Northmarq Completes Stan Johnson Company Acquisition

Rhea-AI Summary

Northmarq has completed its acquisition of Stan Johnson Company (SJC) and Four Pillars Capital Markets (FPCM), expanding its presence in the commercial real estate sector. This strategic move adds nearly 1,000 professionals to Northmarq's team and includes services across various property types, enhancing their annual transaction volumes to $23 billion in debt/equity and $15 billion in investment sales. SJC, recognized as a leading net lease investment sales brand, has recorded significant growth, with a 600% revenue increase since 2005.

Positive

• Acquisition enhances Northmarq's service offerings across all major property types.
• The merger adds nearly 1,000 professionals to Northmarq's existing workforce.
• Combined annual transaction volume reaches $23 billion in debt/equity and $15 billion in investment sales.
• Stan Johnson Company has seen a 600% revenue increase since 2005, indicating strong performance.

Negative

• None.

The merger provides clients with increased opportunities within all domestic commercial real estate markets

MINNEAPOLIS--(BUSINESS WIRE)-- 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.

Jeff Weidell, CEO, Northmarq (Photo: Business Wire)

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.

About Northmarq

Northmarq is a full-service capital markets resource for commercial real estate investors, offering seamless collaboration with top experts in debt, equity, investment sales and loan servicing. We combine industry-leading capabilities with a flexible structure, enabling our national team of experienced professionals to create innovative solutions for clients. Our solid foundation and entrepreneurial approach have built an annual transaction volume of more than $37 billion and a loan servicing portfolio of nearly $76 billion. Through the 2022 acquisition of Stan Johnson Company and Four Pillars Capital Markets, Northmarq introduces clients to expanded opportunities across all major asset classes.

To learn more about Northmarq, please visit: www.northmarq.com. More information on Stan Johnson Company and Four Pillars Capital Markets may be found on their websites.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221017005225/en/

Elliot Golan

Allison+Partners

1-818-571-0540

elliot.golan@allisonpr.com

Source: Northmarq

FAQ

What is the significance of Northmarq's acquisition of Stan Johnson Company and Four Pillars Capital Markets?

The acquisition expands Northmarq's capabilities in commercial real estate, enhancing service offerings across various property types and increasing transaction volumes.

How many professionals does Northmarq employ after the acquisition?

Northmarq now employs nearly 1,000 professionals across its investment sales, debt/equity financing, loan servicing, and fund management operations.

What is the annual transaction volume of Northmarq following the acquisition?

Following the acquisition, Northmarq's annual transaction volume is approximately $23 billion in debt/equity and $15 billion in investment sales.

What was the revenue growth of Stan Johnson Company since 2005?

Stan Johnson Company has experienced a significant revenue growth of approximately 600% since 2005.

Who provided financial and legal advisory during the acquisition?

Houlihan Lokey served as the exclusive financial advisor to Stan Johnson Company, while Bass, Berry & Sims PLC provided legal advisory services.