Jones Lang LaSalle Acquires The Apartment Group

DALLAS-In a move to boost its presence in the Texas apartment sector, Jones Lang LaSalle has acquired The Apartment Group (TAG), a six-person, 20-year-old firm that carved its reputation for owner representation in multifamily property sales. The acquisition, effective as of Dec. 31, is part of a national strategic plan on the part of the Chicago-headquartered JLL to expand the firm's overall Capital Markets multifamily platform.

TAG's founder and president Jeff Price will join JLL as managing director, and will lead the company's efforts throughout Texas. Joining him will be William Simmons (who joins JLL as senior vice president), David Fersing (who becomes vice president), and the administrative staff consisting of Susan Gosslee, Alison Rutland and Janet McEowen.

In an interview with GlobeSt.com, Price says The Apartment Group will be fully integrated into the Jones Lang LaSalle branding and platform. TAG will also physically move from its current location in North Dallas to JLL's uptown offices; a move slated to take place in late January or early February. "The move should be seamless," Price notes. "It's a matter of getting the message out there to everyone so they'll know how to reach us."

Price explains that market dynamics were the main driver behind merging the boutique firm he launched in 1991 with the larger Jones Lang LaSalle. Though TAG has competed effectively, he says joining forces with JLL will provide more resources to clients and to remain competitive in what is becoming an increasingly volatile marketplace.

Anyone paying attention to commercial real estate understands that multifamily continues to be a very hot sector from an investment side. Helping the fact, Price says, includes two proprietary lenders with Fannie Mae and Freddie Mac, not to mention the conduit loans and funding from life insurance companies available. "Debt is very accessible and relatively cheap," he observes. "I've been involved in multifamily in the Dallas area for 30 years, and I don't think I've ever seen the market, from an operational perspective, so strong." Texas, especially, has seen some terrific growth in the multifamily sector, thanks to the fact that jobs are being created throughout the Lone Star State.

As such, Jones Lang LaSalle wasn't the only suitor to come a'callin on TAG. "We were being courted by a number of different firms," Price notes, with a laugh.  "I'd say during 2012, things really heated up. Fourth quarter, it became apparent to both of us that this would be a good match, and we worked in earnest to get it done."

He goes on to say that JLL was the obvious choice because he knew a lot of folks there, people who remained from when the company acquired The Staubach Co. in 2008. Furthermore, "What they can offer through their platform, especially in the state of Texas, and build off from what I started is intriguing and a great next step in my career," Price says.

A spokeswoman with Jones Lang LaSalle says the company has boosted its multifamily platform nationally during the past couple of years, adding teams in Washington DC and Seattle, and hiring personnel along the Eastern Seaboard and southeastern part of the United States.  

“The addition of The Apartment Group further enhances our strategic growth plan to become the leading Capital Markets provider in the commercial real estate business,” says Jay Koster, president of Jones Lang LaSalle's Americas Capital Markets in a press release. “Over the past four years, we've added more than 75 multifamily sales and debt and equity specialists to our roster, and late last year, we were approved as a Freddie Mac Multifamily Program Plus® Seller/Servicer in the state of Texas, in addition to our territories in the Mid-Atlantic and the Southeast.  These full-scale capabilities will allow us to offer clients the most comprehensive multifamily platform in the Southwest.”