ATLANTA, Oct. 29, 2008 – In direct response to challenges in the current economic climate, Jones Lang LaSalle through its Distressed Property Receivership Services has accelerated its activity to provide lenders, servicers, and financial institutions assistance in managing defaulted real estate assets. Greg Maloney, CEO and President, Jones Lang LaSalle Retail, is currently acting as Receiver for nine distressed properties across the country.
As a Receiver, Mr. Maloney is appointed by the courts and will work closely with lenders and borrowers to control and direct the use of assets until resolutions are achieved. Although Receivership designations vary state by state, they share the same premise of appointing independent managers to assume fiduciary responsibility for the assets. During the Receivership process, the Receiver chooses the most appropriate firm to manage and lease the asset, and provides recommendations for the most profitable outcome of the asset including the sale of the asset.
Receivership services will be provided to not only for retail properties but also for hotel, land, industrial, multifamily, and office properties, asset classes in which Jones Lang LaSalle has unparalleled commercial real estate expertise. In addition to Receivership Services, Jones Lang LaSalle also provides strategic consulting, investment sales, financing, brokerage and management services.
“Jones Lang LaSalle’s reputation, coupled with the breadth of services it offers makes it the ideal firm to handle all types of distressed properties,” said Mr. Maloney. “In fact, we are not only currently in talks with owners of retail assets but also Hotel and Multifamily asset owners.” Greg Maloney has been an appointed Receiver for more than 15 years.
According to a recent edition of The Wall Street Journal, “Green Street Advisors Inc., a real-estate research and consulting firm, estimates that about a third of the $600 billion in commercial-mortgage bonds outstanding will come due between 2010 and 2012. With values declining, interest rates rising and lenders reluctant to part with cash, many borrowers will have to pay off at least part of their loans, find partners or give up the property.
Maloney added, “As the Receiver, the fiduciary responsibility is to manage the property, determine ways to increase the Net Operating Income (NOI) and find an optimal solution for the lenders. With Jones Lang LaSalle's breadth of expertise, we will be able to help owners of distressed properties maximize value and achieve optimum results.”