KLNB Expands Mid-Atlantic Investment Sales Team
KLNB has beefed up the investment sales team in its Washington, D.C., office, with the additions of Pierson Kreutzer, John Colan and Patrick Scanlon — all coming from Lee & Associates’ D.C. branch.
Combined, the three new members of the KLNB team have 21 years of experience in commercial real estate.
Kreutzer, who will take on the role of senior vice president, was actually with KLNB from 2015 to 2019, working in the middle market investment practice that he concentrates on today.
“KLNB already has a robust investment sales group, and our responsibility is to bring our brand of development-focused experience and expertise to the KLNB table,” Kreutzer told Commercial Observer. “In addition to our own clients, we hope to complement other teams’ efforts, providing potential development strategies for their clients as well.”
While with Lee & Associates, Kreutzer helped open its D.C. office and had more than $1 billion in recorded transactions over the past three years, working in tandem with Colan and Scanlon.
Among their recent deals was the $9 million sale of 6400-6412 Beulah Street, a two-building office project on the border of Alexandria and Springfield, Va., that had recently lost its anchor tenant and was almost entirely vacant.
“We conducted an exhaustive study of the market and the existing zoning, and developed a complex but practical entitlement strategy that we could sell to the market,” Kreutzer said. “We ended up receiving numerous offers from both regional and national developers but, ultimately, we selected a local investor who was willing to close on the property prior to obtaining entitlements.”
Scanlon and Colan are both joining KLNB as investment sales specialists.
Kreutzer’s prior experience at KLNB “gave our entire team unwavering confidence in the firm’s capabilities and leadership,” Colan said. “We know the resources and support KLNB provides will allow our practice to flourish, and we’re excited about the collaboration opportunities with other members of the KLNB team to grow the company’s investment sales platform.”
Dissecting D.C.’s current market, Scanlon noted it’s in somewhat of a “holding pattern” right now, but the team expects to see substantial movement beginning in the second quarter of this year, with the biggest driver of sales being office product.
“Opportunistic refinancing has come to a complete halt, so as loans start to mature on assets with substantial vacancy, property owners will be forced to either sell or hand the keys back,” he said. “The key unknown, though, is will there be buyers for those properties? We believe with the right strategy the dots can be connected because, despite the current interest rate environment, there are a number of resourceful investors and developers still actively seeking opportunity.”
The hiring of the trio of brokers comes on the heels of KLNB recording its best year ever in 2022, as the company reported $1.8 billion in transaction volume and 1,170 total transactions, an increase of 3.3 percent and 11 percent, respectively, over 2021, according to the company.
Keith Loria can be reached at Kloria@commercialobserver.com.