Studley buyout completed

Real Estate Weekly, Dec 25, 2002

Julien J. Studley, Inc. announced the completion of a transition in the management and ownership of the firm. The company will remain privately held. Terms of the buyout agreement were not disclosed, although the firm was pleased to state that equity for the purchase had come from 45 of the firm's managers and brokers.

The transition was executed entirely by collaboration between Julien Studley and his most senior partners and a group of next-generation principals led by Mitchell Steir, Michael Colacino, and Mark Jaccom. By handing the reigns to the new team, Studley has maintained a tradition of employee ownership and management first established when he founded the firm in 1954.

Studley will transfer the titles of chairman and chief executive officer to Steir, and Studley will assume the role of founding chairman. He will continue to advise the firm on its strategic direction, while also dedicating considerable time to consulting, investing, and philanthropic endeavors.

"Whatever we do, however, our goal remains the same: to provide the best service possible to our clients," continued Steir, who emphasized that he personally planned to devote "75% to 80%" of his time to brokerage deals and servicing clients.

Colacino, the firm's new president, and Jaccom, who will have the newly created title of vice chairman of U.S. operations, are both long-time partners of Steir. Colacino stated that "the current unsettled state of the real estate service market contrasts nicely with the stability of Studley, and it is our hope we can capitalize on this by recruiting talented professionals around the country." Jaccom will concentrate his efforts on Studley's national clients, where he stated "a majority of our growth is likely to come."

Steir has been with Studley since 1988, during which time he has been the company's top producer. His career has combined some of Studley's most prestigious clients with some of its most complex transactions. He represents AOL Time Warner, Accenture, Credit Agricole Indosuez, Polo Ralph Lauren, Tiffany & Co., and many law firms including Jones, Day, Reavis and Pogue, KirKland & Ellis, Arnold & Porter, Goodwin Procter LLP, and Kirkpatrick & Lockhart LLP. Together with Colacino he has structured transactions such as AOL Time Warner's one million square foot headquarters, the 1.5 million-SF restructure of Time Inc.'s lease, and the 270,000-SF new-construction lease for Jones Day.

Members of the new management team also include long-time employees Jacque Ducharme, who has been named vice chairman of the West Coast region, and Stephen Goldstein, who becomes vice chairman of the Mid-Atlantic region.

The transition is occurring during a time of strong financial performance for Studley. Despite overall downturn in the real estate service business, Studley's revenues for 2002 will be 20% higher than 2001.