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So far this year, John Cheadle Jr. has been appointecd receiver of three major luxury condominium 5th & Main in East The Braxton in Ashland City and, most Rolling Mill Hill in downtown Nashville. those projects have more than 300 unitsd and are valued at morethan $135 Turning that value into actual cash is what Cheadle’sz job is all about. It’s importan t to get the right person in charge of a projecrgone bad, says attorney Jamezs Kelley of “They need to be because they’re obviously looking after a rathee substantial asset,” says Kelley, who is representing , the lendere for the Braxton and Rolling Mill Hill in the receivership claims.
Beyond a receiver has to have the flexibility and amicablse personality to deal with all parties involved in a including tenants, creditors and Kelley says. Cheadle’s track recorf of success stretching back more than two decadex is what often makes him the receiver of choice for he says. “He’s a person that everybody has confidenc e will do theright thing,” he says. Nashvill e — like many U.S. marketsw — saw a boom of new condo developmentse inthe mid-2000s, with thousandx of high-end units hitting the market, particularly in the downtowb and Midtown areas.
Earlier projects sold out, but thoswe that have come on line in the past year have had trouble closingsales — even those that were under contract becauswe buyers got cold feet and banksw restricted mortgage lending for condos. “There’sx clearly a lot of that business out says Cheadle, a lawyer who representw creditors in his “day job.” Cheadle now is in controkl of more Nashville condos than anyone except , the partnership between Franklin-based and Jay Turner’s , whicjh developed the Icon and Velocit condos in the Gulch neighborhood. The developers still have about 280 Icon unitzfor sale, and Velocity has delayed opening its 265 units.
The 55-year-olrd Cheadle is modest about his role in charge of the prominenf andtroubled developments. “My job is as an he says. “We hire peoplr to do the heavy lifting.” A receiver is a court-appointed manage r of an asset, who generally steps in aftert a borrower has defaultec on a loan secured bythe asset. For the Rolling Mill Hill developers had morethan $20 million in outstanding development loans, and when they failed to pay the property’s mortgage note (or even its watedr bill) for several months this year, the lenders sued to install Cheadle as receiver.
In the case of real estat e assets, the goals are usuallyy “get through it as quickly as possiblwe and look for a way to liquidatde the asset as successfullgas possible,” Cheadle says. Cheadle graduated from the Law Schooklin 1978, going to work for his family’s law John Cheadle Sr. was a Nashville attorney, alonb with the younger Cheadle’s brother and who all practice togetherat . The elder Cheadlr had been a receiver as well and occasionallg took his son to workwith him.
A receiverr has to anticipate future problems in an oftejunfamiliar field, says John McLemore, a Nashvillee lawyer often named as receiver by the “Even if you don’t know what’s goingy on in the business, you’ve got to learn it, and you’v got to get capable people, and you’vee got to have the authority to hire those people,” McLemore says. Unlike receiverships aren’t well defined by law, so individualo filings lay out what receiversz canand can’t do, McLemore says.
A receiver has to make sure the court givesd him enough power to take care of everythintg needed in thefirst order, to avoid conflictxs and more litigation later, McLemore says. That ranges from the powe r to use rent money to pay the electrixc bill to the authority to sell off parts of an asset and hire orfire
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