Andrew Farkas Updates

C-III Capital Partner’s Acquisition of NAI Global is Part of a Broader Growth Strategy

C-III Capital Partners, in which Andrew Farkas is CEO, recently completed its acquisition of NAI Global.  The deal was first announced in June 2011 and in the meantime, C-III was acquiring several other companies.  C-III Capital Partners is a real estate investment firm that is engaged in a broad range of activities, including loan origination, primary and special loan servicing, fund management and principal investment.  NAI Global is the network of independent commercial real estate firms and one of the largest commercial real estate service providers.

Robert Lieber, Executive Managing Director at C-III, discussed the acquisition and how it contributes to the broader growth strategy with CoStar News.  Robert explained that C-III Capital Partner’s strategy is to build a global, diverse real estate services firm, similar to what Andrew Farkas did with Insignia Financial Group.

When asked about Andrew Farkas’ strategy with his real estate investment firms, Robert Lieber responded, “The magic of Andrew Farkas is his visionary perspective… Andrew had a unique perspective and saw that the ability to try and aggregate and control this platform, which gave unique advantages to the limited partners in terms of their resolution alternatives, and opportunities for the general partners and the entity that was acquiring them -- a win-win situation.”

Commercial Property Market Gives Reason for Optimism

Global economic troubles can’t keep the commercial property market — or real estate mogul Andrew Farkas — down. According to recent reports, despite a cooling down of the world economy, commercial real estate is heating up. During the second quarter of this year, the market really saw a positive trend upward in occupier and investment demand as well as in development.

The region that saw the most growth was Asia, with the exception of Japan. China’s markets have remained buoyant despite the current slow patch, or period of economic slowdown amid a larger trend of economic growth. Japan, after suffering from an earthquake and subsequent nuclear disaster, didn’t fare so well.

New development starts have risen in some unexpected locales — Brazil, Malaysia, Russia and Poland. Although many countries have seen a positive outcome, the United States is still struggling. The US had a tentative recover, but that upward progress seems be faltering as the year continues. The rate of growth for commercial real estate, though, remains positive.

The United States economy is at greater risk, however, of defaulting on its loans, as leaders in Washington have yet to hammer out a deal that reduces the nation’s debt. With the Aug. 2 deadline looming nearer, Democratic and Republic leaders must find a way to compromise, or risk tanking the dollar and possibly the world economy.

Centerline Capital Group to Fund 12 Apartment Buildings in Los Angeles

Centerline Capital Group, which provides real estate financial and asset management services and specializes in affordable and conventional multifamily housing, recently funded a portfolio of 12 garden style apartment buildings in the San Fernando Valley in Los Angeles. Centerline provided the funding through its subsidiary, Centerline Mortgage Capital. The company will finance a total of $26.9 million, of which the proceeds will be used to place 10-year fixed rate loans — that will range in size from $1.3 million to $3.675 million — on each property.

The agreement was headed up by Centerline’s Small Loan Group, which is headquartered in Irvine, California. This group specializes in supplying Federal National Mortgage Association small loan financing on stabilized multi-family and mobile home communities around the country. The Small Loan Group focuses on deals between one and five million dollars.

Centerline recently made a move to expand its banking team in the Midwest, bringing Adam Klingher and Joseph Markech on board to focus on Centerline’s full range of mortgage products.

Centerline Capital Group is a subsidiary of Centerline Holding Company, of which Island Capital Group is the largest shareholder. Andrew Farkas founded Island Capital Group, an international real estate merchant bank, in 2003. Across 136 funds, Centerline has raised more than $10 billion in equity, and invested in over 1,300 assets in almost all 50 states.

Total Global Commercial Real Estate Sales Could Reach $440 Billion this Year

Hopeful news for real estate magnates like Andrew Farkas — estimates put total global commercial real estate sales at $440 billion for this year after the second quarter finished up with a $101 billion worldwide total. Sales are up 47 percent compared to numbers from a year earlier, and direct investment was up 46 percent from the first quarter.

            The increase is chiefly do to a rise in sales in the Americas — the United States, Canada and South and Central America — which raked in $49 billion in direct investment in commercial real estate. Though this region was one of the slowest to begin its recovery from the global economic crisis, the strengthening of lending markets allowed the crucial debt financing to make deals.

            Finishing with a slightly higher total compared to last year, Europe, the Middle East and Africa rounded out at a $34 billion investment total. Though investment in the Middle East remained mostly unchanged, Japan saw a huge decline — 30 percent, to be exact — because of the earthquake that devastated the region. Europe also was hurting during the second quarter due to the stagnant economic situation in Greece and other euro zone countries.

            But the swift increase in global commercial real estate totals compared with last year provides positive news for those in the real estate industry like Andrew Farkas, who is the CEO and Chairman of Island Capital Group, LLC.

Andrew Farkas' C-III Capital Partners Inks Deal with NAI Global

Andrew Farkas has been busy — his company, C-III Capital Partners LLC (C-III) just finalized an acquisition of NAI Global, the largest network of independent commercial real estate firms globally.

            “Today’s agreement represents a tremendous opportunity for NAI and our members,” said Gerald C. Finn, Chairman of NAI Global. “By teaming up with Andrew Farkas, one of the world’s leading real estate businessmen, we expect NAI will be able to significantly grow its service offerings and present new opportunities to our members.”

            Farkas is also optimistic about the acquisition, explaining that this will help C-III create a more diverse real estate services company. NAI Global offers a wide array of services, including corporate, financial, technological services. The company has 5,000 professionals and 350 offices in the US and is represented in 55 different countries around the world.

            “C-III is led by the same team that built Insignia [Financial Group],” Farkas explained, “and with C-III’s significantly larger asset base, I believe C-III can substantially exceed Insignia’s success.”

            C-III is based in Irving, Texas, but also has offices across the south, both in Greenville, S.C. and Nashville, Tenn. as well as up north in New York City. C-III’s portfolio manages $150 billion in assets.