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Monday, 01 December 2014

NGKF's Parent to Buy Apartment Realty Advisors for $110Mln

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Commercial Real Estate Direct Staff Report

BGC Partners Inc., the parent company of property broker Newmark Grubb Knight Frank, has struck a deal to buy Apartment Realty Advisors and its member affiliates for a total of $110 million.

The acquisition gives NGKF one of the country's most-active brokers of properties in the multifamily sector. BGC had acquired NGKF in 2011, and has been beefing up its capital-markets platform since then, adding brokerage professionals in key markets, such as New York, Washington, D.C., and Chicago.

"We expect ARA to strengthen NGKF's position as one of the top commercial real estate advisory firms and further add to the value and importance of real estate to BGC's overall business," explained Howard W. Lutnick, who serves as chairman and chief executive of BGC. Lutnick also heads investment bank Cantor Fitzgerald.

ARA has about 100 brokers in 28 cities across the country and during the first half of the year had handled more than $3.3 billion of property sales, up 42 percent from a year earlier. And for all of last year, it handled $10.2 billion of deals.

According to Real Capital Analytics, ARA is among the most-active brokers of apartment properties in the country. In a ranking for the first half of the year, it placed fourth, behind CBRE, Marcus & Millichap and HFF.

"ARA represents the gold standard within the United States for the sale and financing of multi-housing properties," explained James D. Kuhn, president of NGKF and head of its capital markets operation. The company's "recent volume growth has outpaced the overall commercial sales market," he said, "making it a compelling business proposition and a strong strategic fit for our capital markets platform."

NGKF said its acquisition will be completed in stages before the end of the year. It noted that ARA is expected to generate more than $100 million of annualized revenue and pre-tax distributable earnings of more than $20 million. It added that its total purchase price could exceed $110 million as a result of earn-out clauses in the purchase agreement, if performance targets are exceeded.

Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.

 

 



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“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

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Additional Info

  • Syndicate to Realpoint: No
  • Subject: Mergers & Acquisitions (M&A)
  • Company: Apex Mortgage Capital Inc.
  • Valuation: Between $100 million and $150 million
  • Private: No
Read 1304 times Last modified on Monday, 01 December 2014

Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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