After Establishing Referral Partnership in 2010, Owner of Newmark Grubb Knight Frank To Acquire Northern California Firm; C&CC President and CEO Chuck Seufferlein Named President of NGKF's Western Region
|Under the agreement, Cornish & Carey Commercial will become Newmark Cornish & Carey and C&CC President and CEO Chuck Seufferlein (above) will become president of NGKF’s Western Region. |
BGC Partners, Inc. (NASDAQ: BGCP
), the Manhattan-based brokerage firm that owns Newmark Grubb Knight Frank (NGKF), is buying Cornish & Carey Commercial, one of the last regional independent real estate firms and a major player in Northern California commercial real estate. The firm will operate as Newmark Cornish & Carey following the transaction, which is expected to close by mid-2014. Financial details were not disclosed.
Formed in 1935 in Palo Alto, CA, Cornish & Carey employs more than 275 brokers and generated $135 million in revenue in 2012. The two firms have operated under a business referral agreement since 2010. Cornish & Carey has offices in Emeryville, Hayward, Marin, Palo Alto, Pleasanton, Roseville, Sacramento, San Francisco, San Mateo, Santa Clara, Santa Rosa and Walnut Creek.
Cornish & Carey Commercial President and CEO Chuck Seufferlein has been named president of NGKF's Western Region. Scott Carey will remain chairman and general counsel.
"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," said Seufferlein in a statement announcing the agreement. He cited Cornish & Carey's successful partnership with NGKF, BGC's strong balance sheet, and BGC's and NGKF's relationships with corporations and financial institutions as compelling reasons for joining forces.
NGKF CEO Barry M. Gosin said the acquisition will enable the firm to provide its clients with more services. "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," said Gosin.
In an interview with the San Jose Mercury News
, Scott Carey said the acquisition by BGC is expected to help the firm expand beyond its current Northern California stronghold. Target markets for future expansion include Portland, Seattle, Los Angeles and San Diego.
Newmark Grubb Knight Frank is a wholly owned affiliate of BGC Partners, a global brokerage company primarily serving the wholesale financial and real estate markets. BGC entered the commercial real estate services industry with the acquisition of Newmark Knight Frank in October 2011, and further expanded its real estate platform by acquiring the assets of the former Grubb & Ellis Company in April 2012.