In September 2008, Jim Parrack, Senior Vice President of Price Edwards & Company, was appointed receiver for Crossroads Mall; Price Edwards & Company assumed management of the Mall. The following lists some of the benefits/improvements provided to the property as a result.
- Took third-party management of HVAC plant in-house; reduced overhead $15,000 per month and made the operation more responsive.
- Implemented energy management program through timers, monitoring and equipment repair. Added vent hoods to allow use of make-up air system. Initial cost $15,000, one month payback in savings. Estimated 15 percent ongoing reduction in energy consumption.
- IT review resulted in bringing server on site (to existing equipment), eliminating third-party provider and support, converted to DSL from dedicated T-1 line with no change in service, self host web site. No initial costs, ongoing savings to the property of $2,500 per month.
- Elimination of overhead and fees from prior ownership, savings of $15,000 per month.
- Reviewed and reorganized administrative staffing, eliminated two positions, resulting in nearly $10,000 per month savings to the property.
- Working with the Oklahoma County Assessor to lower the carried value of the property to near its appraised value. This will result in a tax savings of over $500,000 for 2009.
- The re-negotiation of the property cleaning contract reduced costs $4,500 per month.
- Upon takeover of the property, the prior year expense reconciliations had not been completed or billed. Billings totaling over $200,000 were sent out within our first 45 days and the current year billings were billed on time.
- Communications with lenders/ownership as been a focus: in addition to a monthly financial package, a detailed operational update has been completed at least monthly and periodic conference calls were held as needed.
- Within the first 30 days of management, the following items w ere completed: an assessment of the property's physical condition; review and evaluation of staff; an energy management report and recommendations; negotiation and placement of property insurance; development of a renewal plan; identification of liabilities and ongoing litigation; an assessment of the property's tax position; and a detailed property disposition analysis.
Overall, the above actions saved the property aproximately $62,000 per month in expenses in addition to the over $500,000 savings in taxes anticipated, and the prompt billing of expense reconciliations of over $200,000.
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