The Real Deal New York

London-based Savills set to buy Studley for $260M

Deal expected to close at the end of May
May 01, 2014 10:15AM

London-based global real estate firm Savills has agreed to acquire the Midtown-based Studley for $260 million, the firms said in a statement this morning.

The deal for the tenant-representative firm Studley, headed by CEO Mitchell Steir and President Michael Colacino, is expected to close by the end of May. The firms had been in talks back in December, as previously reported.

The combined firm will be known in the United States as Savills Studley, and Steir and Colacino will remain in their current positions, and will have seats on the Savills Group Executive Board, the statement said.

Studley currently has 25 offices in the United States, and the combined firm will have more than 500 locations globally. — Adam Pincus

  • BrokerageDoesNotPay

    Half in cash, half late in stock. Not a great price, but Studley’s margins are very low. Sure, the 139 partners pay themselves out all profits but the expense base is much too high. They have something like 145 support people? Will be interesting to see when Savills cracks down on compensation whether the brokers will stay. Probably not. With 139 partners if all were equal then everybody gets maybe a million now and a million later if the stock pans out. Of course Mitch and Michael have lions share probably but even then…not a great payday. it is a lot of work to build a brokerage and the reward is not that high. Their business model of tenant rep only is too limited; I predict that model is over now. Also predict three years of infighting so they wont be much of a force in the market..the Brits never are good in the US….look at Barclays

  • Steven Cohen needs a HQ. in New York; Studley will probably tenant rep them