Property managers and agents can put property and assets at risk through simple negligence, mismanagement, or willful actions. Discovery of wrongful conduct can present unique challenges, as property managers and agents may still be in a position to harm the asset, innocent third parties (such as tenants), or the owner’s good will or reputation. These cases require creative strategies, quick action, and steady-handed diplomacy.
- Represented private equity firm that, just prior to selling billion-dollar asset (a retail mall), learned that mall’s managing agent had engaged in embezzlement and commercial bribery involving other mall tenants. After allegations were confirmed through investigation, agent was quietly separated from asset, allowing timely sale of client’s asset.
- Represented private equity consortium in investigation by New York Attorney General concerning alleged misconduct by client’s property manager. Settlement permitted rapid replacement of manager and remediation plan to make tenants whole, while maintaining PE control of asset without third-party monitor.
- Represented private equity firm after managing agent misappropriated funds from investment restaurant. After default notice sent and litigation threatened, agent repaid misappropriated funds and agreed to enhanced internal financial controls over restaurant.
- Represented owner of for-profit Charter School when governmental agency threatened closure for alleged permitting violations. After litigation threatened against agency, agency terminated its enforcement action and issued permit.