Hoffman Co. Expands into Multifamily Land and Entitlement Deals

Irvine-based brokerage firm the Hoffman Co. has expanded its multifamily services platform to include land and entitlement assistance. Patrick S. Simons, a 25-year industry veteran, joins the firm as SVP and managing director to lead the firm’s expansion into the multifamily sector.

“Over the past four decades, the Hoffman Co. has established an unmatched reputation in the sale of lots to builders.  While the firm has periodically assisted clients with multifamily land transactions, we haven’t had a focus on that business.  With shifting demographics, the demand for multifamily land has surged the past decade.  Now, we can assist a more broad range of clients,” Norman Scheel, principal at the Hoffman Co., tells GlobeSt.com.

Simons has overseen the development and redevelopment of 12,000 units throughout his career and has worked for both public and private companies. “Patrick has a unique combination of development and consulting experience.  He’s been with some household names in the multifamily industry overseeing land acquisition and development, producing 12,000 units over two decades,” says Scheel. “He also founded an internationally recognized consulting practice that assisted clients with nearly 24,000 units.  Those clients ranged from large institutional and multinational entities to small private and family owners.  So, Patrick has the perfect balance of knowledge and client service.”

Simons will also oversee the firm’s Value-Max service, which focuses on property owners without in-house multifamily experts. He will leverage a long career to help advise multifamily owners. “Over my career, I have seen many land owners who don’t have the expertise to pursue multifamily entitlements, leave money on the table,” he says. “So, I view it as a value-add service to my clients to help them navigate the entitlement process, and achieve the highest and best use, which leads to maximum sale value.  That’s why I’ve named it Value-Max. “Just yesterday, I had a conversation with an institutional owner of a 2-star motel that is interested in pursuing a higher density multifamily entitlement prior to selling.  If successful, that will probably increase the value by several million dollars. That’s smart.”

In the next year, Hoffman is focused on growing the platform and forging relationships with new clients. “In the first year, we expect to generate a broad pipeline of multifamily land opportunities for many clients, both old and new.  The multifamily sector is such a broad business with so many builders and developers having distinct business plans,” Tom Dallape, a principal at the Hoffman Co., tells GlobeSt.com. “With Patrick’s background ranging from luxury to middle-market/workforce to affordable housing as well as senior housing, we will be able to assist owners in finding just the right buyer for their property.  Additionally, we expect to be assisting a few owners of office, retail, or hospitality assets with re-entitling their properties to multifamily use.”

The current economic climate certainly makes this an interesting time to expand, but Hoffman says that it isn’t deterred by the market conditions. “As a 42-year old company, The Hoffman Company has weathered multiple real estate cycles,” says Simons. “Over the years, we have been able to help clients in all manner of markets.  The multifamily market was strong before the black swan event of the virus, and we expect that strength to return immediately once these events are behind us.  Simply put, macro demographics continue to favor apartment demand.  I routinely talk with multiple builder/developer clients each day, and they remain almost universally bullish on multifamily land.”