JV Forms to Provide Complete Hotel Receivership Services

CHICAGO—Joshua Joseph, principal, and Matthew Tarshis, EVP of Frontline Real Estate Partners LLC; Michael Shindler, president/CEO of Four Corners Advisors Inc.; and Neil Freeman, chairman/CEO of Aries Capital LLC, have revealed that the three Chicago-based firms have formed a joint-venture, Frontline Real Estate Partners: Hospitality Division, to provide a beginning-to-end hotel receivership platform for financial institutions, banks, special receivers and debt fund services throughout the United States, the Caribbean and Canada.

“The hotel market is facing a downturn unlike any we’ve experienced in recent history owing to the global pandemic,” said Shindler of Four Corners Advisors. “Many hotels are shuttered and those that aren’t are operating at desperately low occupancy levels. Hotel owners are finding it necessary to defer loan payments or enter forbearance agreements, all of which are likely to expire before the market can fully recover. This is creating an unprecedented need for financing and receivership analysis, as well as expert guidance on how to best generate maximum recovery for lien holders.”

The new hospitality joint-venture will provide comprehensive and strategic a la carte services from initial evaluations through the conclusion of the potential foreclosure process. Together the principals will provide marketplace analysis, broker valuations, financing services, receivership management, note sales, expert testimony and brokerage and disposition services aimed at hotel, luxury resort and gaming resort properties valued at $5 million to more than $100 million.

“The advantage of the Hospitality Division as a joint-venture lies in the ability to combine our expertise with the relationships we have built over decades across all aspects of the hotel industry,” said Freeman. “For example, Michael and I bring a wealth of knowledge of hotel brands and management companies, between the two of us having worked with at least 50 management companies and every major and not so major hotel brand on both the finance and operation sides. Our talents pair well with Frontline’s full-service real estate platform and direct relationships with the special servicers.”

“By aligning our resources, we ensure our clients get the A-team for every transaction—a seasoned team whose individuals and organizations have owned and managed hotels and commercial real estate, have successfully traversed more than one recession and who can handle complexity,” said Joseph.

“This firsthand experience, combined with our unique and complementary expertise, is a natural fit and enables us to jointly offer a full suite of strategic and customized receivership solutions to our special servicer clients, lenders and other debt servicers during these turbulent times,” added Tarshis.

Joseph is one of the founders and principals of Frontline Real Estate Partners and has consummated real estate transactions, both as a principal and an advisor, in more than 40 states within the United States. He also acts as a court-appointed receiver.

Tarshis brings leasing and property management expertise to the team, specializing in lease negotiations, sales, purchasing, market research and broker valuations. He also acts as a court-appointed receiver for local, regional and national lenders and special servicers.

Shindler, an attorney by education, has led hotel and mixed-use development projects internationally in senior management positions at Mandarin Oriental Hotel Group, Hyatt Corporation, Las Vegas Sands Corp., Hard Rock Hotels & Resorts and now at Four Corners Advisors Inc.