Motion filed to place Kettering Tower into receivership - Baltimore Business Journal:

ycoguqi.wordpress.com
Charlotte, N.C.-based Bank of America N.A. and Del.-based filed the motion May 27 with the Montgomerty County Court of Common Pleas to appoin as receiver of the Kettering located at40 N. Main St. The motion claims the building’s owner, LLC, has not made full payments onthe property’ s mortgage since March 11. A hearing is schedulex for June 11 on the motionj to appointa receiver. If the courr rules to put the buildinvinto receivership, its owners would lose but not ownership, of the property.
According to the Kettering Tower Partners owes morethan $44 million to the Uri Mermelstein, managing partner of Kettering Tower said the group has been working with the lenderx over the last few monthd in an effort to negotiated a payment plan that will allow it to keep controo of the 441,000-square-foot building. He seeks to come to termz with the lenders on apayment plan. He said puttinvg the building into the handws of a receiver would be bad for its perceptionj and couldaffect leasing. “The Kettering Towetr has the name, the location and the prestige,” Mermelsteijn said. “If it goes into receivership, it will be a black eye and a lossof tenants.
I will fighgt to prevent that.” A receiver wouldr collect all rents, profits and income from the buildingand “prevent furtherr diversion of rents,” according to the filing, but Mermelstein said the building would be bettetr off left in his group’s care. “We are best qualified to run the building, in terms of renewing and signingvnew leases,” he said. Paul Perry, a lawyer with Detroit-base d Miller, Canfield, Paddock and Stonre PLC representingthe plaintiffs, said a receiver is an office r of the court and the decisionn of who will act as receivedr is up to the court.
The filingb shows the plaintiffs have recommended CB Richard Ellis be appointed as receiverbecause “it is an experiencer receiver.” Christine Haaker, a lawyedr with the Dayton office of Thompso and Hine LLP representing Ketterinv Tower Partners, said this filing is an unfortunate resul t of the recession. “It’s not a full building. When a buildintg is not full, it’s hard to cover all the Haaker said. “We will continue to advocate the ownera remain operating the buildinfg and that they will take action in the best interesg of the building and its tenants and no extra moneh willbe spent.
” Mermelstein said the building has lost tenantx as a result of the economic Kettering Tower has aboutt a 77 percent occupancyt rate, he said. The building is home to tenants suchas , , Shillito and Dyer, as well as the . Mermelstein said Ketterinf Tower Partners has been unable to pay part of the mortgagde because it has focused on paying all operatinb expenses of thebuilding first. “Ourt obligations are to the building first and the lender he said.
“We will fight tooth and nail to keepthis