Shreveport Tenants Relieved as Regions Center Gets New Property Management
Shreveport, La. – A cloud of uncertainty that hung over the Regions Center seems to be lifting, much to the relief of tenants in the commercial office complex. Just last week, a federal magistrate granted a request from the lender, Wilmington Trust National Association, to appoint Trigild Property Management as the new receiver for the property. This move is expected to bring stability and restore much-needed management to the building’s finances.
A Rocky Road for Regions Center
The Regions Center, which encompasses two towering commercial buildings on the 300 block of Texas Street in downtown Shreveport, has been under pressure since mid-August. Things took a turn for the worse when local utility provider, SWEPCO, posted alarming signs on the entrance doors indicating that the electricity would be cut off on August 26 due to unpaid bills. As it turned out, the owners, an investment trust linked to the California-based Hertz family, owed a staggering $455,000 for electric service, with a chunk—around $366,000—over 90 days overdue.
Thanks to an intervention from Wilmington Trust, that bill was recently settled to avoid shutting off the lights. However, it’s worth noting that this payment didn’t come from the Hertz family but rather from the lender in an effort to “preserve and protect the property.”
Concerns Grow Over Utility Bills
Unfortunately, the issues didn’t stop there. Court documents filed on September 18 revealed that CenterPoint Energy also issued a disconnect notice for unpaid natural gas invoices. Security services were on the brink of leaving due to non-payment, adding to the anxiety swirling around the property. Additionally, a spokesperson from the Shreveport Water and Sewerage Department confirmed that the Hertz family was behind on over $13,000 in water bills, though that had not yet reached the point of cut-off.
Local businesses have also expressed concerns, claiming that they are owed money by the Hertz family, further complicating matters.
A New Hope
Fast forward to September 20, just two days after the initial court filing, and the tension eased as a federal magistrate approved the appointment of Trigild. This company, headquartered in Delaware, comes highly regarded with extensive experience in managing commercial properties. For tenants like Mark Sealy, the president of Sealy Real Estate Services and a longtime occupant of Regions Center, this news is a significant relief.
“Considering the lender has a substantial financial interest in protecting the property’s value, tenants should feel assured,” said Sealy. He believes that the actions taken show a commitment to restoring stability. “They are going to take whatever steps necessary to do so,” he added confidently.
Next Steps for Regions Center
Now that Trigild is on board, what’s next for the Regions Center? Sealy suggests that the lender might either sell the loan or foreclose on the property and put it on the market. “Changing hands would be a good thing,” he noted, expressing concern about potential overvaluations in the current market. Meanwhile, tenants are exploring the idea of forming a consortium to bid for ownership if foreclosure takes place — a savvy idea since it could lead to local stewardship.
Ed Crawford, a tenant for an impressive 34 years, echoed similar sentiments. “We are committed to downtown Shreveport,” he said, clearly not planning to leave anytime soon. His confidence in Trigild’s management suggests better days lie ahead.
Looking Forward
With new management in place and a committed tenant base, the future of the Regions Center looks hopeful. As the dust settles and the bills get paid, the tenants can breathe a little easier knowing that the people managing their workspace have the experience to help restore the center’s standing in the community.
Stay tuned for updates as this story develops, and let’s hope it marks a new chapter in the life of the Regions Center!
