TORONTO — Commercial real estate services firm Avison Young is continuing its growth strategy with a new equity investment totaling 250 million Canadian dollars (approximately $188.6 million) from Canadian pension fund manager Caisse de dépôt et placement du Québec (CDPQ). Toronto-based Avison Young will use the new capital to grow its operating platform in North America. “CDPQ’s investment will provide additional momentum as we accelerate our innovative and technology-based capabilities and market presence to serve clients,” says Mark Rose, chair and CEO of Avison Young. In less than 10 years, Avison Young has grown from 300 real estate professionals in 11 offices in Canada to approximately 2,600 professionals in 84 offices in Canada, the United States, Mexico and Europe. The company’s largest U.S. office in terms of staff size is in Washington, D.C., followed in order by Chicago, New York and Atlanta. Avison Young will use the investment to continue its acquisition strategy of commercial real estate service firms, as well as recruit new talent, open new offices and cover transaction expenses. “Due to the significant size of the equity infusion we won’t be faced with having to make choices between regions for deployment of capital or be limited in …
GREENSBORO, N.C. — The Fresh Market Inc. announced this week that it will close 15 stores nationwide, including seven in the Southeast. The impacted stores were selected after an analysis of overall growth and long-term financial performance, according to the Greensboro-based grocer. “Over the last eight months, our company has been executing a turnaround plan and we’ve seen great progress,” said Larry Appel, CEO of The Fresh Market, in a statement. “However, for a variety of reasons unique to each retail location, that progress is not evenly distributed and, as a result, we have decided to close these long-term, underperforming stores.” In the Southeast, The Fresh Market will close locations in Atlanta and Snellville, Ga.; Louisville, Ky.; Charlotte, N.C.; Hendersonville, Tenn.; and Winchester and Charlottesville, Va. Other affected locations are located throughout Illinois, Indiana, New Hampshire and Wisconsin. The stores will close over the next two to four weeks.
CHICAGO — Colliers International has finalized its previously announced strategic investment in Harrison Street Real Estate Capital LLC for $450 million. An additional $100 million will be payable to Harrison Street in 2022 based on the achievement of certain performance targets. Colliers has acquired 75 percent of the Chicago-based real estate investment firm, which focuses on the education, healthcare and self-storage sectors. The senior management team of Harrison Street owns the balance of the equity. Christopher Merrill, Harrison Street’s co-founder and CEO, will lead operations and remain the largest individual shareholder. Colliers expects annual revenue from management fees to range between $100 million and $115 million. Harrison Street currently maintains approximately $14.6 billion in assets under management.
CHICAGO — Cushman & Wakefield has filed registration with the SEC for an initial public offering (IPO). The number of shares to be offered and the price range for the proposed offering have yet to be determined. Chicago-based Cushman & Wakefield is among the largest real estate services firms in the world with 48,000 employees in approximately 400 offices and 70 countries. The 101-year-old firm, which reported revenues of $6.9 billion last year, manages approximately 3.5 billion square feet of commercial real estate space on behalf of institutional, corporate and private clients. The company could seek to raise about $1 billion in the IPO and seek a valuation in excess of $5 billion, according to The Wall Street Journal. In its filing, Cushman & Wakefield states five strategies for growing revenue and profitability: hiring top talent; expanding margins; leveraging breadth of services; deploying capital around its infill M&A strategy; and utilizing technology. The decision is likely a move to better compete with CBRE and JLL, both of which are publicly traded entities. CBRE’s revenue for 2017 was $14.2 billion while JLL’s was $7.9 billion. Cushman & Wakefield ranked No. 3 on Lipsey’s 2017 Top 25 Commercial Real Estate Brand Survey. Cushman & …
WASHINGTON, D.C. — Retail developer Madison Marquette and Houston-based developer PMRG have closed on their previously announced merger. News of merger discussions was originally announced at the end of May. “Our growth strategy is to be responsive to client demand for expanded investment and property services and for broader expertise in more markets. Merging operations with PMRG meets that demand,” says Amer Hammour, chairman of Madison Marquette. “Our combined capabilities also make us uniquely qualified to meet shifting market demand for mixed-use development, management and investment expertise.” Leadership of both firms will remain in place. While the operating platforms are in transition and until the combined company reveals its new name, the two companies will retain their individual brands. The combined company will be headquartered in Washington, D.C., with a major presence in Houston.
Pebblebrook Hotel Trust Revises Offer to Acquire LaSalle Hotel Properties, New Deal Valued at $4.17B
BETHESDA, MD. — For the fourth time since March, Pebblebrook Hotel Trust (NYSE: PEB) has revised its merger proposal with LaSalle Hotel Properties (NYSE: LHO). Both hospitality REITs are based in Bethesda. Pebblebrook’s offer is contingent on LaSalle breaking off its current merger agreement with Blackstone Group. Pebblebrook submitted its offer to LaSalle’s board of trustees a few weeks after Blackstone and LaSalle came to terms on their merger. Blackstone’s deal was for $4.8 billion in an all-cash transaction. While a lower total dollar amount, Pebblebrook’s $4.17 billion offer excludes a debt portion, and The Wall Street Journal reports that Blackstone’s deal was valued at $3.7 billion when excluding debt. Pebblebrook’s board of trustees has unanimously approved the new deal. “The board of Pebblebrook remains convinced that a strategic combination with LaSalle represents a value-maximizing opportunity for the shareholders of both LaSalle and Pebblebrook,” said Jon Bortz, chairman, president and CEO of Pebblebrook. The hospitality REIT’s new offer represents a 13 percent premium over the Blackstone agreement. For each LaSalle common share held, each LaSalle shareholder may elect to receive $37.80 in cash (compared to Blackstone’s $33.50 per share offer) or a fixed exchange ratio of 0.92 Pebblebrook share. The …
HOUSTON — Friedman Real Estate, a full-service real estate firm that manages more than 140 commercial properties across the country, has opened a new office at 333 Cypress Run in Houston. The location will be the company’s seventh regional office and first in Texas. Mark Zeidman, vice president of brokerage services, will oversee the new office.
WASHINGTON, D.C. — Gunnar Branson will join the Association of Foreign Investors in Real Estate (AFIRE) as CEO following the September retirement of the organization’s long-time head, James Fetgatter. Branson joins AFIRE following seven years as CEO of the National Association of Real Estate Managers (NAREIM). Previously, Branson held leadership positions at GE Capital Real Estate and Heller Financial, and has consulted with companies including JLL, Wells Fargo, Wrightwood Capital, CIBC and Fidelity Investments. “I am excited to begin work with AFIRE and to continue the high-level relationships fostered by Jim Fetgatter for so many years,” said Branson. “AFIRE is an essential forum for navigating the unique challenges of global institutional real estate investing, and I look forward to participating in that discussion.” Founded in 1988, Washington, D.C.-based AFIRE provides a platform for investors to communicate through global meetings in key cities around the world, including in the United States and Europe. Two former U.S. presidents, four former secretaries of state, four former secretaries of defense and former prime ministers from the UK, Ireland, Spain and Australia have addressed AFIRE conferences.
BOCA RATON, FLA. — Kayne Anderson Real Estate (KA Real Estate), a private equity investor in alternative sectors, has closed opportunistic fund Kayne Anderson Real Estate Partners V (KAREP V) at its hard cap of $1.8 billion. The fund is targeting opportunities across seniors housing, medical office and student housing. To date, KAREP V has deployed more than 20 percent of its capital. The fund is KA Real Estate’s largest to date and includes capital commitments from institutions, high-net-worth individuals and family offices. Boca Raton-based KA Real Estate, the private equity arm of Kayne Anderson Capital Advisors LP, has a current portfolio of more than 12 million square feet of medical office space, approximately 10,500 seniors housing units and 4,500 student housing beds.
NEW YORK CITY — Newmark Group Inc. (NASDAQ: NMRK) has agreed to acquire RKF Retail Holdings LLC, a real estate firm specializing in retail leasing, for an undisclosed price. The acquisition is expected to close later this year, and will grow New York-based Newmark’s already robust retail business, which includes leasing, investment sales and retail occupier services alongside Excess Space Retail Services Inc., a Newmark company specializing in real estate disposition and lease restructuring. Robert K. Futterman will serve as chairman of Newmark RKF, Newmark’s retail leasing division, and will be responsible for leading the growth of the company’s retail real estate business throughout North America.