Pub. 3 2013 Issue 3

19 SUMMER 2013 and the existing tenants now happy, some of the former disgruntled tenants returned and the broker leased space to new tenants. In late 2011 the property was valued at $2,100,000 and one year later with the property more than 75% occupied it sold for $3,149,000. That’s how value is added! Z O KAY, YOUR CONVERSATIONS WITH THE BORROWER HAVE DETERIORATED SO YOU GET A RECEIVER APPOINTED FOR A struggling asset. Ahhh . . . relief is now in sight . . . rents will be collected . . . tenant issues will be resolved. But what about adding value to the receivership property? If you don’t have a plan to build value it will never happen. Expe- rienced, professional receivers can add significant value to properties. Con- sider one example. In late 2011 our company became the court-appointed receiver of a flex- industrial property in Mesa, Arizona. Prior to the receivership appointment these buildings had been vandalized for copper and HVAC parts, tagged with graffiti, there was evidence of termite infestation, the landscaping and exterior of the properties had deteriorated. In addition, more than half of the building was vacant spaces which were dirty and looked worn. Several disgruntled tenants had left, and brokers were no longer bringing prospective tenants to the prop- erty due to the condition. Within the first 30-days we put a plan in place and value was added when all of the condi- tion issues were resolved. We continued to build property value by interviewing several broker groups who specialize in this property type and who were active in this area of the Valley. After interviews were conducted, the best broker was chosen. With the property again looking great “If you don’t know where you’re going, you will never get there.” Adding Value to Receivership Properties Tim Hu ff , President of Case, Hu ff & Associates, has served as a court-appointed receiver throughout the State of Arizona more than 125 Ɵ mes in the past 25 years.