Jones Lang LaSalle Getting Into Mortgage Banking Business Through an Acquisition and CBRE Expands Senior Exec’s Role To Include Capital Markets
Global real estate service providers and major competitors Jones Lang LaSalle (NYSE:
JLL) and CB Richard Ellis (NYSE:
CBG) announced moves to further expand their respective roles in the
commercial real estate capital markets.
Jones Lang LaSalle said it is buying the commercial lending and servicing group of Atlanta-based Primary Capital Advisors. The pending acquisition will enable JLL to offer expanded loan servicing and lending capabilities with PCA's $2 billion servicing platform and its seller/servicer relationship with Freddie Mac, becoming one of the few Freddie Mac program participants operating in the agency business.
For its part, CB Richard Ellis announced that Chris Ludeman, who heads the firm’s office, retail and industrial brokerage operations in the Americas, will also become co-president of the firm’s Capital Markets business, along with current Capital Markets president Brian Stoffers.
CBRE also promoted Spencer Levy to executive managing director and expanded his role in the firm’s Capital Markets business. The restructuring will continue as CBRE also plans to appoint new practice leaders in coming months for its Capital Markets business in the office, industrial and retail property sectors and expand its multi-housing practice with the addition of an investment sales practice leader.
Not Just Mortgage Brokers, Now Mortgage Bankers
The acquisition of Primary Capital Advisors’ Commercial Real Estate Lending and Servicing Group by Jones Lang LaSalle adds multifamily mortgage lending and servicing capabilities to the firm’s capital markets business, giving JLL a $2 billion loan servicing platform and direct connection to capital as a Freddie Mac Program Plus Seller/Servicer.
JLL said it plans to expand the platform nationally through additional correspondent and servicing relationships. The transaction does not include Primary Capital Advisors’ single-family residential mortgage business, which PCA will continue to operate across 26 states as Primary Capital Mortgage.
Primary Capital Advisors’ founder, President and Chief Executive Officer William B. Pendleton, will serve as a senior advisor to JLL following the sale. Primary Capital co-founder Faron Thompson will stay on to lead Jones Lang LaSalle’s multifamily lending business and assume an executive leadership role in the firm’s Real Estate Investment Banking team (REIB). He will be joined by Managing Director John Bray, who was Primary Capital Advisors’ top producer for its Program Plus business in 2010.
Thompson and Bray will round out JLL’s team along with Capital Markets President Jay Koster and the real estate investment banking team of Tom Melody, Mike Melody and Tom Fish, along with Jubeen Vaghefi, managing director of the firm’s national multifamily investment sales team.
Thompson will direct the firm’s commercial loan servicing platform and a Freddie Mac Program Plus Seller/Servicer under the leadership of Fish, Melody and Melody.
"We are focused on building an industry-leading Capital Markets business with a strong foothold in the multifamily business throughout the Americas," said Koster in a statement announcing the agreement.
Putting Managerial Framework in Place for Expanded Role
The news that Chris Ludeman will join Brian Stoffers as co-president of the firm's Capital Markets businesses was also viewed as one of a series of moves intended to establish expanded oversight and additional framework for growing its capital markets business.
Under Ludeman’s expanded role, he will lead the company's
investment properties sales business along with its Institutional Group, Global Property Advisors and Private Client Group activities, while Stoffers will continue to lead CBRE's Debt and Equity Finance, agency and loan servicing businesses, as well as oversee the multi-housing, hotel/lodging and investment banking practices. Ludeman will continue as President, Americas Brokerage, overseeing CBRE's tenant rep and agency leasing business lines.
"Great organizations are committed to continuous improvement and these appointments further strengthen our Capital Markets platform and client service capabilities," said Mike Lafitte, president of CB Richard Ellis.
Ludeman’s expanded oversight of CBRE’s capital markets business follows last year’s hiring of John Frager from Cassidy Turley BRE Commercial to lead CBRE's office services group, where he currently oversees the firm's brokerage and investment operations in the United States, Canada and Latin America. Frager had spent eight years as president and CEO of the predecessor firm prior to it becoming part of Cassidy Turley. Frager spent the first 16 years of his commercial real estate career at CB Richard Ellis before leaving in 2002 to establish BRE Commercial along with several others.
During his nearly 30 years with CBRE, Ludeman has served as president, transaction management and global corporate services. He also held several regional and local market leadership positions across the United States.