Cushman & Wakefield has purchased the majority ownership position in the real estate investment company Sonnenblick-Goldman. The price was not disclosed.
Under the agreement, Cushman & Wakefield will become the majority owner in the company, while Sonnenblick principals will stay aboard. Sonnenblick-Goldman was involved in $7.5 billion of transactions last year, including arranging the $390 million financing for 485 Lexington Avenue.
This is Cushman & Wakefield's biggest move since the IFIL group purchased the company last year for $563 million. Last December, IFIL chief Carlo Sant'Albano said that the Italians would "bring something to the table in assisting the team at Cushman & Wakefield in growing their business." This is the Italians first step in proving that.
Full release below.
CUSHMAN & WAKEFIELD
DEPT. OF CORPORATE COMMUNICATIONS
NEWS RELEASE
MAY 31, 2007
For Immediate Release
CUSHMAN & WAKEFIELD TO ACQUIRE MAJORITY STAKE IN SONNENBLICK GOLDMAN
Leading commercial real estate firms to offer premier real estate financial services globally
NEW YORK, May 31, 2007 - Cushman & Wakefield, the world's largest privately held commercial real estate services firm, today announced it has reached a preliminary agreement to acquire a majority ownership position in real estate investment banking specialist Sonnenblick-Goldman, LLC.
Under terms of the agreement, Cushman & Wakefield will acquire a majority ownership position in privately held Sonnenblick Goldman, while principals of Sonnenblick Goldman will retain a significant position.
Additional terms of the deal were not released.
The partnership is expected to create a global leader in real estate financial services, by providing highly specialized mortgage banking, equity raising, brokerage and associated advisory services. Clients of both firms will benefit from enhanced capabilities and broader geographic access to expertise.
Sonnenblick Goldman is a premier real estate investment banking and financial services firm, specializing in providing integrated capital solutions for all asset classes. The firm is also a recognized industry leader in the financing and sale of hospitality and resort properties.
The company, which was founded in New York in 1893, has operations in North America, Asia and Australia.
"Sonnenblick Goldman is one of the most sophisticated and venerable real estate investment banking specialists in the world," said Bruce Mosler, President and Chief Executive Officer of Cushman & Wakefield. "We're committed to building our global debt and equity finance capabilities with the active leadership and expertise of Sonnenblick Goldman and its senior management."
Chris Lowery, Cushman & Wakefield's Chief Executive Officer of Capital Markets, said, "the integration of Sonnenblick Goldman with Cushman & Wakefield's robust investment sales business will enhance the ability of both firms to offer comprehensive capital solutions on a global basis."
"Cushman & Wakefield is the premier real estate services firm and its access to global capital will enhance our ability to serve clients around the world," said Steven Kohn, President and Principal of Sonnenblick Goldman. "Both firms share a vision for exceptional client service, backed by premier talent. This enables a mutual trust and strong cultural fit between professionals of both firms, and we expect a smooth transition to a highly active and productive relationship."
Cushman & Wakefield is one of the world's leading providers of real estate Capital Markets expertise. In 2006, the firm completed more than $50 billion in property sales and financings globally, and appraised properties valued at more than $500 billion. It manages more than $7 billion in real estate investments in Europe and Asia, through private accounts and investment funds, and operates more than 200 offices in 55 countries.
Sonnenblick Goldman is typically involved in some of the world's most prominent real estate transactions, completing capital transactions totaling approximately $7.5 billion in 2006. Last year, it arranged a $390 million financing for 485 Lexington Ave. in New York, N.Y., a $300 million refinancing for the world famous Beverly Hilton Hotel in Beverly Hills, Calif., a $208 million construction loan for the Panorama North luxury high-rise in Las Vegas, the $230 million sale of the Marriott Aruba Resort & Casino, and an $85 million equity financing for Watermark Apartment Tower in Cambridge, Mass., among many others.
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About Sonnenblick Goldman
Sonnenblick Goldman is the industry's leading independent real estate investment banking firm. Founded in 1893 to serve the financing needs of the real estate industry, Sonnenblick Goldman provides a full range of financial services, including debt and equity placements, joint ventures, investment sales and advisory services. Headquartered in New York, Sonnenblick Goldman also has a strong presence in San Francisco, Hong Kong, Shanghai, Sydney and Tokyo. In 2007, the firm expanded its services and opened its seventh office, located in Boston. Further information can be found at Sonnenblick Goldman's website at www.sonngold.com.
About Cushman & Wakefield
Cushman & Wakefield is the world's preeminent commercial real estate services firm. Founded in 1917, the firm has 201 offices in 55 countries, and more than 12,000 professionals. Cushman & Wakefield delivers integrated solutions by actively advising, implementing and managing on behalf of landlords, tenants, and investors through every stage of the real estate process. These solutions include helping clients to buy, sell, finance, lease and manage assets. The firm also provides valuation advice, strategic planning and research, portfolio analysis, site selection and space location assistance, among many other advisory services. To find out more about Cushman & Wakefield, visit www.cushmanwakefield.com.
