Mixed-use, high-end retail center in Scottsdale, AZ with 23,000 square feet of space.
Appointed as Receiver on a $11.5M loan for a 23,000 square foot mixed use retail center in Scottsdale, AZ. Resolute acted as the Receiver, Property Manager, and disposition agent for the asset.
Resolute was appointed to be the receiver for 30 months on this underperforming and highly dysfunctional retail component to an otherwise successful mixed-use development. The default was triggered by a flawed business concept to assemble local boutique tenants organized in a communal setting to resemble a free-flowing market environment. The combination of charging the highest dollar per square foot rents in the trade area and the unsophisticated nature of the individual operators doomed this property for failure.
The asset was riddled with issues that needed to be addressed related to its original sale and its connection to the larger Community Association. Paramount to this was a discrepancy in declared size of the space that was able to be physically occupied compared to what the Lender believed they had as collateral. The ramifications of this were profound as it affected taxes, leasable area, community association fees, CAM charges, etc. Furthermore, the layout of the space without demising walls added an additional element of complexity.
Resolute successfully procured a buyer that was willing to purchase the property “as-is, where-is” with all of its faults for a premium.