Resolving complicated commercial real estate situations
ABOUT US
MRK Resolutions is a boutique commercial real estate disintermediation firm operated by Mark King and related professionals. Based in Miami, Florida, MRK focuses on challenged commercial real estate that has complex problems that need to be resolved for the benefit of the various stakeholders invested in the asset and MRK functions in this role as a court-appointed receiver.
Commercial real estate is complex and complicated; when problems arise, often times there are many moving parts that can be difficult to reconcile. As a court-appointed receiver, MRK Resolutions does not have a personal connection to the issues of the situation and, therefore, does not face the emotional burdens that often weigh upon a traditional civil litigant.
MRK Resolutions is a resource for myriad participants of the commercial real estate capital stack and associated professionals. MRK can add value to creditor/debtor, lender/borrower disputes, partnership dissolutions, family conflicts and those enforcing judgments.
The July 1, 2020 legislation passing the Uniform Commercial Real Estate Receiver Act has codified the structure and use of receivers across 9 states and offers courts, receivers and attorneys a standard set of rules and procedures.
FINDING RESOLUTION
BUILDING
A PLAN
During a commercial real estate conflict, there can be many benefits to the parties' application and use of a court-appointed receiver. A properly constructed and written court order utilizes the power of the court to change the status quo and install a third party for fiscal and operational responsibility. This third party receiver must report to the court and has responsibilities to all the parties to act in the best interest of the commercial real estate and attendant cash flows.
Also, and interestingly, often times just the petitioning of the court to appoint a receiver can prompt a resolution where it was not previously indicated. The messaging is clear; take action now or it will cost time, money and may result in the loss of control of the property. This is a powerful message.
STRATEGY
AND OPERATION
A court-appointed receiver process can deliver better results and in less time than a foreclosure or bankruptcy process. The receiver process can add value, while both the foreclosure and bankruptcy processes often times impugn value, even when it may not be warranted.
A qualified and skilled receiver is in a good position to mediate between the parties and even negotiate mutually acceptable solutions, all while protecting the real estate and controlling the cash-flows.
Sometimes a highest and best use analysis or a fresh approach to management can provide an increase in cash-flow and, therefore, increase the asset value.
IMPROVING PROCESSES
MRK Resolutions as a court-appointed receiver can provide a variety of solutions with the following benefits:
- Receiver process keeps the secured parties off of title and out of the chain of liability
- Faster resolution
- Control of cash-flow
- Maximization of asset values
UCRERA
“Uniform Commercial Real Estate Receiver Act”
I
Effective July 1, 2020
II
Clarifies and codifies what was previously more ambiguous and subject to judicial interpretation
III
Provides a uniform standard and procedural framework for the appointment of receivers for state courts while also establishing owner's and receiver's powers and duties
IV
Can implement either pre or post judgment
V
The Act specifies the criteria that the Court should consider in granting receivership;
- Protect from waste, loss, substantial diminution of value, transfer, dissipation or impairment
- Mortgagor agrees in writing
- The collateral held is insufficient to satisfy the secured debt (similar to adequate protection in BK)
- Owner fails to turnover proceeds or rent
The Act grants the Court the power to stay and enjoin actions against Receivership property (similar to a Bankruptcy stay)
Owner must preserve and turnover receiver property to the receiver
Receiver is accountable to the Court, the Owner and the Lender
Receiver is an available tool to effectuate a sale for the purposes of satisfying judgments, both senior and junior
EXPERIENCE
Download Case Studies Below
