Hilco Real Estate Creates Group to Acquire REO Assets and Property Loans

Looking to acquire additional as well as different types of properties, Hilco Real Estate set up a new division called to originate, underwrite and acquire assets across a broad range of classes and all stages of financial and operational health, including those in workout, foreclosure and REO.

Ronald Lubin will lead the new group that was recently formed called the Hilco Real Estate Acquisitions Group. Lubin will receive help from Edmund Terry, who will manage the long-term investment portfolio, and Robert Perez who will manage the short-term opportunity investment portfolio.

The focus of the group is to find low-cost-basis opportunities where a substantial upside can happen through Hilco’s distressed debt, asset and property management knowledge. The HREAG seeks to acquire or finance assets in the form of fee simple transactions, distressed mortgage notes, lease designation rights, distressed bridge loans, DIP loans, sale lease-backs and assets requiring developments.

“Hilco Real Estate has long been an opportunistic buyer of retail, industrial and commercial properties,” said Neil Aaronson, CEO of the Northbrook, Ill.-based company. “The formal launch of our acquisitions group will enhance our ability to originate and structure deals from a broader range of sources, including banks, insurance companies, investment trusts, corporations, individual investors and owners of properties in need of rescue capital.”

Assets will be primarily located in the United States, while acquisition capital will come from various sources, including Hilco and investor partners selected specifically for each transaction.

“We have the experience and resources needed to identify, structure and close transactions, maximize intrinsic asset value, and ultimately market and sell an asset,” Lubin said. “Our targeted acquisitions will primarily focus on industrial and retail. However, we also will look at office, multifamily, mixed use, hospitality and large-scale residential developments. We will seek favorable returns on equity commensurate with the desired risk profile of each investor partner.”