Greg Maloney, president and CEO of JLL Retail, has been appointed by bankruptcy courts to work closely with lenders and borrowers on resolving issues with the properties, which mainly involve Boscov's, a Reading, PA-based department store chain that filed Chapter 11 in August. Seven of the initial properties are Boscov's stores in Pennsylvania and Maryland, while two others are shopping malls in Macon, GA and Burlington, NC.
Receivers have the fiduciary responsibility of stabilizing properties by finding the most appropriate firm to manage and lease assets, while providing recommendations for the most profitable outcome, which could include a sale of the property. Maloney, an appointed receiver for more than 15 years, says the process would be easier if not for the current credit crisis limiting potential buyers.
"The problem is consumer confidence," Maloney tells GlobeSt.com. "The system is not broken. We just need to release some of the money and things will start rolling again. There aren't that many all-cash buyers out there."
Maloney adds that JLL Retail will likely be appointed receiver for several other properties soon, including hotel and multifamily assets. The firm provides strategic consulting, investment sales, financing, brokerage and management services in addition to receivership.
Maloney points to estimates by Green Street Advisors Inc. that about a third of the $600 billion in commercial mortgage bonds outstanding will come due between 2010 and 2012. As values decline, and with prospective buyers waiting for prices to bottom out, he notes that many borrowers will either have to pay off part of their loans or take on partners in order to avoid losing their property.
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