KLNB Acquires Rockville-Based Commercial Brokerage
The D.C. region's largest homegrown private brokerage has just acquired the 16-year-old Edge Commercial Real Estate, expanding its tenant representation and multifamily service lines in the process.
KLNB will add 32 employees, including 18 brokers, with the acquisition, increasing its headcount by 20%, the company said in a press release Tuesday. The merger will also allow the firm to add a multifamily division. The firms didn't disclose the financial terms of the deal.
"The acquisition of Edge fits perfectly in our timeline for smart and disciplined progression," KLNB President Marc Menick said in a statement. "By acquiring Edge, we will be able to do virtually everything we’re already known for, but at an even higher level and a wider reach.
"And in the case of multifamily, this opportunity brings the KLNB customer experience to a whole new sector that we have wanted to approach for some time," he added.
Rockville-based Edge recorded $492M in transaction volume across 231 transactions in 2022, according to the release. In addition to its foray into multifamily, KLNB is adding a six-person tenant rep team through the acquisition, substantially increasing its capabilities in that sector.
Edge's services include seller and buyer representation, office-to-residential conversions, adaptive reuse and site assessment. The brokerage also manages 5M SF of properties, which will be rolled into KLNB Asset Services, a joint venture with Divaris Real Estate.
Leaders at Edge and KLNB have been discussing the possibility of a merger since 2018, according to the release. But when Edge founder and Managing Partner Joe Sutton announced he was leaving the firm in late 2021 for other business ventures, discussions began heating up.
"This will be a fantastic opportunity for the Edge team," Sutton, who wasn't with Edge at the time of the merger, said in a statement. "Joining KLNB will give them a clear new path for professional development, and the ability to work with a firm that offers the same level of service and reach as the largest commercial brokerages but retains the close-knit culture that Edge has also been known for."
Edge partner Marc Balamaci will remain on as a partner post-merger. Six other unnamed brokers will be principal partners at KLNB as part of the merger, the firm announced.
KLNB is based in Washington, D.C., and with the Edge acquisition will add its fifth office and first in Montgomery County. It also has offices in Baltimore and Columbia, Maryland, and Tysons, Virginia.
Founded in 1968, KLNB last year reported a record $1.8B in transaction volume, a 3.3% increase from the prior year.
The deal comes amid a period of consolidation for brokerages in the area. Transwestern has acquired two firms this year alone, absorbing MGA and West, Lane & Schlager. Those mergers also boosted the Houston-based brokerage's tenant advisory team.
