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

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Charlotte, N.C.-based Bank of America N.A. and Del.-based filed the motion May 27 with the Montgomery Countg Court of Common Pleas to appoint as receiver of theKettering Tower, located at 40 N. Main St. The motiob claims the building’s owner, LLC, has not made full paymentes onthe property’s mortgagd since March 11. A hearing is schedulede for June 11 on the motion to appoinga receiver. If the couryt rules to put the buildinginto receivership, its owners woul lose control, but not of the property.
According to the filing, Ketterinf Tower Partners owes morethan $44 million to the Uri Mermelstein, managing partner of Kettering Towedr Partners, said the group has been workingy with the lenders over the last few months in an effort to negotiate a payment plan that will allowe it to keep control of the 441,000-square-fooft building. He seeks to come to terms with the lenders on apaymentg plan. He said puttintg the building into the hands of a receiver woulxd be bad for its perceptio and couldaffect leasing. “The Kettering Tower has the the location andthe prestige,” Mermelstein said. “If it goes into it will be a black eye and a loss of I will fight topreveng that.
” A receiver would collect all profits and income from the buildint and “prevent further diversioj of rents,” according to the filing, but Mermelsteih said the building would be better off left in his group’d care. “We are best qualified to run the in terms of renewing and signingnew leases,” he Paul Perry, a lawyer with Detroit-based Canfield, Paddock and Stone PLC representingg the plaintiffs, said a receivefr is an officer of the court and the decision of who will act as receivedr is up to the court. The filing shows the plaintiffds have recommended CB Richarde Ellis be appointed as receiverbecause “if is an experienced receiver.
” Christiner Haaker, a lawyer with the Dayton office of Thompso and Hine LLP representing Kettering Tower Partners, said this filingh is an unfortunate result of the recession. “It’s not a full When a building isnot full, it’s hard to cove all the costs,” Haakerr said. “We will continue to advocate the owners remaih operating the building and that they will take actiom in the best interest of the building and its tenants and no extra money will be Mermelstein said the building has lost tenantxs as a result of theeconomi downturn. Kettering Tower has about a 77 percent occupancy he said.
The building is home to tenants suchas , , Shillito and Dyer, as well as the . Mermelsteihn said Kettering Tower Partners has been unable to pay part of the mortgaged because it has focused on paying all operating expensew of thebuilding first. “Our obligations are to the building first and thelendere second,” he said. “We will fighgt tooth and nail to keepthis