Lake Pleasant Heights Peoria, AZ
Court
Maricopa County Superior Court
Scope of Work
Appointed as Receiver on a $10.5MM loan for 792 acres of a larger 3,200 acre Master Planned Community development called Lake Pleasant Heights in Peoria, AZ. This underlying debt obligation was a complicated loan structure where the loan was originally made to a hard money lender who then defaulted to a failed bank that was then sold to another acquiring bank and finally the ultimate borrower of the hard money lender was in default on his payment. Resolute was appointed as a Receiver to take charge of the property and control the defiant borrower who was not responding to the Lender with an identifiable plan. Additionally, the Receiver was asked to steward the property through an ongoing entitlement process with neighboring land owner to protect the property’s interests and maximize value for an ultimate sale.
In Resolute’s role as a development specialist, we were able to immediately identify critical challenges to the property in terms of transportation infrastructure, a water solution and an overall cost sharing model that was equitable for the ambitions of the City while balancing the financial implications to the subject property. Repair of previously strained relationships were paramount to bring all parties back to the table and start discussions about moving the entitlement process forward. Resolute effectively managed the objectives and concerns of three private land owners, the City of Peoria, and the Arizona State Land Department to create a cohesive plan for the infrastructure of the overall development. Additionally, Resolute was able to return to course a development plan that had previous been derailed to maximize value that included a Specific Area Plan (SAP), a Planned Community Development (PCD) and finally a Development Agreement with both the neighboring land owners and City of Peoria.
Resolute conducted an extensive broker selection process to identify the best fit for the property and to carry out the objectives of the receivership estate.
Resolution
Resolute’s diligence with the property resulted in a full payoff of the loan for the Secured Lender.
Veranda at Ventana
Court
Pima County Superior Court; Tucson, AZ
Scope of Work
Receiver took possession of the real property called Veranda at Ventana, located at 5751 North Kolb Road, Tucson, Arizona 85750, due to maturity default and contentious relations between Lender and Borrower. The Property is a Class A broken condo conversion development located in the foothills of the Catalina Mountains in Tucson Arizona.
The collateral consisted of one hundred and thirteen (113) one and two bedrooms for rent apartments intertwined throughout the forty two (42) garden style buildings on the property with another two hundred and ninety five (295) units having already been sold to individual residents. Additionally, the Receiver was tasked with the operation, management and governance of Veranda at Ventana’s HOA that was responsible for the common grounds, clubhouse and pool of the entire property.
The Receiver working through the web of affiliated corporate entities of the Borrower was able to assess and retain the essential employees of the property. This provided for the seamless transfer of operations without interruption to the service and support for tenants and residents alike.
Resolution
Resolute was able to effectuate the Sale of the collateral and transfer ultimate control of the HOA to a willing and able Buyer. Working together with the Title Agency and the Receiver’s Counsel, the Receiver was able to shepard the sale through the Court and allow the ultimate transaction to meet all negotiated deadlines per the contract. The Property closed escrow and gross proceeds satisfying the outstanding loan obligation of the Plaintiff, the Receiver’s fees and that of our Counsel as well as other associated costs associated with the closing.
Gilbert Crossing Retail Center Gilbert, AZ
Court
Maricopa County Superior Court
Scope of Work
Appointed as Receiver on a $7.8MM loan for a 63,000 square foot power retail center in Gilbert, AZ. Resolute Commercial acted as both the Receiver and Property Manager for the asset.
Resolute served a 6-month appointment as a Receiver for the property to stabilize the financial position and occupancy of the asset. The default was prompted by a vacancy of the anchor tenant and its overall drag on the performance and perception of the entire Retail project in the submarket.
Resolute’s property management efforts resulted in the correction of obvious inconsistencies in existing leases, reduction of operational expenses, and major deferred maintenance issues related to roofs, parking lots and HVAC. Additionally, our proactive marketing efforts repositioned the property within the submarket and led to an overall increase in leasing activity/occupancy.
Upon our appointment the occupancy at the property was just under 45%, with the implementation of our comprehensive marketing strategy Resolute was able to cultivate a new lease for the vacant Anchor Space to a new 25,000 square-foot Fitness Tenant for a 7 year term. This new tenant and two others have breathed new life and vitality into the project and raised the overall occupancy to nearly 90%.
Resolution
Resolute successfully turned around a rapidly deteriorating retail asset and in a very challenging market by finding a new Big Box Tenant and adding life to otherwise generic retail center.
Palm Valley Office Park Goodyear, AZ
Court
Maricopa County Superior Court
Scope of Work
Appointed as a Receiver on a $15MM loan for a 85,000 square foot Class A office building in Goodyear, AZ. Resolute acted as both the Receiver and Property Manager for the asset.
During the 6 month appointment Resolute quickly asserted control to correct obvious deficiencies with the management and operation of the property. Resolute’s relationship based management style assured current tenants about the provision of a consistent level of service and the positive path for the property moving forward. Our team quickly worked to address delinquent balances, outstanding maintenance issues and provide strategic direction to leasing team. The direct result of these actions was the stabilization of what was a rapid decreasing rent roll and presentation of 6 new leases for an overall increase of 25% in occupancy.
Resolution
Resolute successfully stabilized the operation and rent roll for this highly neglected property. Superior leasing results were achieved through the articulation of a leasing plan to strategic selected brokerage firm whose focus was on this particular geography.
Holiday Inn Express – Florence, AZ
Courts
Maricopa County Superior Court
United States Bankruptcy Court – District of Arizona
Scope of Work
Resolute was initially appointed as Receiver for an underperforming Hotel in Florence, Arizona. Upon our appointment, our Team immediately started to implement processes and systems to improve operations, marketing and financial performance.
Shortly into our engagement, Borrower filed for bankruptcy and Resolute was retained to monitor operations, cash collateral, and perform feasibility analysis of the Borrower’s restructuring plan.
Based upon Resolute’s testimony at the Plan Confirmation Hearing, the plan was denied and a relief from stay was granted. Resolute regained control of the property under the Receivership Estate as well as post foreclosure. During the time of our direct control, all financial performance categories of the property increased dramatically. Occupancy went from 30% to 70%, ADR improved by nearly $20, and overall revenue increased nearly 30% year over year.
Resolution
Issues identified and solved at the property were:
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Flag standards and compliance
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Certificate of Occupancy
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Deferred Maintenance
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Health Department standards (i.e. pool, ice machines, etc.)
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Marketing perception within the marketplace
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Revenue management
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Expense management
Oro Valley Inn & Suites Oro Valley, AZ
Court
Pima County Superior Court
Scope of Work
Appointed as Receiver on a $10.0MM loan for a 104 room limited service hotel located in Oro Valley, AZ outside of Tucson. The property had recently lost its flag as a Wyndham Garden and its performance was suffering dramatically. The property is located immediately across the street from one of the largest employers in the area, but was unable to get traction without a loyalty program to attract corporate travel nights. The Lender appointed Resolute to assume control of the property from absentee out of state borrowers, stabilize the asset and identify best possible outcomes to maximize the sale of the property.
Resolute’s role at the property provided immediate direction to the existing staff, reestablished a marketing presence with the local community and sought a new flag under which to brand the property. Resolute identified the Holiday Inn Express brand as the most viable option for the existing bones of the property, availability in the overall market and most efficient deployment of capital. Our team was then asked to develop a Property Improvement Plan (PIP) to gain this flag. Through the execution of this plan, the property was reflagged which will dramatically increase RevPAR and occupancy.
Resolution
Resolute’s diligence with the property resulted in a full payoff of the loan for the Secured Lender.
The Mix Shops
Court
Maricopa County Superior Court
Scope of Work
Appointed as Receiver on a $11.5MM loan for a 23,000 square foot mixed use retail center in Scottsdale, AZ. Resolute Commercial acted as the Receiver, Property Manager, and disposition agent for the asset.
Resolute Commercial Services was appointed to be the receiver for 30 months on this underperforming and highly dysfunctional retail component to an otherwise successful mixed use development. The default was triggered by a flawed business concept to assemble local boutique tenants organized in a communal setting to resemble a free flowing market environment. The combination of charging the highest dollar per square foot rents in the trade area and the unsophisticated nature of the individual operators doomed this property for failure.
The asset was riddled with issues that needed to be addressed related to its original sale and its connection to the larger Community Association. Paramount to this was a discrepancy in declared size of the space that was able to be physically occupied compared to what the Lender believed they had as collateral. The ramifications of this were profound as it affected taxes, leaseable area, community association fees, CAM charges, etc. Furthermore, the layout of the space without demising walls added an additional element of complexity.
Results
Resolute successfully procured a buyer that was willing to purchase the property “as-is, where-is” with all of its faults for a premium.
Caliente Springs Self Storage and RV
Court
Riverside County Superior Court, California
Scope of Work
Appointed as Receiver on an $8+ million loan for an 89,000 square feet property containing some 635 ministorage rental units, 250 covered and uncovered RV/boat/auto rental spaces, and 30 tractor trailer rental parking spaces.
Resolute Commercial was appointed as the Receiver and Property Manager for the asset and businesses conducted at the property.
The loan default was triggered by a shortage of cash resulting from an absentee owner that experienced employee embezzlement enabled by the lack of adequate internal accounting and administrative controls and management oversight.
Resolute found the property to have fallen into disrepair with several matters adversely affecting health and safety, the business operations out of compliance with federal and state laws, and facing utility shut offs and loss of other services through nonpayment of bills.
Results
Resolute quickly stabilized the property and operations, repatriated funds that had been misdirected to outside accounts, addressed staffing, safety, security, and deferred maintenance issues, brought the operations into legal compliance, brought all payables current, developed and instituted sales and marketing programs, and energized the income sheet with the addition of a Swap Meet on the weekend to drive both storage and ancillary revenue. All told Resolute’s efforts improved occupancy, revenues, and cash flow, bringing the operation into profitability. Lender did not come out of pocket at any time for any amount as Resolute’s combination of astute cash management, increasing the revenues and managing the costs, permitted cash flow to finance all repairs, compliance costs, and ongoing operating expenses.
Interim Management - Fuel Distributor
Court
Superior Courts of Navajo and Apache Counties, Arizona
Scope of Work
Appointed as Receiver for multi-location commercial fuel distributorship. Associated properties were located in Show Low and Springerville, Arizona. Resolute acted as Receiver to provide interim management, financial and operational analyses, environmental clean-up and support for the sale process.
Resolute was appointed at the request of the bank for two different receivership actions that occurred concurrently in different counties for the same borrower due to a loan default. Resolute was chosen because of their extensive fuel distributorship experience. Upon takeover, Resolute performed financial analysis which conclusively determined that the best course of action was a sale of the business as a whole. At present Resolute is working with four potential buyers.
Resolution
Resolute has stabilized operations such that they can be supported by current cash flow. Additionally, Resolute is addressing legacy environmental issues and has cultivated the interest of four potential buyers for the business.
Operational Carwash and Convenience Store
Court
Superior Court of Mohave County, Arizona
Scope of Work
Appointed as Receiver for full-service car wash and convenience store in Fort Mohave, Arizona. Resolute acted as Receiver to oversee management, cash controls, and brokerage.
Borrower defaulted on a bank loan and Resolute was appointed Receiver because of its experience and expertise in the industry; Receiver evaluated several economic alternatives and determined that a sale of the operating business, together with its special purpose property and equipment, would bring maximum value to all parties; accordingly, the Receiver instituted a cash collateral oversight plan to protect assets and assist in managing the business while it was being marketed.
Resolution
Within four months of being appointed as Receiver, the business was sold with the consent of all parties.
Dental Practice
Court
Superior Court of Maricopa County, Arizona
Scope of Work
Appointed as Receiver for dismantled dental practice in Mesa, Arizona. Resolute acted as Receiver to reconstitute and operate dental practice.
Resolute was appointed Receiver at the request of the bank due to the default of the borrower on a loan secured by real estate and the dental practice. Upon takeover, the dental practice was found to be shut down and the premises completely stripped of records, dental equipment and FF&E. Within thirty days, Resolute recovered the patient records and equipment, reconstituted the physical office and the practice was reopened for business. At present the practice has enjoyed six months of successful operation and stability and quality care have been restored for patients.
Resolution
Resolute is directing the sale of the practice and associated real estate via the Receivership Estate.
Bankruptcy Consultant - Limited Hotel Service Operator
Court
United States District Court – Arizona
Scope of Work
Retained as pre-bankruptcy consultant to analyze operations and financial performance prior to filing for Chapter 11 bankruptcy protection for five-property, multi-state, limited service hotel operator. Properties include:
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Best Western in Wyoming – 60 Rooms
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Best Western in Arizona – 85 Rooms
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La Quinta Inn and Suites in Colorado – 64 Rooms
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Super 8 Hotel in Wyoming – 48 Rooms
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Quality Inn in Wyoming – 131 Rooms
Resolute was also hired to provide expert witness testimony in support of borrower's plan for reorganization. Testimony is expected with regard to competency of operator to manage the business, reasonableness of cash collateral agreement and feasibility of the plan of reorganization.
Resolution
Resolute is currently engaged in the process.
Franchise Agreement Compliance
Client
Cellairis Corporation
Scope of Work
Franchisor was unsuccessful in resolving an issue regarding the sale of unlicensed products by a Franchisee in violation of the Franchise Agreement.
Resolute was hired to simultaneously shutdown and secure all inventory, FF&E and business signage for seven sales outlets located in five different regional malls throughout the State of Arizona.
Resolution
Resolute developed and successfully executed a plan to remove and secure inventory as well as shut down operations at the seven unauthorized sales locations within a 12-hour window.
Crossroads at Tolleson
Court
Maricopa County Superior Court
Scope of Work
Appointed as Receiver on a $35MM loan for an 110,000 square foot power retail center in Tolleson, AZ. Resolute Commercial acted as both the Receiver and Property Manager for the asset.
During an 8-month appointment, Resolute quickly stabilized the financial position of the asset and worked to reassure restless tenants about the future path of the property. Resolute’s property management of the asset resulted in the correction of existing lease deficiencies, reduction of operating expenses and elimination of graffiti and vandalism. Additionally, our proactive marketing efforts repositioned the property within the submarket and led to an overall increase in leasing activity and occupancy.
Resolution
Resolute successfully stabilized and positioned the asset for the Lender to transition onto its balance sheet.
“C” Class Multifamily
Court
Maricopa Country Superior Court
Scope of Work
In calendar year 2009 Resolute was appointed as the Receiver and Property Manager on 15 matters involving multifamily communities totaling more than 1,200 apartment units. In most cases, the properties were horribly neglected in both a physical and operational capacity. Additionally, the tenant mix was precarious due to cultural differences or immigration status.
Resolute’s bilingual and solution-orientated staff worked diligently to overcome the previous ills from the mismanagement of the properties. Conscious efforts were made to immediately address outstanding life safety issues, physical deterioration, unsavory tenant mix and overall rent readiness. In many cases these actions were accomplished through the use of existing cash flow and without the need for additional funding from the Lender.
Resolution
Resolute was instrumental in breathing new life into otherwise tired multifamily assets. Results were achieved by improving the overall occupancy while stabilizing rent rolls and expenses. Resolute also facilitated the disposition of many of these assets either through a Fee Simple Sale or Sale of the Note and Deed of Trust.
Carwash of America
Court
Superior Court of the State of California
Project
Mr. Mitchell controlled three full service car wash/gas stations/convenience stores and a Jiffy Lube from a national acquisition and consolidation company.
Scope of Work
As the agent for the Receiver, Mr. Mitchell performed interim management, operational oversight, and the coordination of the sale of the properties with the marketing staff of the Receiver.
Upon taking control of the assets, a comprehensive review of the operation’s plant and equipment was conducted. Capital control measures were implemented and in-depth negotiations for settling debts owed to key suppliers, vendors and employees for pre-receivership operations were accomplished.
Resolution
Once the operations were stabilized and the environmental issues were resolved, the properties were sold on a date certain bid format for $8MM.
USA vs. Edmundo Rubi, Knights Express DJMLER Enterprise
Court
United States District Court Southern California
Project
An international investigation of a pyramid scheme involving approximately $24 MM and 475 individual investors.
Scope of Work
Mr. Mitchell and his team conducted a comprehensive forensic investigation to trace investor’s funds to multiple off-shore accounts. Funds were used to purchase homes, cars and other assets purchased for personal use by the defendants of the court action. Numerous bank account and financial records were gathered from investors and the company’s files in order to recreate a complete statement of the sources and uses of investor funds.
The complex nature of the project dictated coordination with several U.S. and foreign agencies that included the filing of various legal actions is the Philippines and the Isle of Guernsey. The defendant in the case was ultimately arrested overseas and repatriated to the United States to face trial.
Resolution
After completing the forensic investigation, the collected funds were distributed to back to investors.
Bankruptcy Portfolio
Client
Harry R. Eberlin - Debtor in Possession
Project
A 92 property portfolio in bankruptcy consisting of a corporate headquarters, 3 warehouse distribution facilities, 2 retail strip malls and 86 free standing automotive parts store located in 27 states.
Scope of Work
Hired as an agent by the debtor in possession and approved by the United States Bankruptcy Court to conduct disposition of the Super Shops portfolio. Mr. Mitchell completed portfolio due diligence, marketing position and pricing. Coordination of all aspects of selling real estate under the bankruptcy process and dissemination of information to both secured and unsecured creditors.
Resolution
Completed the valuation and sale of the portfolio via individual assets sales with a total consideration in excess of $52 million resulting in all secured creditors receiving full payment of claims.
HSBC vs. UFC Seafood and Food Company
Court
Superior Court of California - Los Angeles
Project
Three Asian food importer and distributor located in Los Angeles and Orange County, California.
Scope of Work
Mr. Mitchell and his team took possession of four distribution warehouses and prepared an inventory of all assets. Upon the systematic abandonment of all company employees, Mr. Mitchell and his team ceased operations and proceeded with a systematic liquidation of the assets . During the following eleven-month period they negotiated more than 100 separate sales transactions of more than $2million in perishable and nonperishable seafood, dry goods, personal and real property.
Upon the forensic review of the companies books and records, it quickly became apparent that virtually all receivables were from a fraudulent sales program between related companies.
Mr. Mitchell then facilitated the turnover of all documents captured on site to the F.B.I. and I.R.S. Criminal Investigations.
Resolution
All assets of the companies were liquidated and various principals were ultimately prosecuted by the Federal Government.
Westin Hotels Portfolio Sale
Brokerage
Jeremiah Foster
Buyer
NCH/Transwest Properties LLC
Seller
Starwood Capital Group
Sales Price
$310,000,000
Closing Date
December, 2007
Scope of Work
A.) The Westin La Paloma Resort and Spa in Tucson, Arizona is 487 guestroom destination resort hotel. Amenities include a 27 hole Jack Nicklaus golf course, the exclusive Red Door Spa, five unique pools, 64,000 square feet of meeting space, tennis facilities, and the children’s lounge.
B.) The Westin in Hilton Head, South Carolina is a 412 guestroom ocean front destination resort hotel. This resort is located on the beautiful Port Royal Plantation. Amenities include three signature Port Royal golf courses, the full service Heavenly Spa, three unique pools, 16 meeting spaces, tennis club, and unique experiences for children.
Results
Mr. Foster negotiated the sale and successful closing of the portfolio to his buyer while competing against buyers such as Host Marriot and Mass Mutual.
