SperryCGA Broadens Its Reach into Capital Markets: Q&A with Mark Hinkins

Sperry Commercial Global Affiliates (SperryCGA) launched a capital markets business, Sperry RE Capital, this past December, with industry veteran Sam Suzuki joining in January to lead the platform–and hit the ground running. It’s a major component of a 2021 growth story that is also seeing SperryCGA expand its franchise network domestically and globally. Connect CRE caught up with Mark Hinkins, president of SperryCGA, for a deep dive into the company’s expansion.

Q: How is Sperry RE Capital differentiating itself from other intermediaries and other advisory firms?  

A: When we approached Sam Suzuki at Suzuki Capital in Manhattan, it was with the intent of creating a national capital markets group which would be rebranded Sperry RE Capital and complement both the expanding business of both our SperryCGA affiliate brokerage network and Sam’s successful debt & equity business. 

Q: What made the current moment look like an opportune time to launch? 

A: We had been looking for the right partner to expand our reach into capital markets and taking our time to ensure we found the right cultural fit, and the right fit for our clients, our affiliates, and our U.S expansion plans in the Northeast.

Establishing a presence in the region with a Capital Markets group was the first step in expanding our SperryCGA
network. Sam’s team has entrepreneurial leadership, which is the foundation upon which SperryCGA is based, and ethics, which mirrors our “guiding principles.” 

Q: How does the capital business fit into the SperryCGA franchise network? What is the value to franchisees? 

A: Originally, Sam thought he’d be busy targeting business both inside and outside of that generated by our SperryCGA affiliates; however, his team was bombarded with new business from our affiliates on day one. It’s a perfect combination of a coast-to-coast transaction network of brokerage offices partnering with debt & equity sourcing. We have so much work in the hopper. Sam is ramping up his team to accommodate significant funding business, which exceeds both of our initial expectations. 

Q: What was behind the decision to base the new capital markets business on the East Coast in New York City? Is it due more to New York being a financial center or to anticipating that many of Sperry RE Capital’s clients will be based there (or, perhaps, both)? 

A: Quite simply, our CEO Rand Sperry told Sam, you’re not a capital markets group unless you’re headquartered in New York City. Well, Sam was already successfully established with his company, Suzuki Capital in Manhattan, so locating Sperry RE Capital there was a natural step to achieving the successes we have seen since launching earlier this year. 

Q: What areas of the U.S. are you most targeting and why? 

A: We have coast-to-coast coverage from our SperryCGA brokerage affiliate network and Sperry RE Capital provides funding solutions across our entire platform. 2022 will see us add new affiliates across the country with opportunities in many key markets. From Sperry RE Capital’s perspective, our expansion in the Midwest and Northeast mirrors Sam’s plans to develop its debt & equity business there and then focus on the West Coast, where SperryCGA has an established and significant footprint.

Q: What will be the typical loan sizes you will focus on?

A: The average deal size being done is across the board ranging from $2 million to larger institutional grade debt in
the $200 million range. Sperry RE Capital has term sheets out across all these sectors. Of course, Sperry RE Capital, while seeing deals within the Sperry group of companies and particularly from our SperryCGA brokerage network, wants to see all the deals, and is targeting business both within and outside of Sperry.

Q: Are there “sweet spots” or focal points in terms of either property types or borrower types? Do you intend to expand from these focal points in the future? 

A: We are continually expanding our transaction brokerage services into new fields, beyond NNN, office, retail, multifamily, industrial. As we add these services so will our equity & debt coverage expand through Sperry RE Capital. It’s part of our short- to medium-term plan as we grow the Sperry real estate brands to accommodate cross-country activity.

Q: With a big international focus as well, what countries do you see expansion opportunities in?

A: We entered into a strategic partnership earlier this year with a leading global facilities management company, Institutional Real Estate Partners, who have committed to opening 21 international franchised SperryCGA offices in 16 countries by 2024. The first of these opened in April in Mexico City, with our first Middle East and two European offices set to open later this year, as well as our first Pacific Rim affiliate office.