{"id":1004266421,"date":"2018-09-25T12:14:04","date_gmt":"2018-09-25T20:14:04","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004266421"},"modified":"2022-12-07T02:49:39","modified_gmt":"2022-12-07T10:49:39","slug":"new-calkain-division-targets-institutional-private-market-clients","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/new-calkain-division-targets-institutional-private-market-clients\/","title":{"rendered":"New Calkain Division Targets Institutional, Private-Market Clients"},"content":{"rendered":"

 <\/strong>By Sanyu Kyeyune<\/p>\n

\"\"

Jonathan Hipp<\/p><\/div>\n

In June, Founder, President & CEO of Calkain Cos. Jonathan Hipp tapped existing relationships to start NetCMG, the firm\u2019s capital markets division, and the timing couldn\u2019t have been better. This year\u2019s introduction of tax reform has helped in making sale-leaseback transactions<\/a> more attractive for corporations\u2014and increasingly lucrative for NetCMG. In the following exclusive interview, Hipp describes the industry trends he\u2019s been following and his plans for the newly established business line.<\/p>\n

What capital markets trends have you observed in the market, and how is NetCMG responding to these?<\/strong><\/p>\n

Hipp: <\/strong>People are chasing yield still, but as interest rates start to push up, it is creating pressure. There\u2019s somewhat of a disconnect on pricing, so we\u2019re all trying to find deals that we can make work in light of the change in interest rates from a year or even six months ago.<\/p>\n

We are trying educate our sellers.  The market is a bit different today than it was six months to one year ago. We need to set expectations to bridge the gap between what a buyer wants to pay and what a seller is (willing to accept).<\/p>\n

Our sellers (understand) that if we want to get solid executions in a timely manner, then we have to price to the market. If you\u2019re focused on maximum proceeds, then we can be aggressive, but the market might not respond quickly. A faster execution, on the other hand, requires understanding the market dynamics, (which) are always changing.<\/p>\n

Calkain built its business on the net-lease industry, focusing on the $1 million to $15 million range with the majority of our transactions being in the $2 million to $10 million for single-tenant asset sales. We\u2019ve created one of the most successful private, net-lease companies in the country.<\/p>\n

What motivated Calkain to start a capital markets division?<\/strong><\/p>\n

Hipp: <\/strong>More often, we\u2019d get referred to someone by one of our clients, and as an example, that person might be looking to sell an industrial building or do a sale-leaseback of an industrial<\/a> distribution facility or a hospital. Before (potential clients) would call us, they would visit Calkain\u2019s website and see that 90-95 percent of our offerings are retail (transactions) in the $1 million to $15 million range.<\/p>\n

That\u2019s why we set up a whole new capital markets division: It\u2019s a way for us to show people that we focus on a wide range of assets, all within the net-lease sector. Whether it\u2019s a $20 million or $100 million deal, for us, it\u2019s the same process. (Regardless of property type), our database reaches all the institutional, high-net-worth, overseas and 1031 exchange buyers.<\/p>\n

What are some deals that NetCMG has done so far?<\/strong><\/p>\n

Hipp:<\/strong> We recently took to market a $65 million sale-leaseback (opportunity) in Vail, Colo.: a behavior health\/addiction treatment facility that is going to open in spring 2019. In the second quarter of this year, NetCMG also did a credit-tenant-lease (CTL) financing (transaction) on a children\u2019s hospital in Maryland for $35 million. We\u2019re just getting ready to take a zero-cash-flow deal to the market\u2014on that same children\u2019s hospital\u2014within the next few weeks. And right now we\u2019re working on a $20 million sale-leaseback (deal), and we\u2019ve got proposals out on a couple more opportunities.<\/p>\n

We are absolutely going to continue to focus on growing Calkain, and a big part of that is growing our capital markets<\/a> and investment banking side through NetCMG.<\/p>\n

We have existing relationships with all these institutions and developers, as well as different clients and prospects around the country. They like working with us, and they know the quality of our work. For example, the person that gave us the CTL financing (deal) is a client that has done business with Calkain for years. We\u2019re effectively a one-stop shop, focusing on (the) net-lease vertical.<\/p>\n

What\u2019s next for NetCMG?<\/strong><\/p>\n

Hipp: <\/strong>We\u2019re chasing the sale-leasebacks in a big way. I have two people working with me that came from Big 10 accounting firms, Ernst & Young and Arthur Andersen LLP. We think we can handle just about any size sale-leaseback and can delve into the financing and understand any tax issues. The new tax law provides a few advantages for sale-leaseback deals and offers opportunities for firms to better leverage their capital. We\u2019re going to put some emphasis on the CTL side, too.<\/p>\n

We\u2019ve currently got about $100 million (in deals) out in the market, and would like to have another $100 million by the end of the year. Calkain didn\u2019t reach $12 billion (in closed transactions) overnight. Net CMG\u2019s growth will take time, but I don\u2019t see any reason why we can\u2019t get to $1 billion in net capital markets business for NetCMG.<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Founder, President & CEO Jonathan Hipp, describes how existing relationships and shifting market dynamics led him to start the brokerage’s capital markets group\u2014NetCMG\u2014in June, along with his plans for growing the new business line.<\/p>\n","protected":false},"author":1245,"featured_media":1004267681,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21784,21825,21783,23891,21742,21744],"tags":[33054,35494],"class_list":["post-1004266421","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brokerage","category-finance","category-investment","category-national","category-latest","category-people","tag-calkain-companies","tag-jonathan-hipp"],"acf":[],"yoast_head":"\nNew Calkain Division Targets Institutional, Private-Market Clients - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/new-calkain-division-targets-institutional-private-market-clients\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Calkain Division Targets Institutional, Private-Market Clients\" \/>\n<meta property=\"og:description\" content=\"Founder, President & CEO Jonathan Hipp, describes how existing relationships and shifting market dynamics led him to start the brokerage's capital markets group\u2014NetCMG\u2014in June, along with his plans for growing the new business line.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/new-calkain-division-targets-institutional-private-market-clients\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2018-09-25T20:14:04+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-07T10:49:39+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/09\/Hipp-Jon-400sq-calkain.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"400\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Sanyu Kyeyune\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/new-calkain-division-targets-institutional-private-market-clients\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/new-calkain-division-targets-institutional-private-market-clients\\\/\"},\"author\":{\"name\":\"Sanyu Kyeyune\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/e7b65e0bddb12f2406dadf35eb67c6a1\"},\"headline\":\"New Calkain Division Targets Institutional, Private-Market Clients\",\"datePublished\":\"2018-09-25T20:14:04+00:00\",\"dateModified\":\"2022-12-07T10:49:39+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/new-calkain-division-targets-institutional-private-market-clients\\\/\"},\"wordCount\":815,\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/new-calkain-division-targets-institutional-private-market-clients\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2018\\\/09\\\/Hipp-Jon-400sq-calkain.jpg\",\"keywords\":[\"Calkain Companies\",\"Jonathan Hipp\"],\"articleSection\":[\"Brokerage\",\"Finance\",\"Investment\",\"National\",\"News\",\"People\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/new-calkain-division-targets-institutional-private-market-clients\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/new-calkain-division-targets-institutional-private-market-clients\\\/\",\"name\":\"New Calkain Division Targets Institutional, Private-Market Clients - 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