The world's largest real estate brokerage by revenue is becoming even larger with the acquisition of a valuation firm specializing in U.S. senior housing and healthcare real estate, making good on a promise from the firm's top leaders earlier this year.
CBRE's executives told investors in April it had $5.5 billion earmarked for acquisitions as some companies seek out buyers in a slowing economy. CBRE's acquisition of Culver City, California-based Valuation & Information Group for an undisclosed sum is the real estate services firm's first announced company acquisition since sharing its merger and acquisition plans earlier this year.
Valuation & Information Group is known as an industry-leading valuation services group covering a wide variety of senior housing and healthcare facilities from independent living to skilled nursing facilities to medical office buildings and hospitals. In addition to working on these specialty properties, the firm also provides valuation services for the U.S. Department of Housing and Urban Development, as well as conventional multifamily financing.
“Over the last two decades, VIG has become the undeniable best source for senior housing HUD and skilled nursing facility valuation and advisory, capturing more than 60% of the market share," Micah Beck, head of strategic growth for CBRE's valuation and advisory services, told CoStar News, in an email. "Our clients can have confidence knowing that CBRE, with this unparalleled talent and resources, can create innovative and unique solutions for all of their commercial real estate needs in the senior housing and healthcare industry.”
Tom Edwards, CBRE's global president of valuation and advisory services, said the acquisition, combined with the firm's existing national platform will make CBRE "the clear leader in senior housing and healthcare appraisal."
Along with its California headquarters, the firm also has additional offices in suburban Philadelphia, Austin and Chicago. Its 23 employees will fully integrate into CBRE's senior housing and healthcare team led by Daniel Lincoln. Valuation & Information Group's leaders Marc Lussier and JP LoMonaco will continue to run the incoming team's operations as executive vice presidents. Dan Schneider will lead the execution of projects in the eastern United States as a vice president for CBRE.
The acquisition of Valuation & Information reflects CBRE's ongoing plan to enhance its leadership position in specialty areas of valuation and advisory services. In the last year, CBRE has acquired a property tax payment services firm, a specialist right-of-way appraisal firm in Los Angeles and Orange County and a commercial land surveying services provider.
CBRE has been preparing for a moderate recession this year. Adding these types of recession-proof services, such as valuation, could help diversify its business. Valuation & Information could also benefit from teaming up with the world's largest brokerage firm.
CBRE CEO Bob Sulentic told investors in April, "There are companies out there in our sector or directly adjacent to our sector that believe by becoming part of our business or having financial sponsorship from our business will help perform better than they can perform on their own."