JLL is now better positioned to help retailers across the United States control costs and improve profitability with the acquisition of lease and debt restructuring firm Huntley, Mullaney, Spargo & Sullivan, Inc. (HMS). The transaction is consistent with JLL’s growth strategy and will enable the firm, already a national leader in retail real estate services, to provide a broader range of services to retailers. While mostly focused on retail chains, HMS also provides restructuring services to companies that lease office or industrial space.
Founded by Tom Mullaney, Dave Spargo and Bill Sullivan, Sacramento, California-based HMS is a recognized leader in lease and debt restructuring. JLL’s new experts help retailers improve profitability and cash flow in response to shifting consumer buying habits, rising real estate costs and the growing trends of online shopping and same-day shipping. Since 1993, HMS has restructured more than $12 billion in lease and debt liabilities for nearly 400 clients while working constructively with the country’s largest landlords, REITs, banks, key regional and local lenders, insurance companies and pension funds.
“Retailers increasingly rely on experts to reinvigorate their real estate portfolios through restructuring,” said Walter Wahlfeldt, Executive Vice President of JLL’s Retail Corporate Services. “HMS creates value for retailers by reducing financial pressure on their portfolios and by helping profitable businesses improve returns on their assets. HMS is a pioneer helping some of the most profitable and successful retailers aggressively manage their occupancy costs.”
A total of 10 executives from HMS are expected to join JLL. The firm’s three principals, Tom Mullaney, Dave Spargo and Bill Sullivan, will serve as Managing Directors, Retail Corporate Services, JLL. The new HMS executive team will report to Naveen Jaggi, President of JLL’s Americas Retail Brokerage business.
In the last year, JLL has grown its retail brokerage business across major markets and, in addition to HMS, has also acquired Wilson Retail Group and Shelter Bay Retail Group. “We’re committed to making JLL a platinum retail brand that provides the full spectrum of services,” said Naveen Jaggi, President of Retail Brokerage for JLL. “HMS’s principals are former CEOs and CFOs who understand the pressures C-suite executives face. They bring to JLL decades of experience helping healthy companies succeed and minimize occupancy risk in an ever-evolving economic environment. This team is exacting in its ability to help brands find stronger financial footing.”
“Now is the right time for our business to join a global, full-service company that offers our clients complementary services like brokerage, investment sales and portfolio optimization. Our clients can now tap on-the-ground experts in cities across the globe to gain invaluable local market intelligence as part of our service offerings,” said Spargo. “JLL offers our team a collaborative culture where we will be able to maintain our tailored approach to client service and customized workouts intact.”