NEW YORK CITY-Newmark Grubb Knight Frank, part of BGC Partners, has announced BGC's agreement to acquire Cornish & Carey Commercial. Based in Northern California, Cornish brought in approximately $135 million in revenues in 2012 and boasts over 275 brokers. Financial details of the transaction were not disclosed. The transaction is expected to be completed by the middle of 2014.BGC expects the transaction will be immediately accretive upon closing.
Cornish & Carey is no stranger to NGKF: the two firms struck up a partnership in 2010; and in fact, the full name of the firm's offices are Cornish & Carey Commercial Newmark Knight Frank. The move “significantly bolstered [Cornish & Carey's] position in the market,” according to the announcement. However, the firm already had been the “dominant force in Northern California and Silicon Valley real estate since 1935.”
As part of the move, Cornish & Carey president and CEO Chuck Seufferlein has been named president of NGKF's western region and the firm will be rebranded as Newmark Cornish & Carey. Scott Carey, carrying on the firm's family name, remains chairman and general counsel.
"Value creation for our clients is paramount and absolutely a driving factor in today's announcement," Seufferlein tells GlobeSt.com exclusively in an UPDATE to the initial report on the merger. I am looking forward to my expanded role as president of Newmark Grubb Knight Frank's western region."
Says NGKF CEO Barry Gosin, "Our partnership with Cornish & Carey has been tremendously successful. We now have an even greater ability to provide clients in the important Northern California marketplace the complete array of NGKF's services, including site selection, leasing advisory, facilities management, property management, project management, investment sales, global corporate services, and valuation among others. Cornish & Carey's commitment to serving clients, and its culture and performance, align perfectly with NGKF's client-centric service and growth model."
Adds Seufferlein, "Cornish & Carey is a trusted name among decision makers in technology, life sciences, finance and other sectors in Northern California and Silicon Valley. As Newmark Cornish & Carey, our clients will benefit enormously from the exceptional breadth of services that NGKF offers globally."
He adds, "Cornish & Carey originally partnered with NGKF because we recognized the value in joining forces with a firm that has built both a dominant New York presence and extensive international reach. Our successful partnership with NGKF, BGC's strong balance sheet, and BGC's and NGKF's outstanding relationships with top-tier corporations and financial institutions are compelling reasons to join together.”
The move adds to NGKF's already solid California representation, Gosin notes. "Coupled with NGKF's strong Southern California presence, this union solidifies our ability to offer an unequaled scope of services throughout the state and underscores our commitment to the commercial real estate market coast to coast."
Newmark Cornish & Carey offices are located in Emeryville, Hayward, Marin, Palo Alto, Pleasanton, Roseville, Sacramento, San Francisco, San Mateo, Santa Clara, Santa Rosa and Walnut Creek. Its full range of services includes tenant and landlord representation, investment sales, finance, global corporate services, and property and facilities management. In addition,
through BGC's relationships with Cantor Fitzgerald and Cantor Commercial Real Estate, NGKF's provides a global services business and strong capital markets capabilities.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
