Real estate advisory firm Schonbraun McCann Group was acquired by the global consulting firm FTI Consulting for $125 million in cash and company stock. SMG will continue to operate under its own name, as a division of FTI.
SMG offers real estate consultation for REITs and management firms on investment purchases, mergers and acquisitions, debt workouts, deal structuring and lease analysis.
Previously a national company based in New York City, with additional offices in New Jersey, Florida and California, SMG will now become the real estate arm of FTI, which did not have a real estate division before, at its offices across the country and in Mexico, Brazil, Argentina, China, Australia, Singapore, Japan, England, Scotland and the United Arab Emirates.
Over the past few years, SMG’s biggest clients have expanded operations abroad, including Kimco Realty’s venture into Mexico, Gale Real Estate Services’ projects in Korea and Tishman Speyer and Vornado’s investments all over the world.
“It has been a natural extension for us to follow our clients, and they have taken us all over the world,” said Bruce Schonbraun, managing partner.
SMG will gain clients from FTI Consulting such as financial institutions that do not practice real estate investment, but have large portfolios that need to be managed.
In the past 18 months, SMG has represented firms in more than $100 billion worth of investment sales, portfolio trades and other transactions.