Part 4
By Adrian Evarkiou, Sierra Consulting Group, LLC
The best outcome for all is that the receiver creates more value for the asset. Acting as a neutral 3rd party by keeping all stakeholders involved with minimum write downs. The debtor can continue on as the owner of the building because the asset’s value is back up to the loan amount and is able to generate the income needed to keep paying the bank. Other solutions can come in the form of finding a new use for the building, filling it with new tenants, utilizing the relationships of the receiver for the good of the building.
In one recent case Sierra handled an empty 45,000sf retail building in Avondale. At the point we took over, six tenants had moved out over the last year. Sierra was able to bring in a church to purchase the building, bank financed the deal. Both parties were extremely happy and at the end of the day the church paid more than the value of an empty retail building, but they were able to fill a need without having to build a building. They now have an asset, and due to their stability, their people have increased and so have their donations. These are the stories that you rarely hear regarding receivers.
For more information on receiverships and the services that professionals at Sierra Consulting Group can provide, do not hesitate to contact us at 602-424-7001 and visit our blog for future postings.
Sierra Consulting Group has been a leader in the turnaround, receivership and consulting services industry since 1981. Sierra is comprised of a group of extremely talented and experienced turnaround, real estate, accounting and finance professionals. We advise lenders, debtors, attorneys, owners and investors in a wide variety of transactions.
