W&D Acquires Housing Research and Investment Banking Firm
The convergence of the single-family rental, multifamily housing and build-for-rent asset classes was one driver behind the deal.
Walker & Dunlop has agreed to acquire a controlling interest in Zelman & Associates, a housing research and investment banking firm in the US.
New York and Cleveland-based Zelman was founded in 2007 by Ivy Zelman and Dennis McGill. Zelman & Associates has 25 employees, all of whom will join Walker & Dunlop upon closing of the acquisition, which is slated to happen during the third quarter of 2021. It is subject to customary consents and regulatory approvals.
In the announcement of the purchase, Walker & Dunlop says Zelman’s research is “differentiated by its tenured housing experience, proprietary surveys anchored by an unparalleled network of executive-level leaders and an acute ability to identify and synthesize developing investment and fundamental themes.”
Zelman covers macro, sector and company-specific trends across all areas of housing, including homebuilding, building products, demographics, multifamily, single-family rentals, mortgage finance and real estate technology and services. Zelman’s investment bank, led by Tony McGill, focused exclusively on the housing sector.
The Zelman team has experience in the M&A, debt and equity transaction markets, including private debt and equity placements, IPOs and secondary equity offerings, public debt underwritings, project and platform-specific capital raises, corporate valuations and buy and sell-side M&A advisory services.
One driver behind the acquisition is the convergence of the single-family rental, multifamily housing and build-for-rent asset classes, according to Walker & Dunlop CEO Willy Walker. “Zelman’s unique research and Walker & Dunlop’s banking and brokerage operations will be a powerful combination as these asset classes are further institutionalized,” he said in a prepared statement.
“Investment banking is a key component of Walker & Dunlop’s Drive to ’25, and we plan to invest in the business to expand Zelman’s coverage, with a priority focus on the multifamily and single-family rental sectors,” he added.
Zelman Chief Executive Officer Ivy Zelman believes her company will expand its research and data analytics capabilities by gaining access to W&D’s first hand market intelligence, management of a loan servicing portfolio, existing technologies and marketing capabilities.
The acquisition is just one component of Walker & Dunlop’s growth beyond its core functionality. As one example, last year Walker & Dunlop and GeoPhy, a CRE valuation company, launched Apprise with the goal of modernizing the antiquated appraisal process through artificial intelligence. More recently, the company expanded the offering to the West Coast with the hiring of Jacinto Munoz, managing director and head of strategy and compliance.