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Chicago

Houston-based Transwestern acquiring Chicago brokerage

MBRE oversees leasing in multiple office properties across the city

MBRE's Peter Ricker with 550 West Washington (MBRE, Google Maps)
MBRE's Peter Ricker with 550 West Washington (MBRE, Google Maps)

Another brokerage and office management company has been absorbed by one of the biggest players in the industry.

Houston-based Transwestern is acquiring Chicago-based MBRE, which oversees leasing at multiple downtown offices, Crain’s reported. The deal follows the recent trend of big office leasing companies snatching up smaller firms to expand their footprints.

Transwestern is set to expand its Chicago portfolio substantially with the acquisition of MBRE, which oversees leasing in Michigan Plaza, 181 West Madison Street and 550 West Washington Boulevard. The properties will join those for which Transwestern already handles leasing, including 77 West Wacker Drive, 191 North Wacker Drive, The National at 125 South Clark Street and the NBC Tower.

Similar acquisitions have been steadily made by other major real estate players for years, consolidating the business into the hands of brokerages geared to serve commercial building owners with large, global portfolios such as Chicago-based JLL and Cushman & Wakefield and Dallas-based CBRE. Transwestern is also one of the biggest providers of property management and commercial leasing services across the nation.

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MBRE formed by the 1998 merger of New York real estate investors Howard and Edward Milstein with Miglin-Beitler Management, a Chicago-based commercial real estate firm started by well-known real estate investors J. Paul Beitler and Lee Miglin, whose development firm built 181 West Madison.

Developer John Murphy exited his role as MBRE president and vice chairman at the end of 2019. Shortly after, in October 2020, the firm’s managing principal, Peter Westmeyer, announced that the company was spinning off its health care division, which was renamed Remedy Medical Properties. That same month, the firm’s longest-serving executive, Kevin Purcell, vacated his post as president of leasing and management services after more than 20 years with the company to take a new role with Northbrook-based Hilco Global’s development branch.

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— Victoria Pruitt

Tags
Chicago Office MarketReal Estate MergersTranswestern