Heitman LLC

Heitman LLC (Heitman) is an American real estate investment firm headquartered in Chicago. It has three main business areas, private equity real estate, real estate debt and investment in real estate securities such as REITs.

Heitman LLC
FormerlyHeitman Financial
TypePrivate
IndustryReal estate investment management
Founded1966 (1966)
Headquarters110 North Wacker, Chicago, Illinois, U.S.
Key people
Maury Tognarelli (CEO)
AUMUS$52 billion (June 2023)
Number of employees
350 (2023)
Websitewww.heitman.com

Outside the United States, the firm has offices in Europe and Asia-Pacific.

Background

Heitman was founded in 1966 in Chicago with an early focus on mortgage banking and servicing. At the time it was trying to find a way to capitalize real estate development activity as few institutional investors were making equity investments in real estate.[1][2][3]

By the 1970s, Heitman was moving into equity investment management to complement its debt business. Institutional investors such as pension plans and state public retirements systems were beginning to invest in real estate.[1]

By the 1980s, Heitman started forming commingled funds.[1] In 1989, Heitman established Heitman Real Estate Securities which would invest in public securities related to real estate such as REITs.[1][4]

In 1993 Heitman sold itself to United Asset Management (UAM) and became a subsidiary of it.[5]

In 1994, Heitman acquired JMB Realty's institutional asset management and non-retail property management businesses. These businesses were in the same area as Heitman and was believed to complement the firm. After the acquisition Heitman's assets under management doubled in size from $6 billion to 12 billion.[1][5][6][7]

In 1998, Hetiman underwent restructuring in an attempt to get back clients who were not satisfied with the firm's performance or methods.[8][9]

In September 2000, UAM was purchased by Old Mutual. There was a change in ownership where 50% of Heitman would be owned by Old Mutual while the other 50% were held by Heitman's management team.[1][3][10]

In the early 2000s, Heitman started expanding its operations into Asia.[11]

In 2018, Heitman acquired Old Mutual's stake of the firm making it entirely owned by its management team.[3]

Most of Heitman's investments are in private equity real estate. Its biggest market is North America followed by Europe and Asia.[2]

Lawsuits

In May 2020, Heitman sued Jenner & Block alleging it failed to pay it more than $3.7 million in rent during the months of April and May 2020. In June 2020, Jenner filed a counterclaim stating Heitman actually owed it $840,000 in credits as it was unable to use its Chicago office at the start of the COVID-19 pandemic. In September 2021, both parties reached a settlement.[12]

References
  1. Bergsman, Steve (2012-06-12). Maverick Real Estate Financing: The Art of Raising Capital and Owning Properties Like Ross, Sanders and Carey. John Wiley & Sons. ISBN 978-1-118-42930-3.
  2. "Chicago investment firm Heitman eyes Asia-Pacific property". South China Morning Post. 2014-06-17. Retrieved 2023-10-04.
  3. Gallun, Alby (January 8, 2018). "Heitman executives buy out British investor's stake in firm". Crain's Chicago Business.
  4. "Part 2A of Form ADV: Firm Brochure". SEC. 2023.
  5. Andreoli, Tom (October 22, 1994). "FOR BUYER HEITMAN, A BIG PAYOFF-IF IT SUCCEEDS". Crain's Chicago Business.
  6. "COMPANY NEWS; United Asset Plans Its Biggest Acquisition". The New York Times. 1994-11-12. ISSN 0362-4331. Retrieved 2023-10-04.
  7. "DEAL FORMS INSTITUTIONAL REALTY GIANT". Chicago Tribune. 1994-10-20. Retrieved 2023-10-04.
  8. Journal, Mitchell PacelleStaff Reporter of The Wall Street (1997-05-28). "Heitman Capital Clients Nix Management Reorganization". Wall Street Journal. ISSN 0099-9660. Retrieved 2023-10-04.
  9. "HEITMAN CAPITAL'S CEO LEAVES: FIRM RESTRUCTURES, ALTERS FOCUS". Pensions & Investments. 2006-12-13. Retrieved 2023-10-04.
  10. "Old Mutual extends US reach with $2bn UAM acquisition - Business News - Business - The Independent". Independent.co.uk. 2012-11-04. Archived from the original on 2012-11-04. Retrieved 2023-10-04.
  11. Poon, Eva (2013-01-16). "Heitman makes Asia push". Infrastructure Investor. Retrieved 2023-10-04.
  12. Thomas, David (2021-09-09). "Jenner, Chicago landlord end lawsuits over unpaid rent". Reuters. Retrieved 2023-10-04.
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