Healthcare REITs Lead the Fundraising Race
NEW YORK CITY—It was an active year for REIT
capital raises, owing in large part to the historically low interest-rate environment and
given the continuation of that happy scenario, at least for the foreseeable future, the
trend is sure to continue through 2013. And
don’t be surprised to see more IPOs.
SNL Financial has revealed its list of top
REIT performers for 2012, and healthcare
REITs clearly dominate the Top Five. In
fact, number one, with $5.6 billion in common, preferred and senior debt raised, was
Healthcare REIT. HCP came in third, having collected nearly $3.3 billion in common
and senior offerings; and Ventas, in the
fifth spot, garnered $2.7 billion, again in
common and preferred.
The other Top Fivers were out of the
healthcare realm, with Simon Property
Group grabbing the number two spot with
nearly $4.3 billion in common stock and
senior debt. AvalonBay Communities came
in fourth, with nearly $3.2 billion in com-
mon stock and senior debt.
Using a Receiver to Enforce and Collect a Judgment
Now that you have obtained a judgment, how do you collect from
the judgment debtor? There are always the traditional methods of
enforcement, such as obtaining a writ of attachment, wage garnishment, filing an abstract of judgment or utilizing the sheriff’s
department to garnish wages or rental income. However, each of
those methods is limited in their scope and
may not provide the desired result, which is the
collection of your judgment.
If you are faced
with a more complex
ment on behalf of the judgment creditor. Assuming the order is
granted, some of the more common tools available to a receiver
are as follows:
Immediate Possession of Real Property. The receiver can immediately take possession of and secure real property being held by the
judgment debtor. In the case of an income producing property, the
receiver can collect the rents and preserve and maintain the property until the judgment is fulfilled, or simply sell the property.
Access to Accounting Records. The receiver can access and
review the accounting and banking records of the judgment
debtor. If the receiver is able to uncover improper cash or collateral
transfers, the receiver can recover those assets.
Seize Possession of Bank Accounts. The order should give the
receiver the authority to immediately freeze and take control of the
judgment debtor’s bank accounts. This is accomplished by simply
serving the bank(s) with a copy of the order.
By Todd D. Donell
Collect Accounts Receivable. If the existing assets will not satisfy
the judgment and the judgment debtor has accounts receivables
from its customers, the receiver can collect the receivables to satisfy
Liquidate the Assets. The proceeds, after payment to any
secured creditors with a priority lien, can be used to satisfy the
Since each case presents unique and unanticipated challenges,
a receiver can also return to court and have the order amended to
include additional provisions and remedies. Unlike the traditional
methods of collecting a judgment, the court-authorized powers of
a receiver can evolve to deal with any unanticipated roadblocks.
However, there are some risks and drawbacks. The first is the
cost. A receiver charges for his/her time on an hourly basis and
there is no guarantee of a recovery.
The second risk a judgment creditor faces when utilizing a
receiver is the possibility of the debtor filing bankruptcy. In the
event of a bankruptcy filing, at a minimum, the creditor will need
to petition the bankruptcy court to allow the receiver to proceed
with his/her collection efforts, and the bankruptcy court may or
may not allow this to happen.
Utilizing a receiver does pose some risks and is not the ideal
remedy for all judgment enforcement actions. However, for the
cases that prove to be more complex in nature, using a receiver,
and the broad based powers given to one, is a great alternative to
the traditional methods of collecting a judgment and can greatly
increase the probability of a successful recovery.
Todd D. Donell is Los Angeles-based executive vice president of
FedReceiver Inc. He may be contacted at firstname.lastname@example.org.
The views expressed here are the author’s own.
Vital Signs...Housing starts could approach one million nationwide in 2013. —Portland Cement Association