Background
(upon Brookhill's Commencement of Management & Leasing
assignment):
Approximately 30 of the 37 tenants were not paying rent
on a regular basis.
Real Estate Tax escalation charges not billed to tenants
for four prior years.
Leasing of available space not aggressively pursued
by owners.
Landlord/tenant relations abysmal.
Many tenants defaulting on leases and on verge of vacating
property.
Physical appearance of property deteriorated with deferred
maintenance and extensive graffiti.
Many vacated storefronts boarded up giving run down
appearance.
|
| June 1991: |
As part of Foreclosure Action, F.D.I.C. appoints Brookhill
as exclusive management and leasing agent to "Stabilize"
and turnaround property. |
| July 1991: |
Marketing/Leasing plan developed to re-lease all available
space at market rents. New tenants move in and many
under-performing retailers replaced. |
|
Aggressive campaign undertaken to collect all past
due rentals. Disputed unpaid Real Estate Tax billings
addressed and resolved. Relations with tenants significantly
improved. |
|
Review tenant performance and payment history to resolve
problems and improve area. Campaign undertaken to work
with each tenant to improve appearance of the complex
and upgrade image of block. Implement program to keep
property free of graffiti. |
| Nov. 1991: |
National retailer in the complex had previously closed
and boarded storefront. Negotiations result in reopening
of store under new concept creating bright, attractive
store, enhancing marketability of the property. |
|
Physical appearance of property improved dramatically. |
| Oct. 1992: |
Within 15 months, property performance dramatically
increases resulting in approximately $2,000,000 in
excess cash flow being distributed to lender that
foreclosed on property. |
|
To "turnaround property", 57% of leases
were either renewed, extended or renegotiated. Regular
monthly cash receipts doubled since takeover of management. |
| March 1993: |
Property sold by the FDIC for $19,550,000,
representing an increase of $8,550,000 or 78% over
the value in June 1991 when Brookhill took over management. |
