LNR Property LLC Announces New Co-Chief Executive Officers and New Investment Management Platform

Company to Launch $200 Million Fund Under New Investment Management Platform

Oct 12, 2010, 15:20 ET from LNR Property LLC

MIAMI BEACH, Fla., Oct. 12 /PRNewswire/ -- LNR Property LLC has named two new senior executive officers to lead the diversified real estate services and investment company and the world's largest commercial real estate mortgage special servicer. The Company also announced the launch of a new $200 million fund as part of its new Investment Management Platform (IMP).

New CEO Team

Justin Kennedy, a 24-year veteran of Wall Street and the real estate development business, has assumed the position of co-chief executive officer effective immediately, with responsibility for the Company's strategic direction, current investment activities and the Company's new Investment Management Platform.

Tobin (Toby) Cobb, a 22-year Wall Street veteran with commercial real estate capital, lending and loan servicing expertise, has assumed the position of co-chief executive officer effective immediately, with responsibility for broad oversight and management of the existing LNR Property businesses.

LNR's diversified real estate, investment, finance and management businesses span many sectors, including its dominant $200 billion special servicer and asset management platform. Led by Vornado Realty Trust; iStar Financial Inc.; Cerberus Capital Management; and Oaktree Capital Management, the Company completed a comprehensive balance sheet recapitalization in July 2010.

"Justin and Toby are a proven team and the right executives to take the helm of the recapitalized Company," said Michael Fascitelli, president and chief executive officer of Vornado Realty Trust.  

"As two of the most experienced commercial real estate professionals in the industry, we are confident that Toby and Justin will be able to leverage their extensive experience and relationships to strengthen the Company's unique special servicing capabilities and create differentiated investment opportunities in an evolving real estate marketplace," added Jay Sugarman, chairman and chief executive officer of iStar Financial.

Prior to joining LNR Property, Mr. Cobb had a successful 10-year career at Deutsche Bank (DB), where he most recently served as managing director on special assignment to the Office of the CEO of DB Americas, focusing on the Emergency Economic Stabilization Act of 2008. Immediately prior to this assignment, Mr. Cobb was Co-Head of the U.S. Commercial Real Estate Business at DB. Prior to joining DB, Mr. Cobb spent five years in the CMBS Group at Donaldson, Lufkin & Jenrette (DLJ) and four years in the RTC/FDIC Loan Acquisition Groups at Citigroup.

Prior to joining LNR Property, Mr. Kennedy had a successful 11-year career at DB, where he was a managing director and Global Head of Real Estate Capital Markets. As a founding member of DB's $30 billion+ global commercial real estate business in 1998, Mr. Kennedy led trading, structuring, syndication and risk management for the business. Prior to DB, Mr. Kennedy was vice president and Head of CMBS Trading at Goldman Sachs, where he led CMBS and GSE loan trading, structuring and syndicate.

"Justin and Toby's careful approach to investment and risk management give us great confidence as they take the helm at LNR to leverage its unparalleled loan servicing, asset management and investing capabilities," said Bruce Karsh, president and portfolio manager at Oaktree Capital Management.

The Company said that LNR's former chairman and chief executive officer Thomas Hughes has resigned effective immediately. Mr. Hughes has agreed to serve as a non-employee advisor to the Company's Board, serving at the pleasure of the Board.

"We want to thank Tom for his leadership and guidance through the recent and successful re-capitalization of the Company," said Lenard Tessler, managing director at Cerberus Capital Management. "We look forward to Tom's assistance and insight as we move to the next phase of the Company's evolution."

New Investment Management Platform

Concurrent with the hiring of Mr. Kennedy and Mr. Cobb, the Company announced it will launch a new Investment Management Platform, focusing on investing in those areas of LNR's core competence within the commercial real estate debt space. The new fund will be capitalized with $200 million from the Company's equity sponsors.  

"Having acquired, built and run origination and servicing platforms such as Berkshire Mortgage for Deutsche Bank, makes Toby and Justin unique among their peers in the industry," said Michelle Felman, executive vice president at Vornado Realty Trust.

"The significant new capital committed by its sponsor group, including the $200 million for the new Investment Management Platform, reaffirms the sponsors support and belief in the Company's people, platform and valuable franchise," said Todd Liker, managing director at Oaktree Capital Management.  

"LNR is clearly the top franchise in the commercial real estate special servicing and asset management businesses. Toby and I have enjoyed long relationships with the Company and its sponsors and we are fortunate to be asked to lead this great business. We are excited to build on LNR's market-leading capabilities and drive performance for our existing clients and our new investment initiative by creating thoughtful, differentiated investment strategies even in this challenging market," said Mr. Kennedy. "LNR has the best people in the space and we plan to continue to deliver first-class services to all our clients and above market returns to our investors and sponsors," added Mr. Cobb.

Contact:  LNR Media Line: (305) 695-5426