Jones Lang LaSalle
According to Eastdil chairman, Ben Lambert, the two companies were involved in debt and equity transactions totaling $60 billion in 2005. Roy March, who has headed Eastdil's West Coast office, will serve as CEO, while Mike Van Konsvnenburg of Secured Capital will be its president. 
The $621 million sale of the Manhattan House apartments was just a tiny piece of the $60 billion in deals done by Eastdil and Secured Capital in 2005.
The expanded company joins Eastdil's equity-heavy expertise and East Coast bias with Secured's acknowledged leadership on the West Coast, where it also has a dominant position in debt-related transactions. Providing the entity additional is Eastdil's parent, Wells Fargo, as well as Eastdil's eight-year-old ownership stake in Green Street Advisors, a leading buy-side analyst in the REIT industry.
One new area for Eastdil: the company will now participate in Secured's existing business in institutional fund raising. Secured is already out in the marketplace chasing dollars for Cargill and ProLogis. "We want to build that business," declares Lambert.
Competitors (who declined to comment) will no doubt be watching to see whether the merger creates internal friction, a possibility when any two service organizations built on the sometimes outsize egos of power brokers. Any resulting personnel fallout could result in juicy pickings for leaner operations.
THE NUMBERS
Eastdil and its rivals should have plenty to work on in the new year. Dan Fasulo, director of research for New York-based Real Capital Analytics, says that spending on real estate acquisitions jumped from $195.6 billion in 2004 to $278.8 billion last year, an increase of 42.4% in done deals. And that's on top of a 55.3% jump over the $119.4 billion spent in 2003. to $195.6 billion from 2003 to 2004, to a whopping 63% boost.
This year is off to a roaring start, says Fasulo: $35 billion in deals are already under contract, with the year less than three weeks old.
Cap rates have compressed nearly 16% over the same two-year period, from an average of 8.2% in 2003 to 6.9% last year.
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CAPITAL FLOWS
CAPITAL FLOWS
Against a backdrop of stunning totals for building sales in the U.S. in 2005, the merger of brokerage powerhouses Eastdil and Secured Capital, announced last November, closed Wednesday. Although no price for the acquisition by Eastdil of Secured has been announced, published reports estimated the deal value at anywhere between $100 million and $150 million.
According to Eastdil chairman, Ben Lambert, the two companies were involved in debt and equity transactions totaling $60 billion in 2005. Roy March, who has headed Eastdil's West Coast office, will serve as CEO, while Mike Van Konsvnenburg of Secured Capital will be its president.
The $621 million sale of the Manhattan House apartments was just a tiny piece of the $60 billion in deals done by Eastdil and Secured Capital in 2005.
Considering that real estate investors spent a total of $276 billion in property acquisitions last year, the merged company will have a healthy market share to kick things off. "We end up with significant capability," said Lambert, speaking to The Slatin Report from New Orleans, where, as part of a Hilton Hotels Corp. board meeting, he had just toured the devastated city. Still, he insists, "we will have to compete for everything. We're only as good as tomorrow, and the key is whether this will be good for our clients."
The expanded company joins Eastdil's equity-heavy expertise and East Coast bias with Secured's acknowledged leadership on the West Coast, where it also has a dominant position in debt-related transactions. Providing the entity additional is Eastdil's parent, Wells Fargo, as well as Eastdil's eight-year-old ownership stake in Green Street Advisors, a leading buy-side analyst in the REIT industry.
One new area for Eastdil: the company will now participate in Secured's existing business in institutional fund raising. Secured is already out in the marketplace chasing dollars for Cargill and ProLogis. "We want to build that business," declares Lambert.
Competitors (who declined to comment) will no doubt be watching to see whether the merger creates internal friction, a possibility when any two service organizations built on the sometimes outsize egos of power brokers. Any resulting personnel fallout could result in juicy pickings for leaner operations.
THE NUMBERS
Eastdil and its rivals should have plenty to work on in the new year. Dan Fasulo, director of research for New York-based Real Capital Analytics, says that spending on real estate acquisitions jumped from $195.6 billion in 2004 to $278.8 billion last year, an increase of 42.4% in done deals. And that's on top of a 55.3% jump over the $119.4 billion spent in 2003. to $195.6 billion from 2003 to 2004, to a whopping 63% boost.
This year is off to a roaring start, says Fasulo: $35 billion in deals are already under contract, with the year less than three weeks old.
Cap rates have compressed nearly 16% over the same two-year period, from an average of 8.2% in 2003 to 6.9% last year.
posted by Jones Lang LaSalle NJ News Blog at 3:36 PM
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