Receivership Services

Faced with the collapse in commercial real estate values and with literally billions of dollars in commercial real estate loans set to come due over the next few years, special servicers and banks continue to struggle with bad loans in their portfolios. Increasingly, financial institutions and special servicers are using receivers, appointed by the courts or privately appointed and charged with fiduciary responsibility, to oversee day-to-day management of a property or business with a defaulting loan. For many lenders, opting to appoint a receiver to operate and, ultimately, sell a property can save considerable time and effort to maximize recoveries.

Alvarez & Marsal provides receivership support to creditors and owners of distressed assets engaged in foreclosure or complex restructuring situations. Our receivership services are focused on those states in which "relationships" will add the most incremental value - states with the greatest challenges to an efficient foreclosure. Our experienced, court approved receivers offer a one-source, integrated workout solution that enables lender groups, bondholders and other investors to swiftly execute on optimal resolutions for real estate assets, mitigating any further deterioration, maximizing the property's physical health and increasing economic recoveries.

Our Receivership Services professionals are a multi-disciplinary team with hands-on experience in loan workouts, principal investing in the U.S. and internationally, real estate lending, construction, development, loan sales and recapitalizations, and investment management for large scale transactions. From construction, development and asset management to restructuring and refinancing, A&M has an unparalleled understanding of the real estate lifecycle.

For creditors who have lost confidence in borrowers or prefer control to be placed in the hands of a third-party, A&M brings years of proven, proactive receivership, property management, construction, leasing, development and asset disposition skills across all commercial property types. As receivers, we are integrally involved in all aspects of construction completion and negotiating discounted settlements with contractors, as well as proactively managing on-going performance of property operations, rent collections and leasing to ensure that each property achieves its full value potential.

Our Receivership Services include:

Evaluate assets, situational and market analyses, and due diligence
Conduct strategic discussions with creditor, counsel and others
Develop strategic options based on short- and long-term objectives
Develop Operating and Capital Budget and funding approval protocols
Implement asset strategies to maximize value on net present value (NPV) basis in compliance with fiduciary standards and court orders
Recruit and supervise third-party professionals
Proactively oversee leasing, construction, operations, purchasing activities, vendor rebidding and insurance programs
Prepare monthly reports, cash flow projections, and ensure meaningful and timely communication and approvals
Complete real estate tax analyses, and address liens and other delinquencies
Preserve the value of assets, mitigate risk and control cash flow

Related information

Receivership Services Fact Sheet

KEY CONTACTS:

Klaus Kretschmann
Managing Director
Phone: +1 212.763.9720
Email | Profile

Alvarez & Marsal