FEATURE ARTICLE, OCTOBER 2005

CLIENTS COUNT
The Marshall Group has found success in every region of 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 already it has 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-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 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 augment further 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 Chandler, Arizona, and Minneapolis. The entities of Hallock Bank and BankFirst Corporation, along with The Marshall Group, now have 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. “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, 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 the Wyndham Resort and Golden Door Spa in Weston, Florida. The client needed a renovation and conversion loan for the project.   “It is a complex and interesting project with nine buildings and the construction of a world-class resort and spa,” says Grady. “Most lenders were unable to get their arms around the entire project.” The Marshall Group was able to complete the transaction by listening closely to what the client needed. “Our underwriters and analysts were able to structure the loan so that it made sense to both the borrower and our bank participation group,” says Grady.

Some other transactions the company recently has serviced in the Southeast include an $11.5 million land acquisition loan for Ayres Rock Ltd. in Orlando, Florida; $28 million in financing for the Beau Rivage condominium development in Panama City, Florida; an $11 million acquisition loan for the Executive Inn Rivermont in Owensboro, Kentucky; a $71 million land acquisition/development loan for Paradise Preserve in Cape Coral, Florida; and a $26 million construction/mini permanent loan for the Hilton New Orleans French Quarters in New Orleans.

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 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.

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 adequately will 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.

©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.