Morgan Spins Off Kearny Unit

LOS ANGELES-Investment giant Morgan Stanley of New York has spun off its locally based Kearny Real Estate Co., paving the way for highly regarded Kearny to begin offering its services to outside clients sometime next year.

The newly independent Kearny will be run by a management team lead by Jeff Dritley, who has spent the last few years directing the West Coast operations of the Morgan Stanley Real Estate Fund. Dritley and his two partners, David Simon and Amy Wissmann, control 50% of the “new” Kearny.

Morgan Stanley still has a $50 million equity stake in Kearny, and for now is the company’s sole client. But plans call for Kearny to begin offering its services to other firms in the first half of next year.