J
ay Neveloff, a 37-year veteran of Kramer Levin, is poised to lead one of the nation's most successful real estate practices on an even bigger scale after his firm merges with London- and Sydney-based global law firm Herbert Smith Freehills (HSF) on June 1. The combined firm, HSF Kramer, will be well-positioned to scale its commercial real estate business beyond the United States.

    Kramer Levin's Band 1-rated U.S. real estate practice is joining forces with an HSF global real estate business that also carries Band 1 rankings in the UK and Australia. Neveloff said the two firms discovered many similarities during merger discussions, including a strong overlap of clients. He will lead the combined firm's real estate practice as chair of real estate in the US.

    The merger creates one of the top 25 law firms in the world by revenue, with its U.S. operations projected to generate around a quarter of those global profits. The combined HSF Kramer will comprise 2,700 lawyers across 26 offices worldwide. Prior to the merger, HSF had revenue of $1.3 billion for the 2023-24 financial year, while Kramer Levin reported $435.2 million.

    After June 1, HSF Kramer will consist of 46 real estate partners, with 31 from HSF and 15 from Kramer Levin. Neveloff said the combined practice will make them the only firm with top-tier Chambers Real Estate rankings in the US, UK, and Australia. The merger also brings together two firms that have played a central role in guiding revenues at their respective firms.

    The addition of an international presence will open more doors for Kramer Levin to expand into multinational deals, while HSF gains a bigger U.S. foothold. Neveloff said the cultural fit between the two firms was evident during meetings with HSF partners from the UK and Australia, who visited New York in advance of the merger.

    The combined firm plans to hold regular meetings with the HSF UK and Australia real estate teams to enhance Kramer Levin's knowledge of global issues affecting the CRE space. Neveloff said HSF will aid Kramer Levin's real estate practice by bringing technology expertise, including artificial intelligence tools that are big time savers for lawyers preparing documents.

    The merger also arms Kramer Levin with comprehensive areas of experience not as easily available when smaller in scale. Neveloff cited data centers as an example, a fast-growing CRE sector where HSF has extensive global expertise. Despite market challenges, Neveloff remains bullish on CRE opportunities in New York and other U.S. gateway markets.

    The merger is taking flight at a time when Neveloff and Berman have seen increased demand from landlords seeking recapitalizations on maturing loans for distressed Class B office properties. As more realistic pricing levels settle in within a higher-for-longer interest rate environment, more property owners will seek opportunities to transact, with HSK Kramer playing an integral role bringing deals across the finish line.