FEATURE ARTICLE, OCTOBER 2005

CLIENTS COUNT
The Marshall Group has found success across the United States by adhering to one belief: the client always comes first.
Lara Fuller

The Marshall Group was founded only 4 years ago, in 2001, yet the company has already achieved unprecedented success in the world of commercial lending. Now, the $600 million financial services company has eight satellite offices across the United States, servicing every area of the country. The Minneapolis, Minnesota-based company has found success, and kept it, by building a business based on what is best for the client, not just the company.

The Founding Mission

Dennis M. Mathisen, a bank owner and M&A attorney from Minneapolis started The Marshall Group in 2001 in order to handle the origination, distribution and servicing of loans. From there, the company continued to expand. In 2002, Mathisen purchased the $40 million Hallock Bank of Minnesota. This year, he made an additional purchase to further augment the company's investment banking sector. Mathisen bought the Sioux Falls, South Dakota-based BankFirst Corporation, which has branch locations in Toronto and Brookings, South Dakota, as well as in Chandler, Arizona, and Minneapolis. The entities of Hallock Bank and BankFirst Corporation, along with The Marshall Group, have now combined into the Marshall BankFirst Corporation.

Since its beginning, The Marshall Group has taken a different approach to its business. “Our clients come first — every transaction, every time. No exceptions,” says Tom Grady, executive vice president of sales and marketing. “Our success stems from relationships we have developed over time through hard work, execution, integrity and mutual respect.”

Following this mission has allowed the company to work with clients in almost every state, handling financing for projects including condominiums, multifamily, hospitality, healthcare, senior housing, gaming, industrial/ warehouse, mixed-use, office, recreation and retail. “So far in 2005, we have closed loans in 30 states,” says Grady. “With no geographic or lending restrictions, The Marshall Group is able to execute a large variety of transactions.”

One example of a recent loan closed by the company involved a development on Mustang Island in Texas. The Zohouri Development group needed a land acquisition/bridge loan to develop single-family homes and high-rise condominiums on the island. The Marshall Group was able to provide $22 million in financing to help Zohouri Development to get underway. “A large land loan, this transaction was a unique lending opportunity on the Gulf Coast of Texas with an experienced, savvy borrower,” says Grady.

Some other transactions the company has recently serviced in Texas include a $4.9 million term loan for a 24 Hour Fitness development in Frisco; a $4.3 million first mortgage for a 24 Hour Fitness center in Austin; and a $3.2 million acquisition loan for Hudson Harbor in Austin.

In a highly competitive field, The Marshall Group sits apart from the rest not only because of the loan types and terms it offers, but also because of its approach. The company is fully aware of the trust that is necessary in a good business relationship and knows the responsibility that comes along with major finance projects. “We distinguish ourselves by focusing on our clients, not our competition,” says Grady. “With the banking landscape changing rapidly, our clients count on us to present a contemporary approach to lending. We are proud to offer unique financial alternatives that make sense to both borrowers and lenders alike.”

Setting High Standards

The Marshall Group offers a range of loan types including acquisition, bridge, construction, mini-permanent and term, in order to give clients a choice of funding options. When looking at a potential client or transaction, The Marshall Group considers a list of several criteria before taking on a deal. “All of our loan underwriting starts with the strength and character of the loan's sponsorship,” says Grady. Some key questions the company asks include: Who are the borrowers and guarantors? Have they done this before? What is their track record? Do they have enough resources, such as equity, expertise and people, to complete the project? By thoroughly researching and finding answers to these questions, The Marshall Group can better understand the projects and their potential risks. “If the sponsorship passes our tests, we then look at the fundamentals of credit, including the current business and economic conditions, the value of the collateral being pledged and the analysis of independent, third-party appraisals to verify the stated value of the property,” says Grady.

Riding the Ups and Downs

By sticking to its original mission, to keep the client first, The Marshall Group will see continued success, regardless of what the real estate market may or may not do. “Despite the continued call for an economic slowdown and a bursting of the real estate bubble, we still believe that a disciplined approach to lending will adequately protect a diversified loan portfolio,” says Grady. The company keeps a close eye on the Federal Reserve System, as well as the housing starts and condominium absorption rates in certain areas. “Overall, while cautious, we are still very positive on real estate as an asset class for lending portfolios,” says Grady.

With a strong client base and a solid business plan, The Marshall Group plans to achieve much more in its next 4 years. “Guided by our mission and living our values daily, The Marshall Group will achieve sustainable long-term growth, deliver superior products and services and generate attractive returns to our clients, employees and shareholders,” says Grady.

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