Real Estate Receiver
Mr. Darren Petersen is a Business Professional
With over twenty-three (23) years of multidimensional experience and is available for court-appointed Receivership services throughout Nevada. Mr. Darren Petersen specializes in Rents and Profits (Property Management) Receiverships, Build-out Receiverships and Land Entitlement Receiverships.
Real Estate Receiverships:
- Rents and Profits (Property Management): This is the most common application of a Receivership and the most broadly used. The appointment of a Rents and Profits Receiver typically occurs when a real estate project (commercial or residential) goes into default on its mortgage. The lender moves for the appointment of a Receiver to protect its cash collateral while it commences foreclosure proceedings to take ownership of the property. The Receiver is charged with collecting rents and preserving and protecting the property until the foreclosure is accomplished at which point the Receiver typically releases custody of the property to the lender. Examples of rents and profits receiverships include (a) 351 California Street, (b) West LA Apartment Building and (c) West LA Strip Center.
- Build-out Receiverships: Typically, a lender moves to have a receiver appointed over a stalled construction site (either residential or commercial) to assess the project to determine if it can be completed (and at what cost) and then sold. Usually, the lender must put up new money (which is secured by a Receiver’s Certificate) to complete the project. To sell the individual units in state court, it is generally beneficial to have the cooperation of the Defendant (original builder). This accommodation is typically negotiated in exchange for some item of interest to the borrower such as a release of personal guarantees. Some state courts are split on the question of whether a State Court Judge has authority to convey title via court order to a third party. However, in the current downturn, this approach (selling in State Court) seems to have become the preferred solution. When dealing with condominiums, the issues become complex such as having the Receiver sign the papers required by the Department of Real Estate and establishing a homeowners’ association – entities that need to be properly noticed at the time of the Receiver’s Final Account and Report in order to foreclose any trailing liability. Examples of build-out receivership include (a) W-23 Condo Project, (b) Bellagio of Palmdale.
- Land Entitlement Receiverships: To dispose of raw land, the property’s value is generally enhanced by completion of the entitlement process and obtaining a temporary or final map. With a supporting Court order, the Receiver can work through the process and achieve a better result for the parties. Examples of land entitlement projects include: Antiock Development — Shea Homes and DMC Trust.
- Hospitality Receiverships: The operation of a hotel, resort or golf course is a category of Receivership that is a hybrid between an operating company and a real estate project. Here the emphasis is to provide acceptable levels of customer service to keep the property competitive while working through its foreclosure or sale. Examples of hospitality receiverships include: NIFI Golf course.
- Substandard Housing: This category of Receiver is typically brought about by a complaint by a housing authority (City, County or State) where the goal of the Receiver is to determine if a substandard housing project can be improved or should be shutdown. If improved, the Receiver will typically have to borrow money from a new through a Receiver’s Certificate (that may prime the first-place lender) to accomplish the required work. Normally, the Court will make the decision to proceed based upon the Receiver’s recommendation. These issues can be tricky as the initial bid to improve the property may expand as the full scope of the project becomes known only after the renovation is commenced. There are two cases, both in Santa Ana, involving the renovation of apartment complexes to address health and safety issues.