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

avaohev.blogspot.com
Charlotte, N.C.-based Bank of Americq N.A. and Wilmington, Del.-based filed the motion May 27 with the Montgomergy County Court of Common Pleaas to appoint as receiver of the Kettering located at40 N. Main St. The motion claims the building’w owner, LLC, has not made full paymentsw onthe property’s mortgage sinc March 11. A hearing is scheduled for June 11 on the motiomn to appointa receiver. If the court rules to put the buildinhinto receivership, its owners would lose control, but not ownership, of the property. Accordingt to the filing, Kettering Tower Partners owes morethan $44 millio n to the plaintiffs.
Uri Mermelstein, managingy partner of Kettering Tower said the group has been workingv with the lenders over the last few months in an effort to negotiat a payment plan that will allow it to keep control ofthe 441,000-square-footf building. He seeks to come to termzs with the lenders on apaymenf plan. He said putting the building into the hands of a receivet would be bad for its perception and couldaffect leasing. “Thed Kettering Tower has the name, the location and the prestige,” Mermelstein said. “If it goes into receivership, it will be a blaclk eye and a lossof tenants. I will figh to prevent that.
” A receivetr would collect all profits and income from the buildinggand “prevent further diversion of rents,” according to the filing, but Mermelsteinj said the building would be bettedr off left in his group’s care. “Wes are best qualified to run the building, in terms of renewing and signing new he said. Paul Perry, a lawyer with Detroit-base d Miller, Canfield, Paddock and Stond PLC representingthe plaintiffs, said a receiverr is an officer of the court and the decision of who will act as receivere is up to the court. The filing shows the plaintiffas have recommended CB Richard Ellias be appointed as receiverbecaused “it is an experienced receiver.
” Christine Haaker, a lawyer with the Daytomn office of Thompson and Hine LLP representing Ketterinfg Tower Partners, said this filing is an unfortunatse result of the recession. “It’a not a full building. When a buildingg is not full, it’s hard to coverr all the costs,” Haaker said. “We will continuwe to advocate the owners remain operating the buildinfg and that they will take actio in the best interest of the building and its tenantes and no extra money willbe spent.” Mermelsteib said the building has lost tenants as a result of the economi c downturn. Kettering Tower has abouf a 77 percentoccupanc rate, he said.
The buildinhg is home to tenants suchas , , Sebaly, Shillito and as well as the . Mermelsteinb said Kettering Tower Partners has been unable to pay part of the mortgags because it has focuserd on paying all operating expenses of thebuilding “Our obligations are to the building first and the lendef second,” he said. “We will fight tooth and nail to keepthis