Jones Lang LaSalle Inc.
) has penned a deal to acquire the Kansas City-area commercial
real estate firm Capital Realty. The financial terms were not
disclosed. Slated to close by next week, the acquisition would
help Jones Lang broaden its platform, deepen its reach and
enhance its growth in the region.
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Jones Lang can leverage on Capital Realty's strong presence in
the area. It deals in leasing, property management and sales of
industrial, office and retail properties; land sales; and project
management and development services.Currently, approximately 90
properties (5.4 million square feet) across the Kansas City area
are managed by Capital Realty for regional and local
Moreover, the deal brings on board Capital Realty's local
expertise. These include the joining of Kevin Wilkerson, Capital
Realty's President, together with 24 real estate experts and
staff members in Jones Lang. Wilkerson will become the Managing
Regional Director in Jones Lang while both the Senior Vice
Presidents at Capital Realty - Jeffrey Kembel and Phillip Algrim
- will join as Senior Vice Presidents.
The business expansion efforts in Kansas City are a strategic fit
for Jones Lang. Serving as a center for transportation, freight
and rail industries and playing a key role in the national supply
chain, Kansas City is a prime industrial market that Jones Lang
plans to capitalize on.
In fact, Kansas City ranks among the top 15 national markets for
total inventory and is one of the 10 markets with lowest vacancy,
thereby providing stupendous growth prospects to Jones Lang.
Sites that are attracting auto plant reinvestments, rail
intermodal development and data centers as well as distribution
sites for the e-Commerce industry, are particularly driving this
industrial sector boom.
We expect the purchase to bring in market consolidation benefits
for Jones Lang, which currently has a Zacks Rank #4 (Sell),
following lower-than-expected second-quarter results.
Leveraging its superior operating platform and market share
expansion, the company already achieved five-fold growth in its
adjusted operating income over the last 10 years. Alongside, we
believe such opportunistic deals would aid the positive trend to
continue going forward.
A number of companies that are performing better and are worth a
look in the same industry include
), that carries a Zacks Rank #1 (Strong Buy) as well as
CBRE Group, Inc.
), both carrying a Zacks Rank #2 (Buy).