Appointed as Receiver on an $8M+ loan for an 89,000 square feet property containing some 635 mini-storage rental units, 250 covered and uncovered RV/boat/auto rental spaces, and 30 tractor trailer rental parking spaces.
Resolute was appointed as the Receiver and Property Manager for the asset and businesses conducted at the property.
The loan default was triggered by a shortage of cash resulting from an absentee owner that experienced employee embezzlement enabled by the lack of adequate internal accounting and administrative controls and management oversight.
Resolute found the property to have fallen into disrepair with several matters adversely affecting health and safety, the business operations out of compliance with federal and state laws, and facing utility shut offs and loss of other services through nonpayment of bills. Resolute quickly stabilized the property and operations, repatriated funds that had been misdirected to outside accounts, addressed staffing, safety, security, and deferred maintenance issues, brought the operations into legal compliance, brought all payables current, developed and instituted sales and marketing programs, and energized the income sheet with the addition of a Swap Meet on the weekend to drive both storage and ancillary revenue.
Resolute’s efforts improved occupancy, revenues, and cash flow, bringing the operation into profitability. Lender did not come out of pocket at any time for any amount as Resolute’s combination of astute cash management, increasing the revenues and managing the costs, permitted cash flow to finance all repairs, compliance costs, and ongoing operating expenses.