Fiduciary & Receivership Services
Maximizing the return on the debtor's estate or assets as Receiver, Trustee or Responsible Party
In our capacity as fiduciary, we leverage the range of our firms' resources to effectively and efficiently resolve the issues unique to each estate. All of our primary service lines can be brought to bear in an integrated and seamless fashion for the benefit of the estate. We are regularly appointed by the Court as Receiver, Trustee, Liquidating Agent, Plan Administrator or in some other fiduciary capacity. In other situations, we are often retained by a court-appointed trustee to execute specific tasks, such as liquidating real estate holdings, handling forensic accounting services or providing litigation support services.
Maximizing the Return
overriding goal, while acting independently for the parties involved on behalf
of the Court, is to marshal funds and develop and execute a strategic plan to
maximize the return on the debtor's or estate's assets. As fiduciary we are
often charged with:
- Assessing the value of assets
- Developing reorganization or liquidation plans
- Winding down business affairs
- Selling orphan assets
- Negotiating with claim holders, such as taxing authorities
- Investigating actions of prior management
- Monitoring long-standing litigation
- Pursuing litigation and causes of action
- Pursuing recovery activities and resolving claims
- Arranging for distributions
- Preparing financial reports and tax information for the estate
Our role as a fiduciary has always been a cornerstone of our business. We have sold unusual and difficult-to-liquidate assets such as pollution credits, collected on foreign receivables and disassembled plants for sale in Asia.
IN-DEPTH & NATIONAL EXPERIENCE WHEN IT COMES TO RECEIVERSHIP SERVICES
A receiver is a person or company appointed to act as a neutral third party to preserve, protect and if possible, enhance an entity's tangible and intangible assets when there is a dispute between parties. Receivers are commonly used for real estate which often is the collateral for a defaulted loan, however, receivers can also be appointed for operating businesses and in some cases both (i.e. hotels). We have been Receivers for a wide variety of real estate assets and businesses.The receiver can be appointed by a government regulator, a court or can be agreed to privately.
Once the receiver has been appointed, the receiver typically takes control of the underlying asset and steps into the proverbial shoes of the owner(s) as it relates to operating the asset(s). The receiver typically performs the necessary inspections to identify critical physical, environmental, legal and economic issues and liabilities. The receiver will determine the most appropriate management, leasing structure, accounting and reporting platform, and in some cases the disposition strategy to maximize collateral value.
Real Estate Receiverships
B. Riley has managed in excess of $5 billion of real estate; over 40,000 multifamily units nationwide; assets in 34 states; and in excess of 5 million square feet of retail, office, and industrial space.
Notable Receivership Relationships
BENEFITS OF OUR RECEIVERSHIP PRACTICE
- Broad experience as a receiver spanning a wide variety of asset classes including multifamily, senior housing, student housing, single-family portfolios, retail, office, industrial, hospitality, mixed-use, partially constructed development projects, mobile home parks, convenience stores, liquor stores, automotive, agricultural, timber, mining, and marine, amongst other asset classes.
- Ability to quickly gain control of an asset, related bank accounts, forensically audit financial statements, and assess the condition of the asset with the goal of maximizing recovery for the movant/lender.
- Operate a full-service asset management platform with the ability to provide property management services for certain assets.
- Fully licensed real estate brokerage firm - with access and relationships to other highly qualified leasing and investment sales brokers.
- Highly experienced construction management team whose capabilities include remedying code compliance and life safety issues, entitlement and design management, commercial tenant buildouts, mold remediation, renovations, demolition, complex system installations for occupied buildings and environmental work.
- Administrative back-office staffed by experienced CPAs that prepare monthly financial reporting, compliance reports, and in-depth analyses through our cloud-based Yardi Voyager platform.
- Offer a flexible and cost-effective fee structure with the ability to parachute into any situation with limited notice.
SITUATION ASSESSMENT & MANAGEMENT
- Analyzing and auditing rent rolls and identifying areas where rent collections can be increased.
- Reviewing operating statements and identifying where certain operating expenses can be managed in a more cost-efficient manner.
- Researching the status of property tax payments and casualty insurance policies and premiums.
- Analyzing current rental rate trends, vacancy rates, cap rates and absorption rates. Providing valuation opinions.
- Preparing timely, accurate and meaningful financial statements, budget to actual variance reports, cash flow forecasts and status reports.
- Conducting a comprehensive physical inspection of the property, providing an assessment of tenant base, property condition and the market.
- Reviewing rent collection procedures, modifying procedures, as needed, to assure the security and control of payments.
- Evaluating the performance of the current property management team, interviewing replacement candidates, as needed, and making recommendations to owners or lenders.
- Preparing and monitoring the performance of operating and capital expense budgets, as well as negotiation of vendor service agreements.
TENANT LEASE ADMINISTRATION
- Assess the strength of the leasing staff and third-party agents, provide guidance on new leases and renewals, review leasing proposals and negotiating terms on behalf of the movant/lender.
- Improving vacancy rates with leasing strategies that address market weaknesses and/or property weaknesses.
ASSIGNMENT FOR THE BENEFIT OF CREDITORS (ABC)
In cases where a client is considering an Assignment for the Benefit of Creditors (ABC) option, we are uniquely qualified to assess the viability of an ABC and execute the plan. We have been the assignee for both private and public companies and are well-known and respected as one of the top Assignees in the United States.