Receivership Services
Preserve, stabilize and improve the value of your commercial real estate assets
At Hilco Real Estate Sales (HRE), our distressed real estate experts know how to solve a variety of problems throughout the entire commercial real estate (CRE) lifecycle. We are a diverse team of trusted advisors, spanning a host of different backgrounds, to help secure, maintain and right-size operations for individual assets and portfolios.
Our receivership team works together with federal, state, county and local agencies as well as operators, property managers and leasing teams to do everything within our power as an agent of the court to maintain and improve the value of a receivership sale.
Our decades of experience have made us the trusted receiver of CRE collateral throughout many assignments and asset classes. Whether the properties in question are from a technical, monetary, or maturity default, bankruptcy filing, partnership dispute or a consensual receivership, we are ready to help you stabilize your commercial real estate assets and reduce your exposure while discussing alternative paths forward to maximize the recovery.
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Our Approach
Understanding that timing is critical, HRE’s receivership team works quickly to create and implement a specific strategy to take control of your asset and bank accounts, while ensuring all stakeholders are informed and aware of the receiver’s appointment to mitigate any losses.
We understand that no two assets are alike and that every assignment should be deeply reviewed on a case-by-case basis to create the most customized, cost-effective plan to maintain and improve value. HRE’s experts are well-equipped to navigate challenges and deliver effective, value-add solutions in our approach, which include:
- Assuming streamlined control of assets
- Consistent communication with stakeholders
- Risk mitigation
- Property & asset valuation
- Capital & construction project advisory
- Data management
We are a one-stop solution for distressed commercial real estate assets, providing market expertise with best-in-class operational support
Our Capabilities
HRE has facilitated the recovery and preservation of hundreds of millions of dollars on behalf of lenders with non-performing loans. We are unmatched in our operational expertise and ability to manage the most complex portfolios, repositioning troubled assets for the highest return in value and understanding how to properly time the market. Our clients’ exposure ranges from balance sheet loans to securitized products.
We work closely with Special Servicers, within Commercial Mortgage-Backed Securities (CMBS), Commercial Real Estate Collateralized Loan Obligations (CRE CLO) and Single Asset Single Borrower (SASB); Our skill set extends to the balance sheet sector, including Life Insurance Companies; National/Regional/Community banks; Private Equity Funds and Bridge lenders on a regular basis.
Clients seek our advice on some of the most complex assignments, ranging from a contested bankruptcy filling to a stipulated appointment. We have experience across a variety of asset classes and projects with a number of receivers throughout the country.
Sample assignment and asset types
HRE is deeply experienced and equipped to help in a number of situations. Below are tangible examples of current and previous assignments in which our team has been involved:
- Stabilizing Low Occupancy Building After Monetary Default
HRE was appointed receiver of a one million-square-foot office building in downtown Chicago on behalf of a life insurance company due to a monetary default. Low occupancy stemming from the COVID-19 pandemic, work-from-home trends, tenant rollover and lack of renovation plans required a receiver to take over day-to-day operations. HRE oversaw all efforts with local property management and leasing agents to stabilize the asset. Additionally, through our team’s oversight, this property worked with Cook County and the City of Chicago to apply the newly initiated Tax Increment Financing (TIF) program for office to multifamily conversions. This asset has successfully been awarded TIF Funding by the mayor of Chicago. The project is ongoing.
- Office Leasing After Monetary Default
A CMBS special servicer sought the appointment of a receiver on a 125,000 square-foot office due to a monetary default. As agent for the receiver, our team led the leasing and stabilization of the asset. Moreover, through scrupulous research within the loan documents and lease provisions, HRE successfully extended the duration and expanded the footprint of an existing tenant into a vacant space. The property was actively marketed for sale until one of the owners, through a Tenancy in Common ownership structure, filed Chapter 11 bankruptcy, at which point the receivership ended.
- Multi-Location Restaurant Disposition
On behalf of a regional bank’s Real Estate Owned (REO) portfolio, HRE oversaw all aspects of the disposition process, including interviewing local brokers, soliciting broker opinions of value, selecting the most qualified candidates and managing the sales process. Out of 27 properties, 24 sold within 24 months, each within a 60-day closing period.
- Office Property Dispositions After Bankruptcy
An institutional bank sought the appointment of a receiver after the borrower filed Chapter 11 bankruptcy. The collateral was over 450,000 square feet and included five industrial/flex office properties located throughout Indiana. The motion to appoint a receiver was granted and HRE oversaw the stabilization of these assets. We retained and managed the local property management team, hired leasing agents, leased up and successfully managed the disposition process of four of the five assets. The one unsold asset was leased by the Indianapolis SWAT team for emergency response training.
- Newly Appointed Receiver for Air Retail Center
Originally due to a monetary default and subsequently due to a Chapter 11 bankruptcy filing, the CMBS special servicer sought to replace the prior receiver for a 42,000 square-foot open air retail center in Durango, Colorado. The HRE team was awarded the assignment and oversaw all aspects of the receivership, including managing the property, driving leasing activity for both renewals and new leases as well as stabilizing the asset.
Following the lender’s foreclosure of the asset and dismissal of their receivership, our team was retained as an agent to the property manager to continue to manage, maintain and lease the asset on their behalf. Occupancy upon appointment was 54% and following dismissal was leased up to 78%.
Want to speak with a member of our Receivership team?
Contact us