FAQ

Q: Why chose Hilco Real Estate Sales over a larger brokerage firm?

A: Choosing Hilco Real Estate Sales (HRE) means opting for a boutique experience that combines the best of both worlds: the personalized attention of a smaller firm with the expansive expertise often associated with larger firms. Unlike the broad-brush approach that can sometimes characterize the giants of the industry, HRE offers a hands-on, tailored service where every client’s needs are met with a bespoke strategy that leverages our diverse skill sets.

A: Our team is not just a group of professionals; it’s a dynamic collective of advisors, marketers, developers, investors, financiers, and legal experts, all of whom bring their specialized knowledge to bear on every transaction. This multidisciplinary approach ensures that we navigate the complexities of real estate with a nuanced understanding that larger firms may not provide. At HRE, we pride ourselves on being agile and responsive, qualities that allow us to adapt quickly to market changes and align closely with our clients’ objectives.

Moreover, our effective and proven processes are designed to maximize value within defined timeframes, setting us apart in our ability to deliver results with speed and precision. The depth of our market intelligence, coupled with a global reach that still maintains a local touch, positions us to offer a real estate experience that is as unique as the assets we represent. So, when you choose HRE, you’re not just selecting a firm; you’re partnering with a dedicated ally committed to curating a strategic pathway to your real estate goals.

Q: Does Hilco Real Estate Sales handle only distressed asset sales?

A: At Hilco Real Estate Sales (HRE), our expertise encompasses the full spectrum of real estate assets, from incredibly healthy to those facing distress. Our approach is not confined to a singular category of property; rather, we apply our deep market knowledge and strategic finesse to every transaction, regardless of the asset’s status. This broad capability allows us to serve a diverse clientele, each with unique objectives and requirements.

We understand that the journey of each property is distinct—some assets command the market with strength, while others require the nuanced care that stems from our experience with complex, distressed scenarios. It is in this versatility that HRE excels, offering a comprehensive suite of services tailored to the specific situation of each asset. Whether navigating the sale of a high-performing property or steering a troubled asset towards a value-maximizing resolution, our team is adept at identifying and executing the optimal pathway to success.

Our firm’s robust infrastructure and innovative methodologies empower us to handle the intricacies of various asset classes with equal proficiency. From crafting a competitive sale process that attracts a global pool of investors for prime properties to implementing strategic recovery tactics for those in distress, HRE is committed to achieving the best possible outcomes. We pride ourselves on our ability to deliver exceptional service and results, regardless of the asset’s condition, ensuring that every sale is a testament to our clients’ trust and our real estate acumen.

Q: What is the range of asset values Hilco Real Estate Sales sells?

A: Hilco Real Estate Sales’ portfolio of transactions showcases a diverse array of asset values, reflecting our adaptability and expertise across a broad spectrum. We proficiently manage sales for assets and portfolios ranging from those valued in the multi-billion-dollar echelon to those as modest as five million dollars. This range is a testament to our ability to tailor our approach to each property’s unique value, ensuring that we provide the highest level of service and strategic insight, regardless of scale.

While our primary focus encompasses assets valued at five million dollars and above, our commitment to excellence and client success also leads us to consider properties below this threshold on a case-by-case basis. This flexibility allows us to extend our bespoke services to a wider range of opportunities, ensuring that each transaction, irrespective of its size, benefits from our comprehensive expertise and the full extent of our strategic capabilities.

Q: What is the deal size minimum for Hilco Real Estate Sales?

A: While our primary focus encompasses assets valued at five million dollars and above, our commitment to excellence and client success also leads us to consider properties below this threshold on a case-by-case basis. This flexibility allows us to extend our bespoke services to a wider range of opportunities, ensuring that each transaction, irrespective of its size, benefits from our comprehensive expertise and the full extent of our strategic capabilities.

Q: What does Hilco Real Estate Sales’ “accelerated timeline” look like?

A: Hilco Real Estate Sales’ “accelerated timeline” is a hallmark of our strategic approach, designed to optimize both efficiency and effectiveness in the sales process. This timeline typically unfolds within a meticulously planned 90-day period, a testament to our ability to mobilize swiftly and execute transactions with precision.

Here’s a breakdown of what this timeline typically looks like:

Initial Assessment and Strategy Development (Days 1-15): The process begins with a comprehensive assessment of the asset, including its market position and potential. During this phase, we develop a tailored strategy that aligns with the client’s objectives and the asset’s unique characteristics.

Marketing and Exposure (Days 16-60): This period is dedicated to our robust marketing efforts. Leveraging our diverse team of professionals, we employ a range of techniques – from digital marketing to targeted outreach – ensuring that the asset garners significant attention from potential buyers. Our marketing cycle is rigorous and encompasses various channels, ensuring maximum exposure.

Bidder Engagement and Sale Process (Days 61-90): As we approach the final phase, our focus shifts to engaging with potential buyers and managing the delicate sale process. This includes hosting property viewings, facilitating due diligence and orchestrating competitive bidding environments. The culmination of these efforts typically leads to a date-certain sale, where the asset is sold to the highest bidder within this accelerated timeline.

Throughout this entire process, our hands-on approach and relationship-based sales strategies ensure that every step is executed with utmost care and professionalism. This truncated timeline does not sacrifice quality or thoroughness; instead, it exemplifies our commitment to delivering high-value outcomes in a timely manner.

Q: As a practitioner, when is the best time to engage Hilco Real Estate Sales?

A: The optimal time to involve Hilco Real Estate Sales (HRE) in a case is at the soonest possible stage. Early engagement allows for a prompt and accurate valuation of assets, which is crucial in shaping an effective transaction strategy. This approach is particularly important in real estate cases that often operate under stringent time constraints, whether due to legal frameworks or market dynamics.

By involving HRE initially, clients benefit from our comprehensive expertise in navigating these time-sensitive scenarios, ensuring compliance and strategic foresight. Early collaboration also maximizes the potential for favorable outcomes by allowing us to apply our philosophy of ‘more options, better solutions’ effectively. In essence, the sooner we are engaged, the more opportunity there is to leverage our full suite of resources and expertise to the client’s advantage.

Q: My debtor believes they have a buyer for the property and wants to wait to see if they can set up a sale. What should I do?

A: Experience has shown that such strategies often fail. Many prospective buyers may prolong negotiations to ultimately acquire the commercial real estate (CRE) asset at a significant discount. When faced with this scenario, the most effective approach is to engage Hilco Real Estate Sales as soon as possible so we can facilitate a competitive sale process, ensuring that all interested parties are motivated to offer their best terms promptly, inclusive of the debtor’s prospective buyer.

Q: What does Hilco Global do and how does it relate to Hilco Real Estate and Hilco Real Estate Sales?

A: Hilco Global and its more than 20 specialized business units deliver an extensive suite of valuation, monetization, advisory and capital solutions that help businesses, their lenders and advisors around the world identify and manage through the critical moments of inflection that inevitably occur over the course of every business’ lifecycle. A comprehensive range of financial services enables the delivery of highly customized and proven-successful solutions to resolve complex and stressed situations and enhance long-term enterprise business value for clients.

Hilco Real Estate is one of the operating companies of Hilco Global, known for providing expert advisory, transaction and investment services in the real estate sector. Brief descriptions of our four focus areas are as follows:

Brokerage & Disposition Services: Also known as Hilco Real Estate Sales, this pillar of business focuses and excels in asset sales, employing innovative marketing and time-specific sales structures to maximize returns.

Lease Advisory Services: This pillar of business focuses on improving cash flow and business value for clients through lease repositioning, renegotiation and termination, with extensive experience in retail, restaurant and office asset types.

Asset Management Services: This pillar of business offers a customizable platform for asset management, focusing on the strategic acquisition, repositioning, redevelopment and sale of real estate assets.

Capital Deployment | Investments: As buyers, partners and lenders, this pillar of business engages in short-term real estate investments, offering solutions like bridge loans, sale-leaseback transactions and distressed debt buys, tailored to the needs of a volatile market.

Hilco Real Estate’s extensive experience in the above areas provides an unparalleled depth of knowledge and expertise to the benefit our clients. Our diverse team of professionals includes advisors, financiers, lawyers, marketers, developers, receivers and investors, thus offering a unique perspective and approach to helping you meet your real estate goals.

Q: How do market conditions impact distressed real estate investments?

A: Market conditions significantly impact distressed real estate investments in various ways, some of which are listed below. Hilco Real Estate Sales (HRE) remains consistently in-tune with these trends as well as those in the overall economy to help clients make the most informed decisions on behalf of their asset or portfolio at any given time.

Economic Cycles: During economic downturns, distressed real estate assets tend to increase as more property owners struggle with financial constraints. Conversely, in a robust economy, the availability of such investments might decrease and competition for these assets can intensify, driving up sale prices.

Interest Rates: Higher interest rates can lead to increased borrowing costs, causing challenges for property owners to service debt. This situation can lead to more distressed sales. On the other hand, low-interest rates can make financing cheaper, allowing investors to acquire and rehabilitate distressed properties more feasibly.

Real Estate Market Trends: The health of the real estate market in specific sectors (residential, commercial, industrial) and locations significantly affects distressed real estate investments. For example, an oversupply in the commercial sector can lead to more distressed assets in that area.

Investor Sentiment: The level of investor confidence can influence the demand for distressed properties. In times of uncertainty, investors might be more cautious, leading to lower prices for distressed assets. Conversely, when investor sentiment is positive, there can be more competition and higher prices for these investments.

Regulatory Environment: Changes in regulations, such as tax laws or zoning rules, can impact the attractiveness and potential profitability of distressed real estate investments.

Availability of Capital: Access to capital plays a crucial role. In a market where funding is readily available, there may be more buyers for distressed properties, potentially driving up prices. Conversely, in tighter credit markets, the lack of liquidity can lead to lower prices and potentially higher yields for those who can afford to invest.

Global Events: Events like pandemics or geopolitical issues can suddenly alter market dynamics, affecting property values and the availability of distressed assets.

Understanding these and other market conditions is crucial for investors in distressed real estate, as they can significantly influence risk and return profiles. Lean on HRE to help stay informed before choosing to invest/divest within this sector. Our team of experts regularly conducts thorough due diligence and market analysis across the country and can provide market intelligence in real time, anytime.