In a move the company said is aimed at helping retailers bolster profitability, JLL acquired restructuring firm Huntley, Mullaney, Spargo & Sullivan Inc. for an undisclosed amount.
HMS is a lease and debt restructuring firm that has “restructured more than $12 billion in lease and debt liabilities for nearly 400 clients” since 1993, JLL said, adding that the deal expands its offering to retailers.
The acquisition comes at time when retailers of all sizes and across all channels are re-examining their real estate holdings and leases, which includes major retailers such as Macy’s Inc. and Sears Holdings Corp.
JLL said a total of 10 executives from HMS will join JLL, and the three principals of it (Tom Mullaney, Dave Spargo and Bill Sullivan) will take on roles as managing directors for JLL’s Retail Corporate Services. All will report to Naveen Jaggi, president of JLL’s Americas Retail Brokerage business unit.
Walter Wahlfeldt, executive vice president of JLL’s Retail Corporate Services, said “retailers increasingly rely on experts to reinvigorate their real estate portfolios through restructuring. HMS creates value for retailers by reducing financial pressure on their portfolios and by helping profitable businesses improve returns on their assets. HMS is a pioneer helping some of the most profitable and successful retailers aggressively manage their occupancy costs.”
JLL noted that its new HMS “experts” will help retailers “improve profitability and cash flow in response to shifting consumer buying habits, rising real estate costs and the growing trends of online shopping and same-day shipping.”
The acquisition is part of a larger effort by JLL to expand its retail brokerage business. Previously, the company acquired Wilson Retail Group and Shelter Bay Retail Group.
Jaggi said the HMS principals are former executives “who understand the pressures C-suite executives face.”
“They bring to JLL decades of experience helping healthy companies succeed and minimize occupancy risk in an ever-evolving economic environment,” Jaggi added. “This team is exacting in its ability to help brands find stronger financial footing.”
Aside from working with retail companies, HMS also has experience in debt and lease restructuring in the office and industrial real estate sector.