Wells Fargo Calls for Court-Appointed Receiver to Take Control of Kravetz-Linked Office Portfolio in San Fernando Valley

Things are going from bad to worse for Norman Kravetz, as Wells Fargo Bank is now calling for a court-appointed receiver to take control of a five-office-property portfolio in the San Fernando Valley. The portfolio, which is spread over 346,800 square feet and includes three properties in Agoura Hills, is facing default on its commercial mortgage-backed securities debt.

Kravetz, a principal at Realty Bancorp Equities, is on the hook for around $70 million in debt, which is more than the portfolio is currently worth. This latest development comes after Kravetz defaulted on the CMBS debt this summer, leaving Wells Fargo and other commercial mortgage-backed securities holders scrambling for a solution.

The push for a court-appointed receiver is being led by a Wells Fargo Bank unit on behalf of the CMBS holders. This move would effectively give control of the portfolio to a third party, who would be responsible for managing and potentially selling the properties to recoup the debt. This is just one of many challenges facing Kravetz and his Kravetz-linked entities.

According to sources, the portfolio's properties have been struggling to maintain occupancy and generate enough income to cover the debt payments. One of the properties, located in Agoura Hills, was even home to the now-defunct Los Angeles Daily News.

Despite the mounting pressure from Wells Fargo and other CMBS holders, Kravetz has not yet given up control of the portfolio. It remains to be seen how this situation will unfold and whether Kravetz and his entities will be able to successfully navigate