GlobeSt.com EXCLUSIVE: HSM Debt, Equity Divisions Get New Leaders

Roy F. Norwood goes from executive vice president of HSM's Investment Banking Group to replace James Brownlow, who resigned last week after helping to launch the group in March 2002 in a merger with his Stonehill Realty Capital Group. On the equity side, Terry W. Gwin rose from managing director of HSM Equity Partners Inc. to the newly created post of president.

"We have two very effective groups and we expect to grow both," Sam Kartalis, president and COO of Dallas-based Henry S. Miller Commercial, tells GlobeSt.com.

The investment banking group now numbers six while the equity team has five. Just hired as senior vice presidents for HSM Equity Partners were Steve Scott, a 30-year veteran who exited as president of Equity Capital Brokers in Dallas, and James Thompson, a financial markets specialist who left a president's job with ITSA Inc. Gwin confides he's locked in talks with another prospect and will have a third name to add before the year ends. Norwood is out of town and couldn't be reached for comment about the plans for his group.

HSM Equity Partners was formed eight months ago when Gwin came on board from Phoenix Capital Partners Ltd. Since then, $100 million in transactions have closed in Dallas, Washington and Tulsa, OK, plus another $50 million in four deals are pending, he says.

Henry S. Miller Commercial's "buy side" is pushing hard to pick up deeds in all metro markets in Texas. Vance Miller, a recognized "contrarian," made the decision about two years ago to "take advantage of market conditions" and buy, Kartalis says. Just a few weeks ago, the firm paid close to $50 million for the 662-unit Jefferson at Montfort in North Dallas. More contracts are pending in Dallas-Fort Worth and Houston.

Since Norwood and Gwin came on board, their track record, in a sense, "created their positions," Kartalis says. "They took advantage of an environment that allowed them to really present themselves. We are feeding off their expertise and we are feeding off their support systems."

With the "buy plan" in hand, retail and multifamily have cornered HSM's attention. "We're looking for deals," Kartalis says, adding the structuring is now firmly rooted to leverage the portfolio build-up. HSM Equity Partners, he explains, is "raising large amount of equity for the properties that we purchase. On the flip side, Norwood is negotiating the debt side of the equation with institutional investors and also working third-party deals."