Court Receiver Presentation


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Court Appointed Receiver and Asset Management Company, Nationwide

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Court Receiver Presentation

  2. 2. DISTRESSED PROPERTIES UNIT As one of the largest Federal and State Court Appointed Receivers for a combination of receivership and asset and property management firms in the United States, we have been appointed to over 400 cases, representing over 73 lending institutions. With over 19 years of courtroom experience, David M. Frank has implemented programs, services and procedures to assist lenders in protecting the security of their loans, namely increasing market value and generating higher revenue. Problem management issues, such as debt and creditor workouts, are one of the proprietary tasks of the Distressed Properties Unit. Since 1985, The Merrill Group of Companies, an affiliate of the receiver is a full service property management company with 160 offices affiliated nationwide has specifically managed, industrial, multi-family, hospitality, special purpose properties and millions of square feet of both retail and office space. The Companies Distressed Properties Unit consists of a Property Manager, Asset Manager, Assistant Property Manager, Construction Manager, and Maintenance Director. With our combined Team, we survey the property, perform interior and exterior inspections (determining the life, safety, and health conditions), leasing and area demographics, and any issues regarding the property. As a group, we develop a strategic plan for the operation of the property internally, and management commences immediately based upon our action plan that includes tenant interviews and evaluations, legal, vendors, insurance, accountings and proceed with acquiring the property’s books and records. Our Asset Management Department prepares a budget, expense and cash flow reports, and oversees the operation of the property. Our on-line paperless document system includes 24-hour access to monthly financial reports, leasing information, maintenance reports and is available 24 hours a day simply by going on line through our web site secured data room. DAVID M. FRANK NATIONWIDE COURT APPOINTED RECEIVER/TRUSTEE
  3. 3. DEPARTMENT OVERVIEW Court Appointment Develop Plan with Client Property Asset Inspection and Management Evaluation Property Tenant Maintenance DISTRESSED PROPERTY Interviews and Evaluation Accounting Legal and Department Collections Resolve Issues Legal Department ◊ Prepares Motions for Receivership and Final Accounting and serves all parties with the appropriate reports and pleadings. ◊ Takes possession of the asset and conducts audit pursuant to the order of the Court. ◊ Assists in debt work-outs and/or sells or manages assets in order to optimize proceeds. Asset Management ◊ Develops a customized management plan specifically for the asset. ◊ Performs tenant interviews and evaluations. ◊ Maintains detailed records, including monthly income and expense reports and complete receivables and payables tracking along with detailed check register information and monthly bank account reconciliation. DAVID M. FRANK NATIONWIDE COURT APPOINTED RECEIVER/TRUSTEE
  4. 4. DEPARTMENT OVERVIEW Property Maintenance ◊ Performs repairs and regular maintenance services to protect the value of the property. ◊ Prepares a Field Inspection Report of the property condition and health & safety issues. ◊ Performs property inspections at regularly scheduled intervals to assure the continued quality of the property, buildings and grounds. Leasing ◊ Meets with prospective tenants to evaluate their space needs and designs a plan that will assist tenants in making their decision. ◊ Prepares a full property report and traffic radius reports. ◊ Prepares all documentation for lease agreements and provides store-front signage assistance and property management information. Construction Management ◊ Detailed review of the property condition. Preparation of recommendations for any deferred maintenance or other related physical issues. ◊ As required, confers with architect and/or civil engineer regarding any issues beyond normal repair and maintenance. ◊ As reguired, prepares all documents, cost estimates, and time-lines necessary to effect completion of the subject repairs, maintenance and/or construction. DAVID M. FRANK NATIONWIDE COURT APPOINTED RECEIVER/TRUSTEE
  5. 5. THE MERRILL GROUP OF COMPANIES / DMF COURT RECEIVER’S OFFICE DEPARTMENTAL CHART David M. Frank CEO ASSET PROPERTY BUILDING TAKE-OVER INVESTMENT BANKING RISK BUSINESS IT ACCOUNTING BROKERAGE CONSTRUCTION LEGAL ADMINISTRATION MANAGEMENT MANAGEMENT SERVICES STRIKE TEAM & ACQUISITIONS ANALYSIS DEVELOPMENT MANAGEMENT Regional Director Property Manager Financial Services Regional Building Regional Risk Client Relations Corporate Planning Director of IT Strike Team Leader CIO Administration Administration Administration Director Services Mgr. Analysis Supervisor Manager Communications & Design Asset Manager Property Manager Vendor Account Risk Field Construction Network Administrator CFO 1 Utilities CFO 2 Manager Anaylsis Supervisor Management Property Manager Maintenance Take-Over Account Risk Field General Database Asset Manager Senior Property Budgeting Reporting Financial Reporting Supervisor Team 1 Analysis Supervisor Contracting Accountant CAM Reconciliation Lease Administration Maintenance Take-Over Account Risk Field Property Manager Analysis Imaging Supervisor Team 2 Supervisor Accounts Payable 1 Accounts Receivable 1 Take-Over Field Supervisor Field Supervisor Field Supervisor Team 2 Accounts Payable 2 Accounts Receivable 2 Field Supervisor Field Supervisor Field Supervisor Payroll Field Supervisor Collections
  6. 6. ASSET / BUSINESS MANAGEMENT CORE SERVICES ◊ Receivership Services ◊ Chapter 11 Bankruptcy Trustee Services ◊ Real Estate Asset Management Services ◊ Real Estate Property Management Services ◊ Real Estate Facilities Management Services ◊ Construction Services ◊ Construction Management ◊ General Contracting TRANSITION PLAN Our team understands the unique challenges associated with the transition process and work with the lender to minimize disruption to ongoing operations, reduce time and effort, maintain tenant morale, produce effective results and allow for informed decisions through effective communication and organization. Upon appointment we provide a 24-36 Hour Preliminary Report to the Client with Property Inspection, Evaluation & Photos and continue with the transition listed below: WITHIN 2 WEEKS WITHIN 30 DAYS ON-GOING ◊ Complete Takeover ◊ A Year end budget is ◊ Monthly and Quarterly Report is provided to Client created and provided to Financials are provided which includes abstracting Client with a cash needs ◊ Establish budget lease analysis, building analysis, repairs, leasing, procedures and policies and property condition, and tenant retention issues ◊ Implementation of the Inspections & Tenant ◊ Vendor Bidding on-going Action Plan information. and initial repairs and maintenance have ◊ Rents & Profits ◊ Action Plan is completed commenced ◊ Legal department ◊ Financial accounting notifies all the vendors has been updated and and property depository processed into our banking institution computer system DAVID M. FRANK NATIONWIDE COURT APPOINTED RECEIVER/TRUSTEE
  7. 7. ASSET / BUSINESS MANAGEMENT For over 25 years in business and 18 years as a court appointed receiver, our client relationships have been built on integrity, responsiveness, performance. At all times, The Merrill Group of Companies seeks creative solutions that maximize and protect the property value. The Companies Asset and Business Management delivers a comprehensive range of services as set forth in more detail below. ◊ The Portfolio Manager and Field Supervisor will visit the property and handle tenant issues, health and safety issues, maintenance and related subjects and prepare appropriate solutions. ◊ 24-hour Emergency Service Line, which will allow tenants and others access to the managers of your property even on holidays and weekends. Should any emergency occur, we will notify you immediately. ◊ Monitoring of vendors and contractors, preparation of specifications for new contracts, negotiation and/or renegotiations for new contracts, and performance evaluation of existing contracts. ◊ Monthly financial statement: On a cash basis to include an executive summary of operational activity and variances to the budget with a general ledger, balance sheet, budget comparison report, summary income sheet, aged delinquency report, income register, rent roll, check register and a bank reconciliation reports. ◊ Prepare tenant billings, collect rent and administer leases. ◊ A monthly narrative report summarizing the activities for the prior month. ◊ A remaining Year End Budget and the annual budget are prepared for the property. ◊ Preventative maintenance programs are established for the building’s mechanical components. These programs are completed with vendors with inspections made by the Company staff. ◊ Supervise the services of an on-site property manager (“Site Manager”). Tenant Satisfaction Surveys are sent out periodically to measure the performance of the management and maintenance personnel, as well as to assist with the future planning process. DAVID M. FRANK NATIONWIDE COURT APPOINTED RECEIVER/TRUSTEE
  8. 8. ASSET / BUSINESS MANAGEMENT ◊ The management staff monitors all tenant improvement work and works closely with tenant improvement manager to maintain integrity with the tenant. ◊ Implementation of strong tenant relations programs and administration of all tenant leases, coordinating closely with the leasing team, and establishes procedures for the prompt receipt, recordation, investigation and handling of tenant complaints and requests. ◊ Hire, discharge and supervise all employees required for the on-site management, operation, maintenance and repair of the Property. ◊ Maintain constant review of physical structure, provide recommendations and implement programs to maintain the image of the property. ◊ Take all reasonable steps, including legal action to enforce all maintenance, service and supply contracts, guarantees, warranties, bonds and other contractual undertakings, if any. ◊ Engage attorneys experienced in the field of landlord-tenant relations to prosecute defaults under leases and other agreements relating to the occupancy of the Property. ◊ Emergency Response Planning (ERP) DAVID M. FRANK NATIONWIDE COURT APPOINTED RECEIVER/TRUSTEE
  9. 9. ACCOUNTING SERVICES COMMITMENT TO INVESTING The Merrill Group of Companies’ seasoned and dedicated accounting staff are a key value added contributor to a comprehensive management program. As such, the company invests in training of our accounting team and is constantly in the workplace recruiting applicants with industry specific accounting knowledge. REAL-TIME ACCOUNTING SERVICES The Merrill Group of Companies has the ability to provide full accounting services deliver customizable, real-time reporting through web-enabled technology, allowing our managers and accountants to work more efficiently. SCOPE OF SERVICES The basic scope of accounting services includes the following: ◊ Narrative Report ◊ Variance Report ◊ Check Register ◊ Tenants Cash Receipts Journal ◊ CAM Accounts Receivable Status ◊ Bank Statements & Reconciliation Optional Reports available: ◊ Trial Balance ◊ Balance Sheet ◊ General Ledger ◊ Supporting Schedules DAVID M. FRANK NATIONWIDE COURT APPOINTED RECEIVER/TRUSTEE
  10. 10. CLIENT LIST American International Bank Essex Property Trust Midvale Capital Group American Savings Bank Federal Deposit Insurance Corporation National Bank of Southern California AMRESCO Financial, Inc. Federal National Mortgage Association Nevada State Bank Bank of America Fidelity Federal Bank North County Bank Bank of the West First Bank Northeast Savings Bank Bankers Mutual First Federal Bank of California Northern Trust of California Bank Bay View Federal Bank First Fidelity Thrift & Loan Association Ocwen Federal Bank Beneficial California, Inc. First Los Angeles Bank Omni Bank Berkadia Commercial Mortgage LLC First Nationwide Bank P F F Bank & Trust Berkeley Federal Bank & Trust FSB First Regional Bank Pacific Crest Investment & Loan Bank Brentwood Thrift & Loan First Union National Bank Pacific Thrift & Loan Co. Bristol Group GE Capital Realty Group Pomona First Federal Savings Business Bank of California General Bank Quaker City Federal Savings C-III Asset Management, LLC Glendale Federal Bank Regency Savings Bank, FSB California Center Bank GMAC Commercial Mortgage Corp. Resolution Trust Corporation California Federal Bank Guardian Bank San Pedro Bank California Thrift & Loan Hanover Financial Sanwa Bank of California California United Bank Helios AMC, LLC Southern California Bank Cathay Bank Household Commercial Financial Tokai Bank of California Cenfed Bank Imperial Capital Bank Trust Bank F.S.B. Centerline Imperial Commercial Services U. S. Bank Citibank, N.A. Imperial Thrift and Loan United California Savings Bank City National Bank Inland Empire National Bank United Pacific Bank Citizens Business Bank ITT Federal Bank Wells Fargo Bank & Trust Coast Federal Bank JE Robert Companies Western Bank Continental Savings of America Key Bank National Association World Trade Bank Equimax Mortgage & Loan Marathon National Bank DAVID M. FRANK NATIONWIDE COURT APPOINTED RECEIVER/TRUSTEE
  11. 11. RECEIVER / TRUSTEE / PROVISIONAL DIRECTOR David M. Frank David M. Frank is Chief Executive Officer of The Merrill Group of Companies, LLC a real estate development and property management company founded in 1985. Mr. Frank’s career began in the legal field in 1984 after earning a Juris Doctorate in Law at Pepperdine University Law School and a Bachelor’s degree from University of California, Los Angeles in 1982. Mr. Frank has become one of the nation’s foremost experts in receiverships. He is currently acting on behalf of the Division of Resolution and Receiverships of the Federal Deposit Insurance Corporation and has had over 74 public or institutional clients. As the principal as well as the founder of the Company, Mr. Frank has a 25 year history of working in business, forensic accounting, and commercial real estate. Beginning in 1992 began to handle bankruptcy matters, foreclosures, court appointed receiverships and appointments for Resolution Trust Corporation (RTC) nationwide for over 400 cases. As a provisional director Mr. Frank was involved in business partnership disputes. Mr. Frank is a well-seasoned professional having acted as an expert witness, complex business litigation matters, including fraud issues, tracing of funds, financial data reconstruction, and valuations. Mr. Frank has spoken on receiverships, business restructuring. As a receiver, Mr. Frank has operated hotels, business, real estate, and factories involving hundreds of millions of dollars of properties and assets. EDUCATION UCLA Graduate 1982 Pepperdine School of Law Graduate 1984 California Broker’s License 1982 Nevada Broker’s License 2003 California General Contractor’s License 1992 DAVID M. FRANK NATIONWIDE COURT APPOINTED RECEIVER/TRUSTEE
  12. 12. FEE SCHEDULE RECEIVERSHIP Upon confirmation as a Court Appointed Receiver: $250.00 per hour for State Court Receiver $100.00 per hour for Receiver Staff Services Minimum Monthly Fee: $1,250.00 Plus Management Fees based on the Gross Receivables collected MANAGEMENT SERVICES: Size of Asset Percentage of OR Monthly One Time Gross Income Minimum Initial Set-up Report Abstraction Fee Retail: 0 to 40,000 sq. ft. 6.0% $1,750.00 $3,000.00 40,000 to 100,000 sq. ft. 5.0% $5,000.00 $3,500.00 100,000 to 200,000 sq. ft. 4.5% $8,000.00 $4,000.00 200,000 sq. ft. and over 3.5% $10,000.00 $6,000.00 Multi-Family: 1 to 15 Units 6.0% $850.00 $2,500.00 16 to 30 Units 6.0% $1,500.00 $3,000.00 31 to 60 Units 6.0% $2,500.00 $3,500.00 61 to 100 Units 5.0% $3,500.00 $5,000.00 101 to 150 Units 4.5% $5,000.00 $6,000.00 151 Units and up 4.0% $6,000.00 $7,000.00 DAVID M. FRANK NATIONWIDE COURT APPOINTED RECEIVER/TRUSTEE
  13. 13. FEE SCHEDULE Office: 0 to 40,000 sq. ft. 6.0% $1,750.00 $3,000.00 40,000 to 100,000 sq. ft. 5.0% $5,000.00 $3,500.00 100,000 to 200,000 sq. ft. 4.5% $8,000.00 $4,000.00 200,000 sq. ft. and over 3.5% $10,000.00 $6,000.00 Industrial: 0 to 40,000 sq. ft. 5.0% $1,750.00 $3,000.00 40,000 to 100,000 sq. ft. 4.0% $5,000.00 $3,500.00 100,000 and over 3.5% $8,000.00 $4,000.00 Single-Family Residential: Any Size, for first month $550.00 per Unit Any size, for subsequent months $375.00 per Unit Special Unique Assets: Subject to negotiation All properties are subject to a termination fee of $2,500 to close out the books and cover costs of delivering the property documents to the receiving party OTHER SERVICES OFFERED: Asset Management Services: Subject to negotiation Commercial Leasing: 6% of the gross scheduled rental income for the first 5 years of the primary term, and 3% of the gross scheduled rental income for the second 5 years of the primary term Construction Management: 20% of the aggregate amount of the contract price of the work DAVID M. FRANK NATIONWIDE COURT APPOINTED RECEIVER/TRUSTEE
  14. 14. CORPORATE CONTACTS David M. Frank Jonathan Klempa 22817 Ventura Blvd., Suite 310 22817 Ventura Blvd., Suite 310 Woodland Hills, CA 91364 Woodland Hills, CA 91364 818-888-9476 Office 818-888-9476 Office 818-887-6666 Fax 818-887-6666 Fax Susan Punos Danielle Watson 3855 South Jones Blvd., Suite 102 3855 South Jones Blvd., Suite 102 Las Vegas, NV 89103 Las Vegas, NV 89103 702-851-0588 Office 702-851-0588 Office 702-889-0008 Fax 702-889-0008 Fax Audrey Kanthack Katie Kleber 3855 South Jones Blvd., Suite 102 3855 South Jones Blvd., Suite 102 Las Vegas, NV 89103 Las Vegas, NV 89103 702-851-0588 Office 702-851-0588 Office 702-889-0008 Fax 702-889-0008 Fax Lisa Murray - Consultant Harry Ramnath 22817 Ventura Blvd., Suite 310 3855 South Jones Blvd., Suite 102 Woodland Hills, CA 91364 Las Vegas, NV 89103 818-888-9476 Office 702-851-0588 Office 818-887-6666 Fax 702-889-0008 Fax Marty Bolkin Carol Dvorak 22817 Ventura Blvd., Suite 310 3855 South Jones Blvd., Suite 102 Woodland Hills, CA 91364 Las Vegas, NV 89103 818-888-9476 Office 702-851-0588 Office 818-887-6666 Fax 702-889-0008 Fax Joe Sulima Craig Katchen 3855 South Jones Blvd., Suite 102 3855 South Jones Blvd., Suite 102 Las Vegas, NV 89103 Las Vegas, NV 89103 702-851-0588 Office 702-851-0588 Office 702-889-0008 Fax 702-889-0008 Fax Larry Luck Janet Bryant 3855 South Jones Blvd., Suite 102 3855 South Jones Blvd., Suite 102 Las Vegas, NV 89103 Las Vegas, NV 89103 702-851-0588 Office 702-851-0588 Office 702-889-0008 Fax 702-889-0008 Fax DAVID M. FRANK NATIONWIDE COURT APPOINTED RECEIVER/TRUSTEE
  15. 15. REFERENCES H. Stewart Carrico II Adelaide Maudsley Senior Vice President Chapman and Cutler LLP C-III Asset Management LLC One Utah Center 5221 N. O’Connor Blvd., Suite 600 201 South Main Street, Suite 2000 Irving, TX 75039 Salt Lake City, Utah 84111 Phone: 972-868-5380 Main: 801-533-0066 Fax: 972-868-5495 Direct: 801-320-6731 Fax: 801-533-9595 Curt Spaugh Stephen Santacroce Senior Vice President Senior Asset Manager Helios AMC, LLC GE Capital 2 Embarcadero Center, Suite 1360 Commercial Finance Real Estate San Francisco, CA 94111 1901 Main St., 7th Floor Phone: 415-374-2834 Irvine, CA 92614 Main: 415-374-2820 Phone: 949-477-1544 Fax: 415-374-2704 Main: 714-319-0660 Fax: 949-477-0903 Richard Ormond Gabriel Liao Shareholder Perkins Coie LLP BuchalterNemer, A Professional Corporation Attorney at Law 1000 Wilshire Boulevard, Suite 1500 1888 Century Park East, Suite 1700 Los Angeles, California 90017-2457 Los Angeles, California 90067-1721 Phone: 213-891-5217 Phone: 310-788-3208 Fax: 213-630-5748 Fax: 310-843-1256 DAVID M. FRANK NATIONWIDE COURT APPOINTED RECEIVER/TRUSTEE