Excerpt of article originally published by Commercial Property Executive Northmarq has completed its acquisition of Stan Johnson Co., a purchase that also includes Four Pillars Capital Markets, a debt/equity intermediary for CRE assets.  Founded in 1985 by its namesake, SJC has grown to become a leading middle-market net-lease investment sales brand and a top 10 U.S. middle-market firm. The company reportedly has seen an approximately 600 percent increase in revenue since 2005.  In recent years, SJC acquired Shane Investment Property Group to help support a growing multi-tenant retail focus, entered the self storage sector, and launched Four Pillars Capital Markets, which secured about $500 million in loan volume during its first year.  FPCM is a key component of the acquisition, according to Northmarq, given FPCM’s alignment with Northmarq’s established debt/equity financing team.  An SJC spokesperson told Commercial Property Executive, “Stan Johnson will remain with the company for several months to aid in the transition.”  Plans for the acquisition had been announced at the beginning of September. Industry experts at that time gave the deal a thumbs-up, indicating that the expanded Northmarq would have a stronger end-to-end investment sales platform and that SJC was not likely to break into the top tier of the net lease investment sales market on its own.  Houlihan Lokey served SJC as its exclusive financial advisor in the deal, with Bass, Berry & Sims PLC providing legal advisory services.  With the addition of SJC and FPCM to its existing multifamily sales platform, Northmarq will now offer services across all major property types, including office, health care, industrial, retail, self storage and multifamily.  The acquisition of the two firms means that Northmarq will now have almost 1,000 professionals across its investment sales, debt/equity financing, loan servicing and fund management operations. The expanded company annually transacts $23 billion in debt/equity volume and $15 billion in investment sales volume and services a commercial loan portfolio in excess of $76 billion. 

The merger provides clients with increased opportunities within all domestic commercial real estate markets  Northmarq, a leader in commercial real estate capital markets, announced today the completion of its acquisition of Stan Johnson Company (SJC), a real estate brokerage and advisory firm that focuses on investment sales across multiple asset classes. The acquisition also includes the purchase of Four Pillars Capital Markets (FPCM), a debt/equity intermediary for commercial real estate assets.  With the addition of SJC and FPCM to its existing multifamily sales platform, Northmarq will now offer services across all major property types, including office, healthcare, industrial, retail, self-storage, multifamily and more.  The acquisition of these two firms means Northmarq will now have nearly 1,000 professionals across its investment sales, debt/equity financing, loan servicing and fund management operations. The expanded company transacts $23 billion in debt/equity volume and $15 billion in investment sales volume annually, and services a commercial loan portfolio in excess of $76 billion.  “The closing of this transaction ushers in a new era for our clients and employees,” said Jeffrey Weidell, chief executive officer at Northmarq. “We’re incredibly pleased with the growth our company has experienced since entering the investment sales space in 2018 and we look forward to continuing that momentum in the years to come.”  Stan Johnson Company was established in 1985 by its namesake founder and has grown to become the #1 middle market net lease investment sales brand and a top 10 U.S. middle market firm. The company has experienced significant growth leading to an approximately 600 percent increase in revenue since 2005.  “Our valued clients have been a singular focus since day one, and they have propelled our growth and diversification during these past few years,” said Stan Johnson, SJC founder. “As we join Northmarq, our clients will continue to receive the same level of superior service they’ve come to expect, while also benefiting from an expanded geographic reach and enhanced service offerings.”  In recent years, SJC acquired Shane Investment Property Group to help support a growing multi-tenant retail focus, successfully entered the self-storage sector and launched FPCM, which secured approximately $500 million in loan volume during its first year. FPCM is a key component of the acquisition given its alignment with Northmarq’s established debt/equity financing team. Houlihan Lokey (NYSE: HLI) served SJC as its exclusive financial advisor, with Bass, Berry & Sims PLC providing legal advisory services.  “This transaction brings together our shared vision and values in a way that helps us better serve our clients’ needs,” said Travis Krueger, chief operating officer at Northmarq.  Northmarq, purchased by the Pohlad Companies in 1999, has grown steadily through a series of acquisitions. From its roots as a life company correspondent, Northmarq has added its complete agency and HUD business, new fund management and investment sales coast-to-coast.  Northmarq’s expansion into investment sales began in 2018 with just a handful of offices focused on multifamily properties. Leading up to the SJC acquisition, Northmarq had grown to 22 investment sales offices in 13 states, with plans to continue expanding this service into every market where it offers debt, equity and loan servicing. 

Northmarq, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of an 817-unit self-storage facility in the Mountain West region of the U.S. Dana Summers of Northmarq represented the seller, a Mesa, Arizona-based developer. The property was sold to Public Storage, a publicly traded REIT, for an undisclosed price.    “The execution by both seller and buyer was flawless, coupled with a relatively quick closing,” said Summers, Senior Director in Northmarq’s Tempe, Arizona office. “The acquisition was a perfect match between buyer and seller, and we were very pleased to broker such a seamless execution between the two parties.”  The property was constructed in 2008 and is situated on 5.62 acres. The facility is located in a growing area, with dense residential population and strong projections for future growth.

Originally published by GlobeSt Self-storage owner and manager Storage Post is receiving $500 million in capital from a fund sponsored by Almanac Realty Investors, a business unit of Neuberger Berman.   The company will use the funds to accelerate its acquisition of self-storage assets in the most attractive markets in the US.  Storage Post’s vertically integrated investment strategy involves acquisitions, repositioning, and development.   Redimere Advisors LLC was exclusive advisor to Storage Post. Ankh Real Estate Inc. acted as a subadvisor to Redimere.  'Horsepower and Momentum' Driving Interest Dana Summers, Senior Vice President at Northmarq, tells GlobeSt.com that this capital infusion “further exemplifies the horsepower and momentum we’re seeing in the self-storage space. It’s just another example of institutional capital making a big bet on the self-storage sector and putting $500 million behind a proven industry-leading storage owner in an effort to grow their portfolio and solidify their position in the industry.   “Furthermore, this shows how the storage industry has become much more mainstream and much more sophisticated with institutional players and capital. There is large income potential in the industry with very low overhead, and this has caused the largest of institutional investors to look at this space if they aren’t already in it.”  Smaller investors are interested in the space as well, says Steven Weinstock, national director with Marcus & Millichap’s Self-Storage Division. “We continue to work with an influx of private clients looking to expand their footprint in the self-storage space as they grow from small to high-net-worth organizations through the acquisition and management of these institutional-quality assets,” he tells GlobeSt.com.  An 'Extremely Resilient' Asset Class Cory Sylvester, Principal at DXD Capital, tells GlobeSt.com that institutional capital is looking for an opportunity in self-storage “as it has shown to be an extremely recession resilient asset class, along with seeing unprecedented growth since the onset of the pandemic.”  Because the equity checks on a deal-by-deal basis tend to be much smaller than traditional real estate asset classes, these institutional players are looking for partners who can execute at scale, Sylvester said.  “We are seeing that trend in our business, and it has become evident with the recent string of announcements that institutional capital is aggressively seeking a partner in the space.”  © 2022 ALM Global Properties, LLC. All rights reserved.