Motion filed to place Kettering Tower into receivership - Puget Sound Business Journal (Seattle):

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Charlotte, N.C.-based Bank of America N.A. and Del.-based filed the motion May 27 with the Montgomery County Court of Common Pleaxs to appoint as receiver of theKettering Tower, located at 40 N. Main St. The motionb claims the building’s LLC, has not made full paymentws onthe property’s mortgagew since March 11. A hearing is scheduled for June 11 on the motiomn to appointa receiver. If the court rules to put the buildinvginto receivership, its owners would lose but not ownership, of the property. According to the filing, Ketterin g Tower Partners owes morethan $44 milliohn to the plaintiffs.
Uri Mermelstein, managinv partner of KetteringTower Partners, said the grouop has been working with the lenders over the last few monthws in an effort to negotiate a payment plan that will alloew it to keep control of the 441,000-square-foor building. He seeks to come to terme with the lenders on a payment He said putting the building into the hands of a receiverd would be bad for its perception and couldaffect “The Kettering Tower has the name, the locatiomn and the prestige,” Mermelstein said. “If it goes into it will be a black eye and a loss of I will fight toprevent that.
” A receiverr would collect all rents, profits and income from the buildinf and “prevent further diversion of rents,” accordinfg to the filing, but Mermelsteih said the building would be better off left in his group’s care. “We are best qualifief to run the building, in terms of renewing and signing new he said. Paul Perry, a lawyer with Detroit-based Canfield, Paddock and Stone PLC representing the said a receiver is an officer of the court and the decisionm of who will act as receivet is up tothe court. The filiny shows the plaintiffs have recommendedd CB Richard Ellis be appointed as receiverbecause “it is an experienced receiver.
” Christinre Haaker, a lawyer with the Daytomn office of Thompson and Hine LLP representing Ketteringf Tower Partners, said this filingb is an unfortunate result of the recession. “It’s not a full When a building isnot full, it’sx hard to cover all the costs,” Haaked said. “We will continuer to advocate the owners remaibn operating the building and that they will take actio in the best interes t of the building and its tenants and no extra money will be Mermelstein said the building has lost tenants as a result of theeconomix downturn. Kettering Tower has about a 77 percenttoccupancy rate, he said.
The building is home to tenant s suchas , , Sebaly, Shillito and as well as the . Mermelstein said Ketteringh Tower Partners has been unable to pay part of the mortgagse because it has focused on paying all operating expensesd of thebuilding first. “Our obligationsa are to the buildinvg first and thelender second,” he “We will fight tooth and nail to keep this building.”