Venerable commercial real estate brokerage Grubb & Ellis Co. will sell its assets to the parent company of rival Newmark Knight Frank as part of a prepackaged bankruptcy, the firms said Tuesday.
BGC Partners Inc., a New York financial services firm that acquired Newmark Knight Frank in October, agreed to buy essentially all the assets of Grubb & Ellis for an undisclosed price.
Grubb & Ellis will conduct its asset sale under Section 363 of the U.S. Bankruptcy Code and has commenced Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of New York.
BGC said it would provide financing to support the Santa Ana company's operation during the sale process, which must be approved by a federal judge.
The brokerage industry has been consolidating for several years as smaller shops seek to combine forces in order to better compete with the major firms, said analyst Ben Thypin of Real Capital Analytics Inc.
"The acquisition of Grubb & Ellis, combined with last year's purchase of Newmark Knight Frank, places BGC in a great position to challenge the industry's biggest players," Thypin said.
Read More: http://articles.latimes.com/2012/feb/22/business/la-fi-grubb-ellis-bankruptcy-20120222
The owner of New York’s Empire State Building plans to raise up to $1bn in an initial public offering.
Malkin Holdings filed on Monday its plans to become a publicly traded real estate investment trust on the New York Stock Exchange with the landmark skyscraper and other New York area properties in its portfolio.
The expected range for the price of the Empire State Realty Trust shares was not set with Monday’s filing, which also did not disclose the target market capitalisation of the company.
The landmark 102-floor midtown Manhattan skyscraper – which was at one time the world’s tallest building – is owned by the Malkin family which gained day-today management of the property in 2002 and in full control over it in 2010. For years the property had been at the centre of legal wrangling between the family, property tycoon Donald Trump and the billionaire New York hotel owner Leona Helmsley.
“The Malkins have spent years consolidating control of the Empire State building and other assets. The IPO will allow them and their remaining partners to gain liquidity without relinquishing control,” said Ben Carlos Thypin, director of market analysis at Real Capital Analytics.
Read More: http://www.ft.com/intl/cms/s/0/611b42f0-565d-11e1-a328-00144feabdc0.html#axzz1mIIBkFQs
A recent report from New York–based commercial real estate research firm Real Capital Analytics (RCA) reveals that apartment sales figures closed out 2011 on a positive note. The firm’s “2011 Year in Review” report shows that the fourth quarter of 2011 netted $16.6 billion in sales, the highest quarterly volume racked up since 2007. This marks a 16 percent increase from the previous quarter and a 24 percent bump from fourth-quarter apartment sales in 2010. Among the more optimistic data revealed in the report was the rebound of garden-sector sales.
“While both the garden and mid-/high-rise sectors started losing momentum midyear, garden finished stronger and had an overall better year than mid-/high-rise,” says RCA’s director of market analysis, Ben Thypin. Garden properties ended up 47 percent ahead of the 2010 figures, and it appears that the sales momentum experienced in the fourth quarter will carry over into the first quarter this year. “Given the stable cap rate environment for garden properties, compared to sinking caps in mid-/high-rise, that trend is likely to continue in 2012,” projects Thypin.
Read More: http://multifamilyexecutive.com/dispositions-and-transactions/apartment-sales-close-out-2011-on-the-rise.aspx
The market for US commercial property loans faces a test this year as a wave of debt from the credit boom matures while underlying property values remain sharply lower than when these deals were struck.
Industry watchers are expecting increased recapitalisations, refinancings and building sales in 2012 as commercial loan holders grapple with the debt.
... At the peak of the US CMBS market in 2007, approximately $233bn in loans were originated compared with $32bn in 2011, said Real Capital Analytics.
“While the CMBS market has thawed measurably over the past three years, it still has a long way to come back,” said Ben Carlos Thypin, director of market analysis at Real Capital Analytics. “If a large enough group of the borrowers facing maturities aren’t able to refinance, the liquidation of those assets may put enough downward pressure on pricing to temper the market’s recovery.”
“CMBS’ role in the market is symbiotic; it significantly widens the pool of available finance for the market but if there aren’t enough attractive assets to lend against, CMBS conduits have trouble generating the critical mass of loans required to run their operations profitably,” he added.
Ben Carlos Thypin
I am currently the co-founder of Quantierra, the world's first data driven real estate brokerage and investment manager. In my former life as Director of Market Analysis at Real Capital Analytics, I worked with press outlets large and small to provide them with great data and insightful commentary. Here are some of the results of this collaboration. For the rest, please check out the News Archive.