Welsh Cos., third largest commercial real estate firm in Twin Cities, is sold to Colliers

The 40-year era of local ownership for the Twin Cities' third largest commercial real estate firm, known for most of its existence as Welsh Cos., ended this month with the purchase of a majority stake by the global real estate services company Colliers International of Toronto.

Its top local leader, Jean Kane, remains at the helm as a shareholder and chief executive of what is now officially called Colliers International Minneapolis-St. Paul. In an interview, she said she and her team have been "energized" by the firm's new relationship with a company that boasts a presence in 68 countries.

"What excites me the most is that I now have a partner that understands and appreciates our business model and is encouraging and supporting growth for our company," she said.

"And importantly, there is a cultural alignment with values. I'm all about people and relationships and I really feel we have the right partner to move forward. It really is a turning point for us in that we're now positioned for building the company into the future."

The acquisition, announced April 3, includes the Minnetonka-based company's brokerage, property management, facilities and architecture divisions. The parties did not disclose the terms of the deal.

Kane first joined Welsh Cos. in the mid-1980s and, by 2003, had risen to president and chief operating officer. Now with the acquisition, she says, her aim is to tap Colliers' resources to keep expanding, especially in the corporate real estate services, which has become the local firm's top growth area.

"Our customers are real estate investors and those who lease and occupy real estate, and especially since the recession, we've become a dominant player in what we call corporate solutions, which can include transaction management, project management … basically supplying a whole cadre of services. We'll be expanding in that area."

In 1981, the pair expanded the company from its construction roots, adding a real estate brokerage and property management services operation. By the mid-1980s, it had grown to 50 employees and was managing its first portfolio of industrial buildings. Welsh retired and Kane was first hired to work in the new property management operation during that time.

The next 10 years under Doyle's leadership saw Welsh grow quickly and further diversify as a real estate service provider to corporate clients, seen as a hedge against the cyclical ups-and-downs of the real estate industry. By the mid-1990s, it had 16 million square feet of commercial properties under management and had grown to 250 employees.

Kane became an equity partner in 2004, and by 2013 had obtained a majority stake in the firm. Doyle, meanwhile, has since gone on to start a new real estate firm, Wildamere Properties, and remains a minority shareholder in Welsh Construction, which was not part of the Colliers transaction.

The company first partnered with Colliers as an affiliate in 2011, after previously doing so with the national real estate firms NAI Global and GVA Worldwide. But that affiliation status turned into much more this month when Colliers made its move to expand its footprint in the Midwest.

Jay Hennick, chief executive of Colliers International, visited Minnetonka last week to meet his new Twin Cities crew. Kane said it was a moment that inspired much anticipation for what's ahead.

Don Jacobson is a freelance writer based in St. Paul. He is the former editor of the Minneapolis-St. Paul Real Estate Journal.