Cordes & Company

Unsavory tenants complicate receivership

When the owners of a three-tenant warehouse in downtown Los Angeles defaulted on their loan, the court appointed Cordes & Company as receiver.  The owners initiated bankruptcy proceedings, which required us to temporarily stand down until the bankruptcy was dismissed.  Following the dismissal, we discovered that the owner had leased a vacant unit to a tenant that was operating a 4,000-square-foot marijuana grow-house on the premises.  The tenants had installed significant improvements, including lights, ventilation and hydroponics, as well as a sophisticated security system on the roof.  Authorities were notified, but there was confusion over state versus federal jurisdiction.  Local police seemed uninterested.  We met with the tenants and the property owners to discuss the lease and notify the tenants to vacate.  We began the unlawful detainer process.  Before any action could be taken, the tenants evacuated the premises and moved elsewhere.  After this initial excitement, our receivership proceeded routinely.

Colorado
5299 DTC Boulevard
Suite 600
Greenwood Village, CO 80111
Telephone: 303.721.8755
Minnesota
2677 N. Innsbruck Drive
Suite A
New Brighton, MN 55112
Telephone: 612.455.6027
California
2030 Main Street
Suite 1600
Irvine, CA 92614
Telephone: 949.379.1202
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