Sherman Associates Company Profile

Background

Sherman Associates, established in 1979, is a Minneapolis-based commercial real estate development and management firm. With a mission to build neighborhoods, enrich communities, and empower people, the company has developed over 12,000 multifamily units and currently owns and manages over 6,800 multifamily rental units, both affordable and market-rate. Their diverse portfolio also includes over 640,000 square feet of commercial space, five hotels, four Starbucks locations, three restaurants, and two solar gardens.

Key Strategic Focus

Sherman Associates focuses on long-term ownership and development, integrating multiple uses into their projects. Their extensive portfolio encompasses over 40 years of construction and development experience, including over 12,000 residential units, over 770,000 square feet of commercial space, 29 completed condominium projects, and over $4 billion in real estate development. The company emphasizes mixed-use developments that incorporate a variety of housing types and leverage multiple financing tools to meet diverse community needs.

Financials and Funding

In February 2021, Sherman Associates announced a capital commitment from Almanac Realty Investors, the private real estate investment arm of Neuberger Berman. This partnership led to the formation of Sherman Associates Ventures, dedicated to delivering high-quality, environmentally sustainable homes across the Upper Midwest and Mountain regions of the U.S. The collaboration aims to work with municipalities in Minneapolis, St. Paul, Denver, Des Moines, and potential new markets to meet a full spectrum of housing goals.

Pipeline Development

Sherman Associates is the lead housing developer for The Heights, a $550 million redevelopment of the former Hillcrest Golf Club in St. Paul, Minnesota. The project includes over 1,000 housing units, with plans for workforce market-rate, affordable, and deeply affordable housing. The development will feature a mix of high-density and mid-density housing options for sale and rent, focusing on young households, large households, multigenerational households, and seniors. Construction on the multifamily buildings is expected to start in the fall of 2024, with estimated completion in 2029.

Technological Platform and Innovation

Sherman Associates integrates sustainability practices into their developments, seeking to exceed baseline sustainability standards. Many recent projects include solar energy and other green initiatives to reduce environmental impact. The company has complete LEED capabilities and is committed to protecting the planet through sustainable development.

Leadership Team

George Sherman: Founder and CEO of Sherman Associates since 1979, George has led the company in developing over $4 billion in commercial, residential, for-sale, and hospitality assets.

Chris Sherman: President of Sherman Associates, Chris has continued the company's tradition of building affordable housing with a concentration on sustainable design. Under his leadership, the company has achieved high Energy Star scores and integrated solar gardens into their developments.

Jackie Nickolaus: Senior Developer leading the Des Moines regional office, Jackie brings over 25 years of experience in financial analysis, development, and project implementation. She previously worked with Sherman Associates from 2005 to 2014 and rejoined in 2021 to focus on projects in Des Moines and surrounding areas.

Leadership Changes

In May 2021, Jackie Nickolaus rejoined Sherman Associates as a Senior Developer to lead the newly opened regional office in Des Moines, Iowa. She focuses on projects in Des Moines and other opportunities in Iowa and surrounding states.

Competitor Profile

Market Insights and Dynamics

The real estate development industry is highly competitive, with numerous firms specializing in multifamily housing, commercial spaces, and mixed-use developments. The market is characterized by a focus on sustainable and community-oriented projects, with increasing demand for affordable housing and environmentally friendly developments.

Competitor Analysis

Sherman Associates competes with several notable firms in the real estate development sector, including Lincoln Property Company, Equity Residential, and AvalonBay Communities. These competitors focus on developing and managing multifamily housing and commercial properties across various regions. Sherman Associates differentiates itself through its commitment to long-term ownership, sustainability, and community enrichment.

Strategic Collaborations and Partnerships

Sherman Associates has partnered with the Saint Paul Port Authority and the City of Saint Paul for The Heights development, a $550 million redevelopment project. The company is also collaborating with JO Companies and Twin Cities Habitat for Humanity to provide a diverse mix of housing options within the development.

Operational Insights

Sherman Associates' long-term ownership model and commitment to sustainability provide a competitive advantage in the real estate development industry. Their ability to integrate multiple uses into developments and focus on community enrichment positions them favorably against competitors. The company's strategic partnerships and collaborations further strengthen its market position and innovation capacity.

Strategic Opportunities and Future Directions

Sherman Associates aims to continue expanding its portfolio through strategic partnerships and sustainable developments. The company's focus on mixed-use projects and community-oriented developments positions it to meet the evolving needs of urban and suburban communities. Future opportunities include exploring new markets and leveraging technological advancements to enhance development efficiency and sustainability.