‘More Than The Scott And Scott Show’: Citadel Partners Names New Generation Of Leaders

With four different generations in the workforce, companies inside and outside the commercial real estate world are grappling with future leadership questions, weighing potential risks to company performance and valuations as many of their longest-tenured employees approach retirement age.

Dallas-based Citadel Partners managed to avoid that by planning ahead more than a decade ago.

When co-founders Scott Jessen and Scott Morse established Citadel Partners nearly 12 years ago, they said it was always their intention to build a regional real estate advisory firm that would outlive them. Now, they've named two new partners, establishing the next generation of leadership to guide the business after the founders eventually step away.

The firm announced earlier this month that Andy Goldston and Mac Morse had been promoted to equity partners and would be joining Citadel Partners’ leadership team. The new partners embodied all the values of the organization and both have been consistent producers for the company, Scott Morse said.

“This whole partnership idea goes back to the naming of the company in 2012, and it's all part of our original strategic plan that we built,” Scott Morse said. “We've always had the idea and the emphasis in creating something that would be a lot more than just the Scott and Scott show.”

The promotions seemed natural to all involved as the managing partners had included Goldston and Mac Morse, Scott Morse's son, on decisions for the past couple of years, seeking their input on the operational side of the business.

“I joined Scott and Scott in 2013, and this is something that was discussed in the initial conversation – the opportunities that are presented at Citadel,” Goldston said. “It's something that I've been excited about, and they're true to their word.”

Goldston led Citadel Partners’ expansion into Fort Worth and helped set up a team that added the asset services vertical as well as a portfolio of more than 850K SF. 

Since joining the firm in 2015, Mac Morse has specialized in tenant representation and acquisition and disposition assignments in addition to being repeatedly recognized as a top producer for Citadel Partners. 

“One of the things that I think allowed Andy and I to really have a good understanding and grasp of what the role entails is both Scott and Scott's willingness to bring us into the fold and … lead by example,” Mac Morse said. “They truly do value our input, and [these roles are] something that we feel like we can help grow the company in.”

In addition to their existing work, Citadel’s new partners will be focused on retaining clients, developing new business and mentoring new and existing team members.

“Last thing we wanted to do was to promote these guys and have them stop doing what they do so well because they are really, really good at what they do,” Jessen said.

Citadel Partners has long had a performance-oriented culture. Striking the balance between growing the company and keeping it an enjoyable place to work is what tops the new partners' goals for their new roles, Goldston said.

After working together for 30 years, Jessen noted that some of the success that he and Scott Morse have experienced is because of their complementary skill sets. That's something the managing partners saw in Goldston and Mac Morse as well.

The founders have always prioritized planning for the future, including what to do in case of disaster. Scott Morse said that plan has been in place since day one.

“You'd be amazed at the numbers of conversations that Scott and I have had with people from around the country that don't really have an effective succession plan in place,” Scott Morse said. “We felt it was paramount to have that foundation built.”

Generational leadership change has been rolling out throughout the commercial real estate world as C-suites prepare for their companies’ next chapters.

Dallas-based Lincoln Property Co. saw co-CEOs Clay Duvall and David Binswanger succeed founder and Chairman Mack Pogue and Duvall's father, CEO and President Bill Duvall, last year.

Brookfield CEO Bruce Flatt indicated earlier this year that 36-year-old Connor Teskey, who has skyrocketed through the ranks since joining the asset management titan in 2012, is his likely successor.

Succession plans are something that could eventually move many DFW office locations to the suburbs, noted Jeremy Duggins, a partner with Cawley Partners, during Bisnow's Future of DFW Office event Oct. 23 in Addison.

As more companies see baby boomer leadership retire, Duggins said much of the next generation being promoted to executive positions are already living in the northern suburbs after being priced out of homeownership in established Dallas neighborhoods. 

“The leadership class of all these companies over the next 10 years is really going to transition,” Duggins said. “You're [already] seeing these groups moving on to this next generation of leadership. Those leaders are going to be living in these suburbs, where their kids are on the soccer teams.”

Back at Citadel Partners, Jessen and Scott Morse said they don’t have any immediate plans to retire, even with the foundation for the next generation lined up. Scott Morse borrowed a line from TIG Real Estate Services' Wayne Swearingen, who has nearly 60 years of experience in Texas real estate, to explain.

“He said, ‘Morse, my best deal is still ahead of me,’” Scott Morse said. “And that's the way we feel.”