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BGC Acquires Huge Atlanta-Based Multifamily Brokerage Outfit in Deal that Stirs Market

ATLANTA (Dec. 1, 2014) - ARA, the Atlanta-based monster of the multifamily investment advisory (brokerage) business, is about to be absorbed by the ever-growing BGC Partners.

BGC, owner of Newmark Grubb Knight Frank brokerage, has agreed to acquire Apartment Realty Advisors (ARA) for $110 million, according to this breaking alert from Ralph Bivins of RealtyNewsReport.com. Official word came from James "Jimmy" Kuhn, the cool-looking guy pictured to the left.

ARA, which touts itself as "the largest privately held, full­service investment advisory firm in the nation that focuses exclusively on the brokerage, financing and capital sourcing of multihousing properties," has called Atlanta home for a long time, or at least since I covered commercial real estate in the city. Atlanta is home to ARA's National Office and C-level executives including COO Lisa Robinson.

The Wilbert Group represents MHA, the Southeast's premier multifamily investment brokerage and a competitor to ARA. MHA ranked No. 10 on Atlanta Business Chronicle's 2014 Top 25 Commercial Real Rstate Brokerages List. ARA placed 17th.

Here's the official word from ARA: “We are delighted to announce this agreement with BGC and to join with Newmark Grubb Knight Frank as we work together across the capital markets spectrum. The combined resources will prove of great benefit to our business, our employees and, most importantly, to our clients,” said Blake Okland, Chairman of the Executive Committee of ARA and Principal of ARA’s Carolinas member.

Okland's counterpart in Atlanta is John Weber, a great guy who is a dominant player in multifamily sales here. He's pictured to the right.

Of special interest on the national level is the growing influence of Jimmy Kuhn in the Southeast. I met Jimmy when Newmark worked hard to lure away some key Julien J. Studley execs to open Newmark's first Atlanta commercial brokerage business. 

Kuhn's presence grew big time with the recent DTZ acquisition of Cassidy Turley and now is even bigger. Erika Morphy of GlobeSt.com tells it this way:

ARA's acquisition is another sign that the commercial real estate brokerage community views consolidation as a key growth strategy. In this case, bringing ARA under BGC's corporate umbrella will give Newmark Grubb Knight Frank a sizeable leg up in the market. BGC acquired NGKF in 2011.

It's cool to see Kuhn emerge as a national figure. He's a real estate reporter's dream - he tells you what you want to know, and he uses colorful language. See for yourself in this snippet from an interview I had with him in 2002 while at The Atlanta Journal-Constitution.

BYLINE:    TONY WILBERT; Staff 
DATE: April 2, 2002 
PUBLICATION: Atlanta Journal-Constitution, The (GA) 

Newmark & Co. came to town Monday and opened an office with 20 workers from competitor Julien J. Studley.

 Newmark Southern Region, part of the New York-based commercial real estate firm, will be led by Bert Sanders and Patrick Duffy, both of whom resigned last week from Studley's Atlanta office. They were joined at Newmark by several other former Studley brokers -- James Cate, Kay Davis, Marty Pinover, Ed Kercher, David Todd and Monty Harris.

However, Newmark had to open the office without the former Studley executive it wanted most: Neal Golden. It was his resignation that prompted the others to quit Studley's Atlanta office last week.

Newmark President Jimmy Kuhn said he still is pursuing Golden and hopes he will lead Newmark's national expansion.

"We're going after him with as much gusto as [New York Yankees owner] George Steinbrenner pursues free agents," Kuhn said in at interview.

 

Battle to Be No. 3 Commercial Real Estate Services Firm Heats Up (With Cool Graphic)

As several top teams battle to crak the Top 4 and grab a spot in the first-ever NCAA college football playoffs, there's a similar competition emerging in the commercial real estate services industry.

It's a battle to be the No. 3 services firm behind industry stalwarts JLL and CBRE, and The Wall Street Journal is treating fans of CRE news to ESPN-like coverage of the game. The paper even included this awesome graphic that sets the stage.

Earlier this week, WSJ reporter Peter Grant explained the importance of winning in  an article about how DTZ - freshly infused with broader service offerings, thanks to the completion of its acquisition of Cassidy Turley - will aggressively fight for the No. 3 position. To land the No. 3 spot, DTZ will have to fend off Cushman & Wakefield, Savills-Studley, Colliers International and Newmark Grubb Knight Frank. 

Just as in the college football playoff hunt, we expect lots of positioning, battles and chatter in the industry as this story plays itself out. We can't wait to see which firm emerges as No. 3 behind CBRE and JLL (whose Atlanta office is a client of The Wilbert Group).

 

 

Halloween Retail Merger Renders EDENS Major Player in Buckhead

ATLANTA (Nov. 1) - Houston-based AmREIT took the opportunity late last night to announce that the retail REIT has agreed to be aquired by EDENS in an all-cash transaction valued at $763 million (or $26.55 per share). The impact on Atlanta's retail market, which AmREIT entered in 2011, should be interesting.

In fact, the acquisition likely will position EDENS as the leading owner of upscale strip centers in Buckhead, where Simon Property Group dominates the mall scene. EDENS (not sure why they do name in all CAPS) owns Lenox Marketplace and Buckhead Market Place, anchored by the very busy Whole Foods on West Paces Ferry Road, and will add a couple more through the acquisition.

Just before the Halloween night announcement, AmREIT had been cranking up its Atlanta portfolio. Only two months ago, the REIT expanded its Atlanta presence with the acquisition of Tuxedo Festival Shopping Center in Buckhead. AmREIT execs evern hinted at the possibility of scraping Tuxedo Village and replacing it with a mixed-use development.

Closer to home, the transaction means EDENS would come to Brookwood Hills, where South Georgia native and former star college QB Nate Hybl just opened gusto! Wood Fire Grill at the "Irreplaceable Corner" of Peachtree and Brighton roads (see photo).

Cassidy Turley Sale Valued at $475 Million to $600 Million

WASHINGTON, D.C. (Sept. 24) - The expected acquisiton of commercial real estate services firm Cassidy Turley by a private equity group headed by TPG finally was announced this week - with the omission of a key piece of information - The Price.

But, thanks to Peter Grant and others at The Wall Street Journal, we know the likely value of the transaction came in at between $475 million and $600 million, which includes $75 million in debt. That's a big chunk of change, but no one involved "is getting super-rich from the sale," Grant writes in today's Plots & Ploys column.

With some 500 shareholders at Cassidy Turley - none of whom owns more than a 5 percent stake - no one will walk away with a 9-figure payday. The item appears under the somewhat snarky (in a good way) headline. "PALTRY PAYOUT".

TPG, whose partners include PAG Asia Capital and Ontario Teachers' Pension Plan, will combined Cassidy Turley with DTZ - if the DTZ deal closes as expected. Better yet, the new firm will retain the DTZ name but will have Cassidy Turley CEO Joe Stettinius as its CEO of the Americas.

The Wilbert Group has worked with Joe in the past, having helped CT with the annoucement of his ascension to CEO in October 2012. We subsequently landed a 30-Minute Interview feature with Joe in The New York Times a mere two months later.

The Wilbert Group also represented Cassidy Turley Atlanta when it entered the local market and is proud to have helped introduce the brand in the ATL. Of course, if all goes as planned, the Cassidy Turley brand will become a footnote on the new DTZ website.