After returning from service in the Navy during the late stages of World War II, Bill Nicholson was selling metal siding to sawmill customers throughout the Pacific Northwest. During his travels, Bill observed that sawmills needed an efficient way to mechanically remove bark from logs as they entered the mill. After much development and experimentation, he introduced his first machine and founded Nicholson Manufacturing in 1948. From 1948 until 2017 the Company, which became Northern Industrial Inc. (NII), expanded to become the dominant global mechanical log debarking firm. Through its various subsidiaries, NII had employees and facilities in all the major timber growing regions and countries of the world. NII also built businesses in sawmilling, pulp chip production, aerospace tooling, pneumatic ship unloading, marine doors and windows, and commercial real estate. In 2017, the Company successfully transitioned ownership of the manufacturing businesses to a public buyer. A great source of pride is that all NII employees and operations were retained, and have continued to thrive under the new ownership. Since the sale, NII has concentrated on expanding our commercial real estate portfolio.
The company is now in its second generation of family ownership. As Chairman, Scott Nicholson is deeply involved in the strategic and portfolio decisions of the Company. NII has retained their lean Corporate Staff, the same group who lead the manufacturing businesses. Scott Howell has been the CEO since 1997 and prior to accepting that role was an outside director from 1987. Stephen Smith has been CFO since 2008. As a team, these three executives comprise the investment committee for the firm and are responsible for all strategic decisions. The balance of the NII staff is involved in control, risk management, facility management and underwriting functions.
Our process
NII prides itself on being strategic and entrepreneurial. While we take a multi-generational approach to our business and think in the long term, we move quickly. We built our firm by conducting ourselves honorably and creating fair value in all our dealings, and these traits are core to our commercial real estate activities.
In short, we are:
Our investments
Our investment thesis is as focused, simple and straightforward as our management philosophy. We look for:
The company is now in its second generation of family ownership. As Chairman, Scott Nicholson is deeply involved in the strategic and portfolio decisions of the Company. NII has retained their lean Corporate Staff, the same group who lead the manufacturing businesses. Scott Howell has been the CEO since 1997 and prior to accepting that role was an outside director from 1987. Stephen Smith has been CFO since 2008. As a team, these three executives comprise the investment committee for the firm and are responsible for all strategic decisions. The balance of the NII staff is involved in control, risk management, facility management and underwriting functions.
Our process
NII prides itself on being strategic and entrepreneurial. While we take a multi-generational approach to our business and think in the long term, we move quickly. We built our firm by conducting ourselves honorably and creating fair value in all our dealings, and these traits are core to our commercial real estate activities.
In short, we are:
- Honorable and ethical. We say what we'll do and do what we say
- Entrepreneurial. We are creative and efficient in our processes
- Long-term investors. We buy and hold properties with a multi-generational perspective
- Financially conservative. Our balance sheet is exceptionally strong and we frequently are a cash buyer. While we believe in leverage, we have spent all our 70 years in highly cyclical businesses. We expect to experience further volatility and are prepared for it.
- Closers. When we pursue an acquisition we almost always close. We don't want to waste anyone's scarce resources.
Our investments
Our investment thesis is as focused, simple and straightforward as our management philosophy. We look for:
- Industrial and office buildings
- Our target building value is $10-30M
- Cash flow focused
- Assets ready to stand the test of time
Scott Nicholson
Chairman and Owner
Scott Nicholson has been the Chairman and owner of NII since 2007. Prior to becoming Chairman, Scott held several senior leadership positions for the Company in global revenue for the forest products equipment businesses. He joined the Company Board as an internal director in 2002. During Scott's tenure he has been deeply involved in all major strategic efforts and the transition to focus on commercial real estate. Prior to joining NII in 1995, Scott held management positions within PACCAR in the Seattle area. He is a graduate of Seattle University.
Scott Howell
Chief Executive Officer
Scott Howell has been involved with NII since 1987 when he joined the Board of Directors as an independent member. He became the CEO in 1997, succeeding NII founder T. W. "Bill" Nicholson. During Scott's tenure, the Company has gone through many changes, including both a transition of ownership from Bill Nicholson to his son Scott Nicholson, and a strategic realignment of the Company focus in the forest products equipment and commercial real estate industries. In 2017, Scott led the successful sale of the NII global manufacturing businesses to a public buyer who has continued the NII strategy that resulted in dominant market share. Scott began his leadership career in 1978, joining Weyerhaeuser Company after receiving his MBA from the University of Washington. Between 1978 and 1997 Scott enjoyed the opportunity to work in many businesses within Weyerhaeuser and in several locations, including the US Southeast, Southeast Asia and South America.
Stephen Smith
Chief Operating Officer & Chief Financial Officer
Stephen joined the company at the beginning of 2008 as Chief Financial Officer, and was responsible for providing Financial, Legal, Tax, and Administrative leadership on a global basis to the organization’s twelve companies. Stephen guided the sale process of the forest product groups to a public buyer in July 2017, then assumed the additional role of Chief Operating Officer, where he works closely with Mr. Howell to develop the updated strategic direction of the company, identify and purchase properties, and is responsible for the subsequent operations of properties acquired. Prior to joining the company Stephen held numerous senior-level executive positions in diverse industries including technology (software, hardware, managed services), transportation, services and manufacturing, in domestic and multi-national companies ranging in size from small VC financed start-ups to publicly trades entities. He is a graduate of the University of Washington.