United Transfers Services to NorthMarq Name

The real estate divisions have been redistributed, with most of the two companies now operating under the NorthMarq name. NorthMarq Real Estate Services has been formed, to handle the United Properties divisions, including brokerage, property management, construction and corporate solutions; this 820-employee division will be overseen by president Jeff Eaton. Kevin Farrell will continue as executive managing director of NorthMarq Corporate Solutions. Ed Padilla will continue as CEO of NorthMarq Capital and will lead the expansion of NorthMarq Investment Sales. Frank Dutke will lead the 110 people who stay on in United Properties, as president of the investment and development businesses.

Boyd Stofer has become chairman and CEO of a holding company that will oversee the real estate services and United Properties divisions. He tells GlobeSt.com that the merger made sense, the companies were handling the same clients and the company wants to expand its services business. The new NorthMarq divisions will be able to offer real estate services in the company's offices across the country, instead of just United Properties' current concentration in the Midwest. "We don't plan on offering all of the services in the NorthMarq offices, it gives us a starting point," he says. "The first order of business is to get investment sales brokers out, we have the capability to do that in 10 to 12 markets."

Though the move comes at a time when the economy is suffering and mortgage bankers are dwindling in size, Stofer denied rumors that the company is getting ready to sell United Properties, though it's clear where the current concentration is running. "We're not looking to sell businesses," he says. "It is a difficult time for all businesses right now, the economy isn't good, we don't expect 2008 or even 2009 are going to be great years from a business expansion standpoint. However, the real estate services business can do well in a down market, people are foreclosing properties and needing refinancing. It will be tougher for the development business."