BGC Moves To Bring Affiliates In-House To Build On National Expansion Following Newmark and Grubb Acquistions
BGC Partners, Inc., parent of Newmark Grubb Knight Frank (NGKF), beefed up its presence in Denver and Philadelphia, acquiring separate commercial real estate companies that have operated as Newmark Knight Frank affiliates for several years.
The company acquired Smith Mack, a prominent commercial real estate services company in the greater Philadelphia area that became a Newmark affiliate in 2009. It also bought Frederick Ross Co., the oldest full-service CRE firm in Denver and a Newmark partner since 2010. Financial terms of the deals were not disclosed.
NGKF CEO Barry M. Gosin noted that the pair of acquisitions further bolster Newmark Grubb's national expansion and confirms that its extended platform "offers clients the best real estate solutions in the industry."
Gosin further noted that both firms have benefited from the transformation in which Newmark became part of BGC in 2011 and Grubb & Ellis became part of the company following Grubb's bankruptcy and dissolution last year.
Smith Mack founding partners Sidney (Sid) Smith, Jeff Mack and Reid Blynn have been named executive managing directors of Newmark Grubb Knight Frank. The team will be joined by most of Smith Mack's existing brokerage and advisory professionals, who will occupy offices with NGKF professionals in downtown Philadelphia; Wayne, PA; Wilmington, DE; and Marlton, NJ.
In Denver, Jack Box, who has served as president and chief executive officer of Frederick Ross for 24 years, will assume the title of chairman for this NGKF region. Kevin McCabe, credited with growing the Denver office brokerage division by 45% since his arrival in 2011, has been appointed executive vice president and managing director for Colorado.
The firm declined to comment on the acquisitions beyond the issued statements, or if it plans to acquire other Newmark partner firms. NGKF has partnerships with major firms in several markets. For example, NGKF and West Coast real estate powerhouse Cornish & Carey Commercial merged their northern California operations in September 2010.
The latest acquisitions underscore Newmark's ambitious growth plans. The firm, which started out managing Manhattan buildings owned by its principals, continues to expand through strategic acquisitions. It has also served notice that it intends to compete for the lucrative global corporate real estate business. In November, Newmark Grubb Knight Frank Global Corporate Services was selected by Nokia Siemens Networks to be its global corporate real estate supplier. Under the agreement, NGKF will work with Nokia Siemens Networks' real estate team to negotiate transactions and provide facilities management services in more than 100 countries where Nokia Siemens Networks operates.
And earlier in 2012, the firm represented Morgan Stanley in a lease for 1.2 million square feet at Brookfield Office Properties' One New York Plaza in Lower Manhattan. The deal was the largest single-asset office lease in New York City signed since 2008.
More recently, Brookfield selected NGKF as the exclusive leasing agent for 245 Park Avenue, a prominent Park Avenue trophy office building in New York City.