Farmington Hills, Michigan (June 20, 2014) – Friedman Integrated Real Estate Solutions, one of the nation’s leading providers of commercial real estate services, is keeping a watchful eye on a new law that significantly changes the rules related to the appointment of receivers.
Effective May 1, the Michigan Supreme Court amended Michigan Court Rules (MCR) 2.621 and 2.622 based upon recommendations made by members of the Receivership Committee of the Business Law Section of the State Bar of Michigan. Prior to the amendments, there was limited guidance found in the applicable statutes and court rules for business attorneys and their clients regarding receiverships. The new rules now offer guidelines for the appointment of a receiver and more importantly, expressly provide criteria that judges and attorneys must consider when selecting a receiver. The new language ensures that the Court retains complete discretion over the appointment of receivers.
Michael S. Leib, a shareholder and leader of the Creditor’s Rights, Insolvency and Bankruptcy Practice Group at Maddin, Hauser, Roth & Heller, P.C. of Southfield, believes the changes in the law will be beneficial to Friedman. “According to the new law, ‘Every receiver selected by the Court must have sufficient competence, qualifications, and experience to administer the receivership estate.’ This presents an incredible opportunity for Friedman,” explained Leib. “Friedman always met those high standards, but now that the criteria have been codified, it will be easier for them to showcase their experience and expertise in these matters.” Earlier this month, Leib was a featured speaker at a seminar to explain the new rules and procedures hosted by the State Bar of Michigan Business Law Section.
Friedman’s expertise in managing under-performing and financially-troubled real estate for financial institutions and special servicers is unparalleled. One example highlighting Friedman’s success in this area is 20 Oak Hollow, an 84,961 square foot office building located in Southfield. The three-story brick building’s leasing had stagnated at an unsatisfactory level when Friedman was appointed receiver in 2012. With a comprehensive plan in place to stabilize the building’s operations that included a targeted marketing campaign, Friedman was able to generate significant leasing interest, resulting in a 20% increase in occupancy up to 94% occupancy. This leasing activity and stabilization of the building’s operation resulted in a strong sales price.
“Our distressed asset and receivership services focus on determining and then implementing the optimal solution to maximize the performance of an asset, “ said David Friedman, President and CEO. “As an industry leader in this area, the new law governing the qualifications of receivers should be advantageous in showcasing our company’s ability to efficiently and effectively turnaround any property.”
ABOUT FRIEDMAN INTEGRATED REAL ESTATE SOLUTIONS
Recognized as one of the largest privately-held commercial real estate organizations in the nation, Friedman Integrated Real Estate Solutions provides clients with a single point of contact for the full range of services it offers.
Friedman manages over 140 facilities encompassing more than 16M SF of commercial and 7,000 multi-family units across the country. Friedman’s brokerage team has over 800 current listings with $10 billion in closed transactions. As owners and managers of commercial property for over 25 years, Friedman understands what it takes to achieve results that maximize the client’s objectives.
For more information, please visit: www.friedmanrealestate.com.