Jones Lang LaSalle’s acquisition of Houston-based third-party property management company Means Knaus Partners (MKP) adds 16 million square feet of office space
under management to JLL’s portfolio.
MKP manages 80 office properties across the U.S., primarily in Chicago, Dallas, Houston, Denver, Los Angeles, Orlando and Tampa, FL.
The acquisition will give JLL the number-one commercial property manager position in Orlando and the number-two spot for third-party management in Los Angeles County. The deal also adds nearly 100 employees to Chicago-based JLL, which already holds the top position in the Windy City’s CBD and in Denver, and the number-two position in suburban Chicago.
Among the top management assignments held by Means Knaus are the 62-story, 1.1 million-square-foot Aon Center at 707 Wilshire Blvd. and the 42-story, nearly 1 million-square-foot One California Plaza tower both in downtown Los Angeles; the 654,000-square-foot SunTrust Center in Orlando; 2000 West Loop South, a 357,000-square-foot office building
in Houston’s Uptown District near the Houston Galleria; and 300 South Riverside, a 23-story tower totaling 1.1 million square feet in Chicago’s West Loop.
John Gates, president of JLL’s national real estate services, said the acquisition is "a powerful fit that will enhance the combined platform's strength in key markets."
JLL was also attracted to the talent and experience of MKP's management team, and its portfolio of high-quality office assets.
CEO Douglas A. Knaus will join JLL as an international director. Means and Knaus met at the Paragon Group Inc. of Dallas, which merged with Camden Property Trust in 1997. Knaus, along with the late Steven A. Means, established MKP as a private real estate investment and management company in 1998.
COO Robert Nowak will become a JLL managing director. Terms of the transaction were not disclosed.
"Facilities and property management are both very big and robust businesses for Jones Lang LaSalle, domestically and globally," Gates tells CoStar. "Property management is always a growth business for us. We're an aggregator of talent and one of the consolidators within the industry, so we're always looking at a number of firms. Acquisitions are opportunistic in a sense because it has to be the right time for a transaction, and good strategic and cultural fit."
JLL services a property and corporate facility management portfolio of 2.6 billion square feet worldwide, divided roughly between 1.8 million square feet of onsite property management to non-occupying investors and 850 million square feet in facilities management services to owner-occupied properties in more than 80 countries.
The company earlier this month announced the acquisition of Capital Realty, an NAI Global affiliate managing about 90 properties in the Kansas City metro area totaling 5.4 million square feet.
The global firm won 27 new corporate outsourcing assignments, expanded four existing client relationships and renewed nine contracts in the first half -- including a major renewal for Shell’s 80 million-square-foot portfolio across Europe, Asia-Pacific and Latin America.
The outsourcing of all facility management, projects, transactions and other services for Canada Post Corp.'s 17.5 million-square-foot national portfolio was an important new mandate for the firm in Canada.
In comparison, Los Angeles-based CBRE reported 3 billion square feet of property and corporate facilities under management at midyear, excluding affiliate offices. Not to be outdone, CBRE has added 22 contracts with new clients this year, including such big wins such an agreement to manage J.C. Penney’s 112 million-square-foot U.S. real estate portfolio, and 20 expansions of existing contracts with corporate clients such as AT&T, Citigroup, Dell and Oracle.