established, a major county lease termination was resolved, and a professional leasing team was put in place. Galentine subsequently identified a buyer and negotiated sale terms, including a loan modification and assumption. The property sold for $9 million and closed escrow in second quarter 2012.
Tampa Plaza
Galentine was appointed receiver of this 249,745-square-foot neighborhood retail center in 2009. Under redevelopment at the time, Galentine coordinated the settlement of approximately 20 lawsuits, and negotiated the resolution and funding to release over 100 construction liens. In addition, Galentine managed the final phases of the $15 million renovation, including entitlements, analysis, funding documentation, and $7.5 million in landlord, tenant and site construction. A number of national tenant lease modifications were negotiated and the property was stabilized. As a result, the borrower was able to complete a loan modification and sale. The property closed escrow in third quarter 2012 for $85 million while in receivership.
Hamilton Place
Galentine was appointed receiver on this 239,849-square-foot, mid-rise South Bay office building in 2011. After transitioning management and leasing services, he coordinated the sale of this property, which was located on a Superfund site. The property sold for $34 million and closed escrow in third quarter 2012.
Coreland Companies provided various property management, brokerage and construction management services on each of these properties.
“Our past experience with distressed assets, combined with our ability to offer in-house management and leasing services as needed, allows us to successfully navigate complex assignments,” said Chris Hite, co-founder and president of Coreland Companies. “I believe that our clients appreciate the efficiencies we offer. We work hard to customize a strategy that best suits each asset and generates measurable results.”