The Real Deal New York

C-III Capital completes acquisition of NAI

January 25, 2012 06:30PM
By David Jones

From left: Andrew Farkas, CEO of C-III Asset Management, and Jeffrey Finn, president and CEO of NAI Global

C-III Capital Partners, led by CEO Andrew Farkas, said it completed its acquisition of NAI Global, the world’s largest independent network of commercial brokers, they announced today.

The long-awaited deal furthers a strategy to grow the Irving, Texas-based C-III into a multi-platform real estate conglomerate that offers everything from commercial loan servicing to asset management and brokerage services. Farkas, the founder of Insignia Financial Group in the 1990s, has acquired range of brokerage and servicing businesses in a bid to acquire a wide range of distressed loans and real estate assets across the U.S.

“It’s a consistent strategy about having vertical integration around different real estate services for our portfolio,” Robert Lieber, executive managing director at C-III, told The Real Deal.

Princeton-based NAI Global originally agreed to be acquired by C-III in June 2011. NAI has more than 350 brokerages in 55 countries around the world, including a mix of corporate-owned and franchised locations.

C-III later announced that it was in negotiations with Los Angeles-based brokerage Grubb & Ellis, which was struggled mightily since the real estate crash and was delisted from the New York Stock Exchange.

Grubb & Ellis disclosed in a filing with federal regulators that BGC Partners, led by Howard Lutnick, was in talks to invest in the company. BGC has until Jan. 31 to complete the negotiations with Grubb & Ellis.

Lieber told The Real Deal that it remains a “senior secured creditor” with the brokerage and that its relationship has not changed since it previously disclosed the negotiations.

NAI will continue to operate under the same ownership and structure, as a fully owned subsidiary of C-III.

“We are thrilled to be joining forces with C-III and excited about the opportunity to deliver an even broader range of services to our members and add greater value to our collective corporate and investment clients,” Finn said.

The terms of the deal were not disclosed.

NAI officials said they would not comment beyond the official announcement.

 

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