LaSalle Investment Management is a real estate investment advisor that mainly serves institutional clients. Unlike many financial advisor firms, LaSalle is focused on just one asset class: real estate. Its primary service is advising clients on various real estate-related investments.
The company, which has a client base of more than 400 investors, currently has $20 billion in global assets under management. It has 24 offices located across 17 countries, with a total of more than 700 employees.
LaSalle Investment Management Background
LaSalle was founded in 1980, and it became an SEC-registered investment advisor in 1983. The company was initially a subsidiary of LaSalle Partners, which in 1999 merged with international real estate services firm Jones Lang Wootton. The merged entity, Jones Lang LaSalle Incorporated, remains LaSalle's parent company.
What Types of Clients Does LaSalle Investment Management Accept?
LaSalle's main clients are the private funds it sponsors and separate accounts, which it refers to as custom accounts. Custom account holders include government plans, pension plans and insurance companies. It also works with non-traded REITs and special purpose vehicles, which can hold titles on property or act as borrowers for loans. In addition, LaSalle is an investment advisor to JLL Income Property Trust, a "non-listed, daily-valued, perpetual life public REIT."
LaSalle requires investment minimums for its private funds and for custom account clients, though it may lower these minimums at its discretion. The minimum investment required for private funds is typically $5 million, though this minimum varies by fund. For custom account clients, LaSalle requires a minimum investment of $500 million.
Services Offered by LaSalle Investment Management
The primary service that LaSalle provides to clients is offering advice on various real estate-related investments and subsequently managing these portfolios. It can also provide the following services:
- Strategic research
- Guidance on investment strategy
- Acquisitions and dispositions
- Cash management
- Financial reporting
- Due diligence
- Client services
LaSalle Investment Management Investment Philosophy
LaSalle invests in both private and public real estate equity and debt. It uses a wide range of investment vehicles that span a spectrum of geographies and risk and return levels including:
- Real estate securities
- Commingled funds
- Separate accounts
- Real estate debt and special situations
- Co-investment programs
- Global indirect investments
- Strategic partnerships
LaSalle takes a top-down and bottom-up approach to portfolio creation. Aside from commingled investment funds, LaSalle attempts to tailor its services to meet clients' individual needs.
It offers three primary asset allocation strategies: core, value-add and opportunistic. Its core strategy seeks investments that provide stable current income and potential growth in line with a low to moderate level of risk. The value-add strategy seeks greater returns, with a moderate level of risk. The opportunistic strategy assumes a high level of risk and returns are primarily dependent on future appreciation. LaSalle can also tailor its investment strategies to limit investments to particular geographical locations or types of real estate.
Fees Under LaSalle Investment Management
LaSalle's fees vary by service type. Generally, it charges clients one of the following types of fees for its services:
- Management and/or advisory fee
- Performance or incentive fees
- Acquisition fees
- Disposition fees
LaSalle notes that for its custom accounts it typically charges a fee based on the size of the portfolio in addition to an acquisition fee. In some cases, clients may also pay a disposition fee and an incentive fee.
LaSalle does not have predefined fee rates. Instead, it negotiates the type of fees and the amount charged with each custom account holder.
Neither LaSalle nor anyone under its direct supervision has disciplinary issues on record. However, LaSalle's parent company, Jones Lang LaSalle Incorporated, does have a disclosure on record that's noted in LaSalle's Form ADV as a disciplinary issue of a LaSalle advisory affiliate. In 2013, the SEC alleged that Jones Lang LaSalle "was the cause of violations by certain of its officers and directors of certain federal securities laws and SEC rules requiring prompt reporting on SEC forms of transactions or holdings, which led to inaccurate statements in [Jones Lang LaSalle’s] proxy statement with respect to the timely filing of such forms." Jones Lang LaSalle paid a $150,000 fine to settle.
Where Is LaSalle Investment Management Located?
LaSalle’s global headquarters are located in Chicago, on West Wacker Drive. The firm also has offices in Atlanta, Baltimore, Los Angeles, New York, San Diego and San Francisco. Outside of the U.S., LaSalle has offices in Mexico and Canada, as well as in the Asia Pacific region and Europe.
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