FEATURE ARTICLE, SEPTEMBER 2005

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

The Marshall Group was founded only four years ago, in 2001, yet 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.

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. Then, in 2005, he made an additional purchase to further augment the company’s investment banking sector. Mathisen bought Sioux Falls, South Dakota-based BankFirst Corporation, which has branch locations in Toronto and Brookings, South Dakota, as well as in Minneapolis and Chandler, Arizona. The entities of Hallock Bank and BankFirst Corp., along with The Marshall Group, have now combined into the Marshall BankFirst Corp.

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. “The Marshall Group is an innovative financial solutions provider dedicated to delivering valued financial products and services to our clients. 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, health care, 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 the Tallus Residence Club in Mammoth, California. The $31 million construction loan was needed to develop 19 luxury homes in the ski resort town of Mammoth. “What makes this project unique is that each home is sold in fractions to individual buyers,” says Grady. “The concept is known as ‘fractional ownership’ and is quickly replacing the concept of ‘timeshares’ in the United States and throughout the world. Different from a timeshare, a fractional property offers ownership in real estate.”

Some other transactions the company has recently serviced in the West include a $10.4 land acquisition loan for Arkland Investment in Las Vegas; $9.4 million in land acquisition financing for the Kiahuna Poipu Golf Resort in Kauai, Hawaii; a $67.5 million refinance/construction loan for phases one and two of Gaslamp Square in San Diego; $42 million in financing for the Midtown Village Development in Orem, Utah; and a $12 million loan for the Brightwater Club land acquisition in Gypsum, Colorado.

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 handling 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.”

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 project and its 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.

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 four 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.

©2005 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.