Brokerage firm BGC Partners is buying investment brokerage network Apartment Realty Advisors and its members for $110 million in cash.
BGC is the parent of Newmark Grubb Knight Frank, which is led by James Kuhn. According to a press release filed by BGC, the acquisitions of ARA’s assets and members will drive Newmark Grubb Knight Frank’s growth in the multi-housing capital markets space. The companies BGC is buying are expected to generate an annual revenue of more than $100 million, with pre-tax distributable earnings topping $20 million.
ARA has roughly 100 brokers and offices nationwide. The firm completed more than $3.3 billion in multi-family sales in the first half of 2014, a 42 percent year-over-year increase, according to the release. ARA is the second largest firm in multi-family transactions, according to a ranking by Real Estate Alert.
The transactions are expected to close by the end of the year.
“We expect ARA to strengthen NGKF’s position as one of the top commercial real estate advisory firms and further add to the value and importance of real estate to BGC’s overall business,” said Howard Lutnick, Chairman and CEO of BGC Partners, in the release. — Claire Moses