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Hilco Real Estate Launches Group to Service Deeply Distressed Real Estate Loans and REO Assets

Servicing Industry veteran, Jerry T. Hudspeth, has joined Hilco as Chief Executive Officer of the new group. Joining Mr. Hudspeth on the HREMAR leadership team are Ronald M. Lubin, Edmund H. Terry and Michael Tsandilas.

Hilco Real Estate CEO, Neil Aaronson, said, "We've assembled a remarkable team of real estate professionals, who probably know more about managing deeply-distressed assets and maximizing recovery value than anyone. Jerry Hudspeth and his colleagues will have the full resources of Hilco Real Estate and the broader Hilco organization behind them to bring clients an elevated level of serving on their troubled assets."

Through a platform of specialized services and experts who understand the complex process of resolving deeply-distressed assets, HREMAR will conduct property valuations and develop and execute strategic resolution plans for each asset in a distressed portfolio. The group will manage all financial, legal and other compliance processes as well as provide all necessary loan and property management services. Each property will be directed through a workout or resolution process, which could include foreclosure, receivership or bankruptcy. Where a resolution requires a disposition process, HREMAR will provide traditional brokerage and auction services.

Jerry Hudspeth has 25 years of financial services industry experience, which includes 14 years as President and CEO of Portfolio Financial Servicing Company (PFSC). Established in 1992, PFSC was formed to manage and service a $360 million securitized real estate portfolio beneficially owned by The Travelers Company, The Hillman Company and Parrish Investments. While at PFSC, Mr. Hudspeth created and developed a portfolio management and servicing model still being used by the company. In that regard, he worked closely with rating agencies, monoline insurers and major lenders and trust groups to establish industry portfolio management and servicing standards, and to evolve requirements for information and data security for portfolio securitizations and master servicing.

PFSC was acquired in 2000 by Bank of America and, by 2005, under Mr. Hudspeth's leadership, PFSC had grown portfolio assets under management to over $18 billion. Prior to joining PFSC, Mr. Hudspeth served in senior leadership positions with several public and privately-held U.S. companies. He also gained significant international experience, having been responsible for operating companies in Japan, Malaysia, China, England, France, Germany, and Italy.

Ronald M. Lubin, a senior executive with Hilco Real Estate, joined Hilco in 2008. He had been Managing Director of Crystal Capital, where he led the real estate debt and equity investment business. Previously, for 24 years, he been in various senior level real estate finance groups within Bank of America and its predecessors, including Shawmut Bank where Mr. Lubin ran workout and OREO.

Edmund H. Terry also joined Hilco Real Estate in 2008 as a senior executive, coming from Crystal Capital where he, too, was a Managing Director. Earlier, Mr. Terry had been with NewStar Financial, where he was responsible for commercial real estate structured product origination and underwriting. He had also been with OneAmerica Financial Partners, Fleet Bank and Shawmut Bank, where he was co-head of the commercial real estate workout division.

Michael Tsandilas, who has 15 years of commercial real estate loan origination and underwriting with major lenders, including Bank of America, TriSail Capital and Anglo Irish Bank, will manage the execution of workout strategies and asset management activities of HREMAR.

"There is a large void in the real estate asset management market that Hilco Real Estate Managed Asset Resolutions will fill," said Jerry Hudspeth. "Deeply-distressed assets need specialized attention and unique skills to maximize value," he added. "Traditional servicers and lender workout groups cannot afford, or are often simply unable to properly service these assets. We can, because our business model is built on a core understanding of how to monetize distressed assets. Hilco has been doing it for 25 years and is a world leader in the field."

Ron Lubin added, "Our approach to lender workout groups and loan servicers involves a cooperative effort to identify the most troubled assets in a portfolio and parse them. Our group will then devise and execute appropriate strategies on an asset-by-asset basis, leading to the best end result possible."

Ed Terry stated, "This model ensures that lender workout groups and servicers can focus on those assets in a portfolio that best fit their core strengths. It will enable them to transfer to Hilco the most distressed assets, for which they have neither the expertise nor willingness to commit resources. We believe that bifurcating a portfolio using this approach will be most efficient and a win-win for everyone."

Hilco Real Estate Managed Asset Resolutions is a unit of Hilco Real Estate, LLC [www.hilcorealestate.com]. Based in Chicago, the company helps businesses improve leverage and cash flow by repositioning and restructuring their real estate commitments. The company's focus is to optimize value in the shortest period of time. Core competencies include strategic advisory and consulting services, owned portfolio disposition, lease portfolio sales/assignments, lease termination, lease renegotiation, leasing/subleasing, sale of non-core owned assets, sale/leaseback transactions, and fee and appraisals for leased and owned assets. HRE is a unit of Hilco Trading, LLC, [www.hilcotrading.com] a world leader in valuation, monetization and advisory services involving all classes of tangible and intangible assets.

Hilco Real Estate, LLC
Richard L. Kaye
Executive Vice President
847-418-2711
rkaye@hilcotrading.com