Receivership is the process of appointment by a Court of Receivership to take custody of the operations, rents, and profits of a property pending a final disbursement for the benefit of creditors.
Reflections on the Lake, a 457 unit apartment complex located near I-71 and 161, was struggling with numerous challenges, including collections, crime, illegal tenant activities, numerous building code violations, and delinquent tax bills when a court order was issued moving it into receivership. Gryphon Asset Management was the Receiver given the responsibility to stabilize the property and determine the best way to manage the asset until it could be sold to a new owner.
A property falling into receivership is not an uncommon occurrence. At the same time that Reflections was struggling, there were at least 14 other properties in Franklin County alone that were battling the same issues as this property.
Borror Property Management, in collaboration with its extended family of companies, was called in by Gryphon to assess, control, and stabilize this property. Over the past three years, Borror Property Management has been brought in by Gryphon to operate 15 receivership properties. In this case, there was a tenant base to manage and serve, a facility in need of attention, a staff that required guidance and better tenant selection processes, as well as numerous financial and tax issues to be resolved.