In Downtown Cleveland, multiple buildings in receivership can be seen from Euclid Avenue and East 12th Street, starting with the reddish Statler Arms apartments. Not only is it in foreclosure, but so is 925 Euclid at left and Reserve Square, seen in the distance at right. Recently, LIV Cleveland, originally the Chesterfield Apartments next to Reserve Square, was in foreclosure, too (Google). CLICK IMAGES TO ENLARGE THEM.
CRESCO adds receivership division
When a company expands in an already busy market, the inference is that the company expects the market to get even busier. Unfortunately, that may be the case with the commercial property market where foreclosures keep coming and more receivers are getting appointed by courts to hire real estate brokers.
While Downtown Cleveland isn’t the only place where commercial properties — office buildings, apartment complexes and mixed-use properties — are slipping into foreclosure, it’s where they’re most concentrated. And it’s where many well-known, sizable buildings are located.
In response, Cushman & Wakefield | CRESCO Real Estate of suburban Independence formally announced this week the launch of a specialized Receivership Services Division, expanding the firm’s service platform to include distressed asset services for courts, lenders and stakeholders.
This new division positions CRESCO as a partner in managing distressed assets across all property types, with a strategic focus on rapid stabilization, thoughtful repositioning, and efficient disposition to maximize recovery, the company said in a news release.
CRESCO representatives say it is bringing deep expertise across leasing, investment sales, ownership advocacy, property management, landlord/seller representation, and public incentives structuring.
“Courts and creditors deserve more than passive management and prolonged fee collection,” said Rico Pietro, a principal at CRESCO, in a written statement. “We’re stepping in to change the standard.”
Two Downtown Cleveland buildings visible here are in foreclosure — the former IMG Building, 1360 E. 9th, at left, and the Fifth Third Bank Building, 600 Superior Ave., at right (Google).
Pietro said his company has identified a large gap in traditional receivership models, often characterized by passive oversight, limited marketing execution, and prolonged timelines driven by fee structures rather than outcomes.
“No firm in Greater Cleveland understands how to quickly evaluate, reposition, and market these distressed properties for maximum recovery better than we do,” Pietro said.
Coincidentally, the announcement comes as one of the most high-profile foreclosures, 925 Euclid Ave., hit the market last week in a story broken by NEOtrans. Pietro expressed frustration that no local brokerage with knowledge of local real estate was selected to market this 1.4-million-square-foot property.
Another was the Rockefeller Building, 614 W. Superior Ave., in which the lender took over a neglected, vandalized Gilded Age property. But break-ins and vandalism continued under the receiver’s oversight. A buyer, K&D Group, stepped in to hopefully remediate the situation.
“Our Receivership Division will deliver strategic planning, professional marketing from day one, and decisive action that honors court objectives and delivers results for all parties,” Pietro added.
CRESCO’s Receivership Division will be led by former Lakewood Planning Director Bryce Sylvester, now managing director at CRESCO. His background in economic development and operational leadership positions him to manage these assignments across Northeast Ohio, not just downtown.
Control and sale of the Rockefeller Building has been taken over by its lender as it prior owner defaulted on its obligations (NEOtrans).
“Our CRESCO platform will deliver a coordinated approach across property management, leasing, sales, marketing, and strategic advisory services, helping position distressed assets for stabilization, recovery, and resolution,” said Sylvester.
“We will approach every appointment with the discipline, transparency, and care that a fiduciary role requires,” he added.
CRESCO’s Receivership Services Division will offer marketing packages, analysis of a property’s highest and best use to reposition it, allocate limited funds to stabilize a building, act aggressively to minimize costs and maximize revenues, and offer leasing, sales, property management and incentives
“Our platform gives us a real time view of demand, tenant movement, investor expectations, and market pricing across Greater Cleveland,” said Eliot Kijewski, a principal at CRESCO.
“That perspective can be extremely valuable in receivership situations, where understanding the market quickly can influence how an asset is stabilized, repositioned, or brought to market,” Kijewski noted.
CRESCO said it is already reaching out to judges, judicial staff, court-appointed professionals, attorneys, lenders and other stakeholders to engage with the firm for future receivership opportunities.
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