A deal was struck for two buildings within the Huntington Beach Medical Campus in California, with the help of NAI Capital. Executive Vice President of NAI Capital, Tom Nguyen, acted on behalf of KO’s HB Medical Building Inc. in the sale of their properties to Blue Sky HB, LLC, who bought the medical buildings for a price tag of $7.8M.
The sale involves two medical buildings, with a combined square footage of over 48,000, and one parking garage covering 1.8 acres of land. Although the two buildings, which sit at the entrance of the Huntington Beach Medical Campus, are in poor condition, the buyer has plans to renovate their purchase. Other medical facilities located within the campus include Huntington Beach Diagnostic Imaging & Breast Center, Hunting Beach Hospital and Huntington Professional Tower & Pharmacy. Occupants within the campus also include some pediatric practices and Quest Diagnostics.
Tom Nguyen considered the location of the Huntington Beach Medical Campus, combined with the sufficient parking situation, as an excellent opportunity. He believes the location is superb given that Beach Boulevard, otherwise known as Highway 39, is adjacent to the facility. A combination of factors such as a high average household income, a large population within a 5 mile radius and a large amount of traffic in the area all add to the value of the location.
Southern California commercial real estate leader, NAI Capital, is an NAI Global network member. NAI Global has over 375 offices worldwide and over 6,700 local market leaders. NAI Global’s strength lies in the sharing of resources and tools between their members, so each member company can excel in their local markets. NAI Global is owned by C-III Capital Partners, LLC and was acquired in 2012 under management of CEO Andrew Farkas.
NAI Global announced its coveted Member of the Year award at its recent NAI Global Convention in Las Vegas in February. The top international acclaim went to NAI Harcourts in New Zealand. The member company was established in 2009 and has grown exponentially since then, and now is in charge of 61 locations in New Zealand and an additional 14 in Australia. The CEO of NAI Harcourts, Hayden Duncan, commented that the award reflects the growth they have seen in the past year.
Mr. Duncan’s reasoning for their success reflects the NAI Global attitude that locally owned member companies have a knowledge and expertise of their surrounding area that larger chain companies don’t. Couple that with an international network of support and you have a recipe for success. Hayley Duncan is overwhelmed at receiving this accolade, which goes to the member company that most accurately meets characteristics such as to positively represent the NAI brand name, to work closely with other member companies within the network, to drive business and to provide leadership within NAI Global.
NAI Harcourts was previously known as Harcourts International which was established in 1888 in New Zealand. Harcourts International joined with NAI Global to become NAI Harcourts in 2009.
NAI Global is an international network of wholly-owned independent member companies and is the fourth largest commercial real estate services firm internationally. NAI Global was acquired by C-III Capital Partners, LLC in 2012. Andrew Farkas is the CEO and Chairman of C-III and is also CEO of Anubis Advisors, a real estate advisory business that also deals with asset management and distressed debt acquisitions.
Latter & Blum is a commercial real estate firm based out of Louisiana who, due to a recent merger, has added a new office to its ever expanding operations. NAI Lake Charles will become NAI/Latter & Blum and will serve as their southwest Louisiana office, and add nine new agents to the firm.
This acquisition marks the fifth expansion in two years, making Latter & Blum the only private commercial real estate firm covering the central, southwest and Gulf Coast of Louisiana. The Chairman and CEO of Latter & Blum, Bob Merrick believes the addition of a commercial office in Lake Charles will open up more referral opportunities for their agents in New Orleans on both the commercial and residential fronts. NAI Lake Charles follows the firm’s acquisition of ERA Moffett Realty Inc. in August, a residential real-estate firm. This will also allow them to maintain their high level of service, while meeting the demands of the on-going industrial expansion in the state. Latter & Blum has a network that spans from Texas to Mississippi. This collection of companies includes CJ Brown Realtors and Noles-Frye Realty in Baton Rouge and Alexandria respectively.
The Latter & Blum offices in New Orleans, Baton Rouge, Lafayette, Houma and Alexandria, as well as the newly added NAI Lake Charles office, are all existing members of the NAI Global network of independently owned commercial real estate firms. NAI Global has over 350 offices worldwide and is managed network of firms, owned by C-III Capital Partners, since an acquisition in 2011 led by C-III’s CEO Andrew Farkas.
NAI Global, a commercial real-estate services network linked to Andrew Farkas, has agreed to a deal with EVO Real Estate Group based in New York. This network has 165 firms connected across 204 cities worldwide. Through this deal, EVO will become the New York office of the network.
C-III Capital Partners, under the direction of CEO Andrew Farkas, purchased NAI in 2012. NAI provides brokerage among other services to external clients as well as all of Farkas’ ever expanding collection of real-estate businesses. There has been one noticeable hole in the network in New York, which many consider to be the most important real-estate market in the world.
EVO will be instrumental in bridging this gap as they are native to the city and currently manage around 3.5 million square feet of commercial property. The president of NAI Global, Jay Olshonsky, remarked that they were thrilled to now have a strong presence in New York.
Mr. Farkas is well known for his acquisition of Edward S. Gordon Co. in 1996, which he sold in 2003 to CB Richard Ellis for $415 million. This is just one of many real-estate and brokerage empires that Farkas has built over the years.
Current trends in the brokerage industry have shown larger firms moving away from the network structure preferred by NAI, but instead are moving towards ownership of all of their individual member offices. When C-III initially acquired the NAI network, they owned the New York member office, but in a strategic move they decided to replace the newly acquired office within the network, along with a few other offices owned by NAI, with wholly owned companies independent of the network. The network is estimated to reach a combined revenue total of $1 billion in 2014.
Winoker Realty Co. was a well-known New York based real-estate firm who made headlines in 2012 when their president, David Winoker, died tragically in a sky-diving accident. In 2013 the firm was sold to two former employees, father and daughter duo Ira Fishman and Dana Moskowitz, by the deceased’s widow. The firm quickly rebranded as EVO Real Estate Group, with the name being chosen to reflect the desired evolution the firm would undertake.
This new deal between EVO and NAI Global will enable EVO to expand and develop due to the shared information between member firms, according to Mr. Fishman. An example of this might be if EVO had a client in New York, who was also looking to lease out another building in a different state, EVO could link up with the network member office in that state and the fees and commissions would be divided up between the two member firms. Mr. Fishman is said to be excited about the concept as he has never been part of a network like this before.
Mr. Farkas’ vast collection of businesses uses the NAI Global network for brokerage services among others. The president of NAI Global insists this is because the network is continually proving that they offer the best service, not because of the ties with Mr. Farkas. The reason they feel they stand out is because each of the individual firms in the network are experts in their respective regions. This means that firms in the network can refer clients to other member firms with the confidence that they will provide the same standard of care and expertise as each other. According to Mr. Olshonsky, firms within a network that are independently owned have more of an incentive to make sure that their clients, local or referred, are getting the best service.
U.S. Residential Group LLC (USRG), a multifamily management company for affordable apartments, has been handpicked by a Cleveland-based private real estate investment group to manage a portfolio of 10 conventional apartment communities throughout Illinois, Ohio and Kentucky.
U.S. Residential Group LLC is a subsidiary company of C-III Capital Partners LLC, led by Chairman Andrew Farkas. The group is comprised of real estate industry specialists that provide professional services, such as marketing, leasing and maintenance to owners of multi-family properties across the United States.
The Ohio real estate investor plans to outsource their management to USRG in order to focus on expanding their portfolio of multifamily properties, while utilizing USRG’s growing national platform. USRG President Al Fenstermacher is confident about the new alliance and the benefits this client will receive from outsourcing to USRG.
“This assignment complements our goal of broadening our operating area, and forming new relationships with quality developers and investors,” said Fenstermacher. “Our clients benefit by outsourcing the day-to-day property management with the quality training and support provided by USRG while they focus on growing their apartment portfolios.”
Island Capital Group is a leading real estate merchant bank, which specializes in real estate securities, real estate operating businesses and real estate investing. Island Capital Group is headquartered in New York City and was founded in May 2003 by Andrew Farkas. Farkas now serves as a Managing Member, Chairman, and Chief Executive Officer of Island Capital Group.
Island Capital Group controls different groups of real estate services companies. A few of these companies includes C-III Capital Partners, Anubis Advisors and Island Global Yachting. C-III Capital Partners is Island Capital Group’s largest subsidiary. C-III Asset Management LLC is a subsidiary of C-III Capital Partners. Applied Technology & Management, Inc. is a subsidiary of Island Global Yachting.
C-Bridge Capital was created in 2013 by Island Capital Group in order to expand ICG’s real estate business into the Asia Pacific region. ICG Realty LLC is a subsidiary of Island Capital Group, which provides real estate brokerage services.
Island Capital Group deals with a variety of different real estate related investments that offer the opportunity for risk-adjusted returns. This includes investments that are in equity and debt securities, real estate operating companies and real property.
Prior to founding Island Capital in 2003, Farkas was Chairman and CEO of Insignia Financial Group. Insignia Financial Group is a global real estate services company, which Farkas established in 1990. In July 2003, Insignia merged with CB Richard Ellis to create CBRE. The two companies together created the largest commercial property company in the world at the time.