Rob Verrone and Christopher Herron

Retail rescues have been few and far between in recent years, which is why Iron Hound Management’s work to rescue and restructure Hudson’s Bay — an $846 million 34-asset commercial mortgage-backed securities restructuring and single-asset, single-borrower, or SASB, deal that capped an 18-month saga — was so significant. Recognized for its expertise in restructuring and distressed assets, the restructuring, completed in October 2021, showcased the firm doing what it does best. 

“It was a very large restructuring of retail assets, some of which had lost a tenant completely due to the Lord & Taylor bankruptcy, but it showed a very strong commitment to retail,” said Christopher Herron. “A par restructuring where the retailer invested nearly $100 million isn’t all that common.” 

Throughout last year, Iron Hound notched $5.8 billion in originations across 48 deals, split evenly between restructuring and debt/equity placement, including a recapitalization of Brooklyn’s Industry City and a $320 million refinancing of 850 Third Avenue for the Chetrit Organization. If 2021 was a transitional year, Iron Hound straddled both sides with its unique business model, fielding numerous restructuring opportunities while riding the upswing via debt/equity placement business and advisory brokerage deals that “don’t have any hair,” Herron said. The two sides of Iron Hound will help keep the firm well-positioned as the country enters a new period of uncertainty as it comes out of the pandemic. 

“There seemed to be a lender for every deal,” Herron said. “But going into 2022, an increased interest rate environment is something we’ll have to keep our eyes on. Deals are much more expensive than they were eight weeks ago. 2021 was a good year, markets opened up and interest rates remained low, and, for the most part, deals kept their heads above water. If inflation takes over, if growth slows down, there could be some problems, but we’re well-hedged to take advantage of that.” —P.S.