Cordes & Company

Receivership involving a commercial condo master lease

A significant mixed use project located in downtown Scottsdale, Arizona includes retail, office and residential space.  When the developer of a 11,000-square-foot commercial condo building within the project defaulted on its loan, Cordes & Company was named by the court as receiver.  The developer established a separate entity and instituted an oral master lease agreement that allowed this separate entity to manage and lease the individual offices and virtual offices and collect rents.  We assumed responsibility for the building and hired a new property manager to maintain the property, collect rents and increase revenues.  Upon our appointment, the developer declared bankruptcy and tried to manipulate the tenants into paying rent to the master lease holder, which was not a party to the court order.  By maintaining possession throughout the bankruptcy dismissal, we were able to maintain control, lease additional units, and ultimately increase revenues.  One particularly thorny issue was disposition of the developer’s and lease holder’s personal property.

Colorado
7979 E. Tufts Avenue
Suite 820
Denver, CO 80237
Telephone: 303.721.8755
Minnesota
2677 N. Innsbruck Drive
Suite A
New Brighton, MN 55112
Telephone: 612.455.0985
California
2030 Main Street
Suite 1300
Irvine, CA 92614
Telephone: 949.379.1202
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