Howard Lutnick, chairman and CEO of BGC Partners, is suing Southampton’s town planning board after twice being denied permission to construct a barn on his land. [more]
Posts Tagged ‘howard lutnick’
BGC Partners plans to roll out its real estate derivative platform next year with the backing of three large banks, the firm’s CEO Howard Lutnick said at a real estate panel this morning in Midtown.
BGC owns the Midtown-based real estate brokerage Newmark Grubb Knight Frank, and Lutnick first suggested in 2011 that the company would offer a hedge against office leases in the form of a derivative.
Real estate derivates provide tenants or landlords a type of insurance against rising or falling rents, but have proven difficult to implement. Many real estate brokers are skeptical about the idea, but other industry insiders believe it will eventually take hold. [more]
Newmark Grubb Knight Frank raked in $141.1 million in revenue during the third quarter. The third quarter earnings mark a slight decrease from the $144.1 million posted during the second quarter, according to a report in Crain’s. The results come from a tally recorded by its parent company BGC Partners. Newmark’s earnings raised BGC’s income during a time at which BGC’s income from other financial services had fallen.
BGC’s revenues were $107 million in October – a decline from $112 million in October of 2011. But including real estate revenues, the numbers during the third quarter ticked in at $440 million, up from roughly $380 million year-over-year. [more]
BGC Partners has filed suit alleging that Avison Young, a Toronto-based commercial real estate brokerage, has “illegally looted” business from its recently acquired Grubb & Ellis subsidiary. Avison Young, led by former Grubb & Ellis president Mark Rose, allegedly poached 16 brokers in New York, Chicago, Atlanta and Pittsburgh, according to the complaint, after Grubb & Ellis filed for bankruptcy in February, the suit claims.
Filed Aug. 1 in New York State Supreme Court, the suit alleges that Avison Young poached the South Carolina and Nevada affiliate brokerages from Grubb & Ellis after the BGC acquisition was completed in April. Avison Young has rewarded these brokers, “with full knowledge and recklessness to the consequences-for concealing or stealing business opportunities that belonged to Grubb & Ellis,” the suit states. [more]
BGC Partners CEO Howard LutnickBGC Partners CEO Howard Lutnick appeared on Bloomberg Television yesterday and shared his vision for the company’s commercial real estate business on the heels of recent acquisitions of Newmark Knight Frank and Grubb & Ellis (see video after the jump).
Lutnick said his financial brokerage can thrive in the commercial property market because the biggest users of offices are the very financial services firms with which BGC already has an established relationship. “We figured we could buy companies, hire great brokers and use those relationships we have to grow our marketshare.” … [more]
In the midst of several Cushman & Wakefield defections to commercial brokerages setting up shop here in New York, the market is beginning to look more competitive, Crain’s reported. The trend is a product of firms pursuing deals in New York City, where the real estate market remains far more active than it is in much of the rest of the country. [more]
From Apollo Global Management head Leon Black to Boston Properties boss Mort Zuckerman, the New York City real estate industry is a critical component to the East End scene. In fact, no fewer than 14 of the 100 most powerful people to descend upon the Hamptons this summer, as compiled by Hamptons magazine, are members of the industry. [more]
The vast majority of the real estate professionals and nearly all the transactional brokers that were working in the Manhattan office of commercial real estate firm Grubb & Ellis in the months before BGC Partners merged it into Newmark Grubb Knight Frank have not gone to Newmark, an analysis by The Real Deal shows (see chart). [more]
A Manhattan federal bankruptcy judge this morning issued a ruling approving BGC Partners’ acquisition of troubled California-based real estate brokerage Grubb & Ellis, free and clear of any liens.
The ruling is a victory for BGC, headed by CEO Howard Lutnick, which had come under criticism from Grubb brokers who objected to several details of the bankruptcy proposal, including a plan to pay many commissions through loans. [more]
From the March issue: Howard Lutnick’s announcement last month that his firm BGC Partners would buy distressed brokerage Grubb & Ellis through a Chapter 11 bankruptcy moves the conversation from why he’s getting into the commercial real estate game to how big a company he wants to build.
The purchase announcement came four months after the financial brokerage bought real estate services firm Newmark Knight Frank, and just weeks after Lutnick boasted on Bloomberg Television that he hoped to someday capture “25 percent of the [commercial real estate] market share.” [more]
A federal bankruptcy court judge in Manhattan responded yesterday to a group of creditors frustrated over the speed of the potential BGC Partners acquisition of Grubb & Ellis, and postponed a hearing scheduled for today until next Monday, court records show.
The creditors complain that Howard Lutnick’s Midtown-based brokerage BGC Partners is forcing through a sale of nearly all of Grubb & Ellis’ assets at an accelerated pace so that BGC will be the sole bidder. [more]
Howard Lutnick’s BGC Partners, which bought Newmark & Company last year for $63 million in cash plus additional stock, is in talks to invest in the struggling commercial brokerage firm Grubb & Ellis.
In a filing today with the U.S. Securities and Exchange Commission, Grubb & Ellis said that yesterday the firm entered into an exclusivity agreement which gives BGC until Jan. 31 to pursue “debt or equity financing and/or a strategic transaction with [Grubb & Ellis].” [more]
From left: Howard Lutnick, CEO of BGC, Barry Gosin, CEO of
Newmark and Jeff Gural, principal at Newmark Knight Frank
Howard Lutnick’s BGC Partners is paying $63 million in cash and $2.3 million in stock for Newmark & Company Real Estate, BGC said in a filing with the Securities and Exchange Commission last week.
BGC could pay an additional 4.83 million shares, which today have a value of $33.38 million, to Newmark shareholders, if certain incentive goals are reached, the company said.
BGC closed Friday on the acquisition of Newmark including the company’s majority interests in 13 affiliated companies around the United States. … [more]
BGC Partners has completed its acquisition of Newmark Knight Frank, the finance brokerage announced in a statement today.
As The Real Deal previously reported, the purchase of the Midtown-based commercial services firm involves about 425 brokers, and includes Newmark’s New York business and the company’s majority interest in more than 25 offices around the country as well as other affiliates.
Lower Manhattan-based BGC intends to drive Newmark’s growth by attracting experienced brokers, investing in proprietary technology, and capitalizing on Newmark’s extensive domestic relationships and international reach, according to the statement. — Miranda Neubauer … [more]
As Cantor Fitzgerald CEO Howard Lutnick prepares to finalize the purchase of brokerage Newmark Knight Frank, he is also seeking out ways in which he can use his knowledge of bond trading to gain advantage in the real estate game. According to the Wall Street Journal, Lutnick is considering the possibilities for developing a market in property derivatives pegged to rents as a means for landlords and tenants to hedge against surprise market volatility.
“You can hedge orange juice and you can hedge corn,” Lutnick said, “but real estate you can’t. I think property derivatives will become a common part of tenants’ and landords’ transactions in commercial real estate.” … [more]
Financial firm BGC Partners will grow the average revenue per Newmark broker as
well as develop a detailed financial product tied to commercial real estate following the
purchase of the property brokerage later this year, Howard Lutnick, BGC company
chairman and CEO said this morning on a first quarter conference call.
The average revenue per BGC broker for the first quarter of 2011 is about $210,000, higher than that earned by
the average Newmark commercial real estate broker, although the amount was not
identified. (Note: clarification). “We believe the Newmark revenue per broker is higher than its public peers,” Lutnick
said. “However, commercial real estate brokers in general have a lower production per
broker than the BGC average. We expect Newmark’s profit margins to grow to become as
high as — if not higher than — BGC’s.” … [more]