Jones Lang LaSalle Inc. is buying HFF Inc. in a roughly $2 billion cash-and-stock deal combining two commercial real estate brokerages that are active in self-storage.
Chicago, IL-based JLL said March 19 that it expects its purchase of Dallas, TX-based HFF to be completed in the third quarter of 2019. Mark Gibson, CEO of HFF, is in line to become JLL’s CEO of capital markets in the Americas once the deal is done.
“We truly believe that HFF’s deep market knowledge, relationships and talent will add to our existing team and help us build an even more successful company,” Christian Ulbrich, global CEO of JLL, said during a conference call.
JLL’s announcement doesn’t specify how the self-storage operations of either company will be affected. JLL spokesman Harvey Mireles said the company won’t disclose plans for its self-storage business until the acquisition wraps up.
Mireles confirmed Steve Mellon and Brian Somoza remain managing directors of JLL’s self-storage team. Meanwhile, HFF’s self-storage business is still intact.
“It’s business as usual until the deal closes,” Mireles told the SpareFoot Storage Beat.
Somoza joined JLL in 2014 after working at self-storage REIT Public Storage, based in Glendale, CA. Mellon has been at JLL since 2012. The duo has collaborated on self-storage deals throughout the U.S. They’re currently marketing a nine-facility LockTite Storage portfolio in the Austin, Houston and San Antonio metro areas in Texas, for instance.
On its website, HFF lists two self-storage deals it has under contract — including a six-facility Best Storage portfolio in Texas — and lists two self-storage facilities that it’s marketing.