Thomas F. Moran is the Founder and Co-Chairman of Moran & Company. Routinely crisscrossing the country and providing leadership and support to each of Moran & Company’s offices, Tom’s national perspective and relationships continue to enhance the firm’s brand.
Tom started his career as a tax consultant with Arthur Andersen, moved into investment banking and ultimately brought those two practice experiences together when he founded Moran & Company in 1971 as an investment banking firm advising on investments in real estate, oil and gas, and cattle feeding.
Tell us a little about the history of Moran & Company.
Moran & Company was originally founded in 1971 and from then until 1986, it secured equity from individual investors for the construction of 13,500 new apartment units. The company assisted those partnerships in the arrangement of debt, especially low floater bond financing aggregating approximately $850 Million. In 1986, the 1986 Tax Reform Act stopped virtually all individual investment in real estate and the lack of liquidity caused an eight year real estate recession. At that time, Mary Ann King and I restructured and retained all 33 of the Moran partnership assets with no partnership asset having to be returned to a lender. In 1994, coming out of the real estate recession and facing a totally different real estate tax paradigm, Mary Ann and I completed our first multifamily property sale for Kemper Financial to Heitman and Moran & Company’s brokerage business was born.
What do you think makes Moran & Company so different?
It has always been clear to me that the conventional brokerage model creates inefficient incentives for its brokers. Moran & Company’s financial structure is based on an investment banking model where all employees are salaried and the profits are shared. In this way, across the country, everyone at Moran & Company is motivated to work collaboratively toward a single shared goal of creating value for our clients, rather than in silos of zero-sum profit centers that is the conventional brokerage financial structure. This investment banking model has enabled Moran to hire talented real estate professionals outside of brokerage and to establish regional offices which function as a true partnership with all other offices as well as with our clients. Our partners not only like and respect each other, but they enjoy the energy and collaboration of building a business together.
Since inception, Moran & Company has been a leader in the quality, analysis and presentation of sales materials and in our tenacity to achieve the best pricing for our clients. During the past four years (2013-2016), we have raised equity and executed sales transactions of approximately $4 billion per year. I am proud of the partnership that we have built and the space that we have carved out for our independent real estate brokerage company, emphasizing, above all, client service and quality execution.
What is it that you enjoy so much about real estate and real estate brokerage?
Real estate is an exciting but humbling business. Coming from a legal, tax and investment banking background, I love how dynamic our industry is. Pricing, valuations, economics and market fundamentals are always changing. Every assignment we take on presents a different set of challenges. There is not a day that goes by that I don’t draw from and leverage my 40 years of legal, tax or real estate experience to find solutions for our clients.
What are you most proud of and what are you looking forward to?
As the founder of the company, I am most proud of the culture of partnerships and people that I have brought together. I am also incredibly proud of my son Tom Jr. who is enjoying and contributing to the success of the firm. Mary Ann and I have formed a new Executive Committee with David, Pete, and Tom Jr. taking on additional leadership responsibilities with the firm. I am excited to continue building the Moran brand with our new Executive Committee and creating even more value for our clients.