Coreland Lands Receiverships, Expects More

TUSTIN, CA-In a sign of things to come, Coreland Cos. Principal Patrick Galentine has been appointed court receiver for two Southern California office and industrial projects totaling 220,000 square feet. Galentine, who has extensive experience with receiverships from the downturn of the 1990s, tells GlobeSt.com that these are the first of what will be a growing number of receiverships that Coreland and others with expertise in the receivership arena will be assigned to as the commercial real estate industry comes to terms with some of the problems resulting from the credit crunch and the economic downturn.

The two properties for which Galentine is receiver are a newly built 200,000-square-foot development of 50 industrial and office condominiums called Cornerstone Commerce Centre on Hall Road in Downey that is a project of Newport Beach, CA-based Shaw Properties. The other is a 20,000-square-foot executive office suites development on Gillette Avenue in Irvine that is a project of Executive Offices of Orange County LLC.

Coreland Cos., whose principals managed hundreds of receiverships in the 1990s, is serving as property manager for both of the properties during the receiverships. Galentine is already in line to be named receiver for a number of other office, industrial and retail properties, part of what he describes as a coming wave of receiverships across the country. “Whether this will be a tidal wave like it was in the 1990s remains to be seen, but we are definitely just at the beginning of the receivership business in this cycle,” he says. “I don’t think anybody really knows what is going to happen or for how long, but I would guess 12 to 24 months.”