Hasbrouck Heights-Based Industrial Specialist Ends Two-Year Relationship With Lee & Associates
|Charles Klatskin, founder of New Jersey-based Klatskin Associates LLC.|
Continuing to mount a somewhat quiet challenge to U.S. real estate brokerage giants CBRE and Cushman & Wakefield, Jones Lang LaSalle (JLL) has agreed to acquire Klatskin Associates LLC, the Hasbrouck Heights, NJ-based industrial real estate services firm led by Charles Klatskin.
The acquisition, which also includes Klatskin Associates Management Co. Inc., strengthens JLL's industrial platform in the Garden State and expands its presence into Bergen County, where it will retain the head office of Klatskin Associates as its third location in New Jersey.
"We are truly excited about joining Jones Lang LaSalle and look forward to the opportunities that being part of this firm provides," Klatskin said in a statement. "The combination of our industrial expertise and local knowledge with Jones Lang LaSalle’s depth of services and global coverage will provide our clients with the ultimate real estate services team."
Klatskin, who founded the firm in 1966 as Charles Klatskin Co., aligned with Lee & Associates in 2005 and renamed the firm Lee & Klatskin Associates. Klatskin will serve with JLL in an advisory role, while Klatskin Associates principals Robert Kossar, David Knee, Charles Fern, Joel Lubin and Anthony Scaro were named executive vice presidents.
An additional 20 people with join JLL from Klatskin, which employs about 50 people, according to its website. The Klatskin office in Edison will close, JLL said, with plans to move many of those employees to its existing office at Metro Park by the end of the year.
JLL will employ more than 300 people in New Jersey following the Klatskin integration, with offices in Parsippany, Iselin and Hasbrouck Heights.
The deal for Klatskin Associates "adds an important piece to our national industrial services platform," JLL Tri-State Region President Peter Riguardi said in a statement. The state is a strategic location for warehouse and distribution operations due its proximity to major East Coast cities like New York, Philadelphia, Baltimore and Washington, D.C.
"New Jersey is the fourth largest industrial market in the United States and, as home to many Fortune 500 companies and the key port of entry for the East Coast, the premier industrial market in the Northeast region," stated Craig Meyer, director of JLL’s national industrial practice.
"Bringing on the best team in the market is a perfect way for our firm to expand its industrial presence in this important market."
With the loss of Klatskin Associates, California-based Lee & Associates also loses its major East Coast foothold. Lee & Associates had counted on growing its Eastern platform around the Klatskin partnership, although that expansion failed to materialize over the past two years.
"Our business relationship with Klatskin will continue on a referral basis since Jones Lang has a limited presence in the markets we are strongest in," Lee & Associates Founder Bill Lee said in a prepared statement. "We highly respect Charlie Klatskin and his team and wish them well in their new venture."
Lee & Associates said it is currently in expansion discussions with industry executives in Washington, D.C., Manhattan, downtown Los Angeles, Atlanta and Silicon Valley, and said it will "actively pursue" a renewed presence in New Jersey.
Meanwhile, JLL has grown considerably in the U.S. this year, striking recent deals to acquire real estate services firms Corporate Realty Advisors in North Carolina and Zietsman Realty Partners in Los Angeles. The firm is also expanding operations in Texas, Southern California and the Silicon Valley region and has committed to grow its Capital Markets group nationally.
Last year, JLL expanded its presence in Boston and Washington, D.C. with its acquisition of Spaulding & Slye.
JLL has 160 offices worldwide and operates in more than 50 countries.