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BrokerSavant presents: Hilco & Dealing With Distressed Real Estate


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This lunchtime webinar covered the ins and outs of distressed Commercial Real Estate, specifically the challenges facing Economic Development Organizations, Municipalities and the Real Estate Brokers serving their areas. Our two speakers from Hilco, the company behind newsworthy corporate revamps and bankruptcies like Linens ‘n Things and Hostess, Lerry Knox and Navin Nagrani, discussed what distressed real estate is and how it can be monetized, whether in the public sector or private enterprise.

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BrokerSavant presents: Hilco & Dealing With Distressed Real Estate

  1. 1. HilcoLunch + Learn WebinarApril 25, 2013You’re Sitting On Distressed Real Estate….Now what?Hosted by:Lerry Knox Navin NagraniCEO, Hilco Innovation SVP, Hilco Real Estate1More Value Created More Ways®
  2. 2. HilcoAsset Disposition Services Asset and EnterpriseValuation ServicesAsset Acquisitions andInvestments♦ Tangible and Intangible AssetAppraisals– Inventory– Machinery & Equipment– Real Estate– Accounts Receivable– Intellectual Property♦ Enterprise Valuations♦ Valuations forTax, Reporting, Accountingand Compliance Requirements– FAS 157, 141, 142– IFRS Compliant Valuations♦ Insurance Valuations♦ Ad Valorem♦ Asset Verification and Tagging♦ Estate Settlement Valuations♦ Valuation Dispute LitigationSupport♦ Monetization Services for AllCategories of Industrial Assets– Webcast, Online and On-siteAuctions– Sealed Bid Tenders– Private Treaty Sales♦ Real Estate Brokerage andLease Restructuring♦ Industrial and Retail AssetDisposition Services– Inventory– Machinery and Equipment– Fixtures and Equipment♦ Intangible Asset Disposition– Trade Names, Service Marksand Other Intellectual Property♦ Company and Facility WindDowns♦ Surplus and Redundant AssetDisposition in M&ATransactions♦ Acquisitions of Surplus andUnderperforming Tangible andIntangible Assets to ProvideImmediate Liquidity– Cash, upfront– Guarantees– Corporate Trade Credits♦ Real Estate Acquisitions♦ Private Equity Investments– Retail Companies– Consumer ProductManufacturers– Iconic Consumer Brands♦ Special Situation DebtFinancing♦ Distressed Debt Acquisition– Corporate Debt– Real Estate DebtMore Value Created More Ways®
  3. 3. HilcoHilco Delivers Results:♦ Conducted over 1,800 industrial asset disposition projects♦ 400+ Fortune 2000 clients, across all industries♦ Sold assets from 53 countries into more than 60 countries in 2012♦ Asset sales will exceed $1 billion in 2012♦ Disposition of over 200 million square feet of industrial, office and retailproperties♦ Appraised and repositioned industrial, commercial and retail real estateworth nearly $4.0 billion, and restructured over 35,000 leases♦ Market leader in recovery through market making for IP, patents and otherintellectual property♦ Delivered nearly 20,000 appraisals - values in excess of $200 Billion♦ Converted over $150 billion of excess inventory to cash.3More Value Created More Ways®
  4. 4. HilcoHilcoClients Hilco Has Served Across the Globe:4
  5. 5. HilcoDiscussion Points• What is Distressed Real Estate• Distressed Real Estate vs. Distressed Situations• Uniqueness with real estate vs. other assets• Vehicles to Monetize Real Estate• Traditional Brokerage• Sealed Bid• Private Treatise• Open Out-Cry• Online• Understanding Where the action and deals are5More Value Created More Ways®
  6. 6. Hilco6More Value Created More Ways®Opportunities And Challenges:The Bankruptcy ArenaOpportunities• Buy assets at discounted prices: as-is/where-is• Public process but very few players usuallyparticipate• More municipalities to restructure?Challenges• Uncertainty of outcome (Reorganize? Liquidate?)• Difficulties in getting hired as an consultant/broker• Lots of players at the table – differentobjectives/goals• Lack of financing options
  7. 7. Hilco7More Value Created More Ways®Backdrop:The Government ArenaMunicipalities today face significant challenges reconcilingincreased demands for services with declining revenue and taxbase, escalating labor and pension costs, and limited access tocapital.No communities are immune; and, as state and localgovernments strain to meet budgetary requirements, everyelected official and senior administrator should be vigilant insearching for opportunities to assure their constituencies thatpublic service delivery is a priority, and will not be put at riskbecause available operating revenues are insufficient to satisfythe cost of those services.
  8. 8. HilcoWith mounting financial pressures, some municipalities arealready confronting the possibility that they will faceinsolvency in the near term. Yet other municipalities areconcerned that their operating costs could someday soonoutpace their revenue sources. With this backdrop,municipalities need to explore how best to manage theirmost valuable asset: their real estate portfolio.More Value Created More Ways®Backdrop continued:The Government Arena
  9. 9. HilcoMunicipalities have extensive real estate portfolios. These portfolios consistof education, culture, sport, recreation, care, civil service offices and socialhousing. Allow for opportunities to drive value from the following:1. The need to professionalize real estate activitiesMany municipalities allow departments and agencies manage their own REportfolios. Real estate is not a principal task for these departments, as a result ofwhich they are often not capable of undertaking real estate managementprofessionally. If the city is to exploit the advantages of scale and the potential ofthe real estate optimally, the scope and complexity of the portfolios necessitatemeticulous harmonization with other portfolios in the city, as well as professionalmanagement and portfolio management.2. Real estate as a cost-cutting instrumentIn the current economic environment, municipalities are looking carefully at theirexpenditure and assets. Most municipalities have come to believe that selling offmunicipal real estate would strengthen the municipalitys financial position and areactively looking for strategies to monetize this asset class.More Value Created More Ways®Opportunities:The Government Arena
  10. 10. Hilco10More Value Created More Ways®Navin Nagrani Lerry KnoxHilco Real Estate, LLC Hilco Innovation Solutions, LLC847-504-3218 lknox@hilcotrading.comAdditional questions? Please contact: