Tag Archives: merging

CoStar Exclusive: Madison Marquette, PMRG Merging

Washington, D.C. Investment Manager to Hook Up with Houston Services Firm

Madison Marquette, a leading real estate financial investment management firm, and PM Realty Group, a powerhouse in home management and proprietor representation, are in speak to merge their firms.

The merger will develop a brand-new company that mixes Madison Marquette’s experience in helping manage landmark mixed-use tasks, such as The Wharf in Washington, D.C., and PMRG’s long history of home management and advancement services. The two business already have been pitching brand-new organisation together, touting their integrated strengths.

The merger comes as mid-sized services companies look for their place in the brokerage world controlled by the Big 3 – CBRE, JLL and Cushman & & Wakefield. Companies such as PMRG, Avison Young, Newmark Knight Frank and Cresa Partners are looking for alternative methods to take on the global players.

Just this week, several PMRG executives participated in ICSC’s RECon convention to read more about retail and its key role in today’s mixed-use jobs.

“Madison Marquette, one of the country’s leading independently held business real estate financial investment and operating business, and PMRG, among the nation’s premier privately held business property firms focusing on task leasing, property management, investment management and advancement services, confirmed today that they are in conversation to merge operations. Closing is anticipated in the next 30 days,” Madison Marquette stated in a declaration to CoStar News.

The merger is contingent on approval from a majority of the firms’ clients and 100 percent approval from certain key clients, inning accordance with PMRG executives.

Madison Marquette, of Washington, D.C., is known for its participation in prominent mixed-use jobs including the $2.5 billion The Wharf on D.C.’s waterfront, Asbury Park in Monmouth County, NJ, and 2 and 48 Stockton Street in San Francisco’s Union Square. The company is led by Chairman Amer Hammour and President John Fleury, who was a veteran Cassidy Turley executive.

Houston-based PMRG is regarded as one of the top home management and property manager representation companies, and has tasks extending from Washington to Los Angeles and Honolulu.

Editor’s Note: This post will be upgraded as more information comes in.

Blackstone and Starwood Merging Rental House Portfolios to Produce $11 Billion Company

Combined Portfolios Will Consist of 82,000 Single Household Rental Homes, the Largest in the USA

The Blackstone Group’s(NYSE: BX)Invite Houses(NYSE: INVH)and Starwood Waypoint Homes(NYSE: SFR), two of the nation’s largest rental-home owners, are integrating in a 100% stock-for-stock merger that would produce one of the largest owners of rental houses in the U.S. with approximately 82,000 single-family rental homes.

The combined business will operate under the Invite Homes banner and continue trading on the New York Stock Exchange under the ticker symbol for Invite Homes (NYSE: INVH).

Under the terms of the agreement, each Starwood Waypoint Residences share will be transformed into 1.614 Invitation Homes shares, with Invitation Homes stockholders will own around 59% of the combined business’s stock.

Based upon the closing prices of Starwood Waypoint Homes common shares and Invite Homes typical stock on Aug. 9, 2017, the equity market capitalization of the combined business would be approximately $11 billion and the total business value (consisting of debt) would be roughly $20 billion.

Invite Houses stock was up 80 cents on the news today (3.81%) to about $21.80/ share. Starwood’s stock leapt much more: $2.90/ share (9.22%) to $34.35/ share.

This tactical deal combines two business with highly complementary abilities, including Invite Houses’ industry-leading approach to customer service and asset-management competence, and Starwood Waypoint Homes’ industry-leading technology. In addition, the current Starwood Waypoint Houses CEO Fred Tuomi, who will end up being CEO of the combined business, has experience effectively incorporating mergers of large-scale, single-family rental business. In general, the 2 business have actually invested nearly $2 billion, an average of approximately $22,000 per house, in restorations and upkeep, improving resident experience and driving financial growth and task production in local communities.

The combined business would own and manage a portfolio of approximately 82,000 single-family homes.

The two companies have really similar portfolios of homes focused on overlapping, high-growth markets – with nearly similar average monthly leas and almost 70% of combined business earnings originating from the Western United States and Florida.

The combined portfolio would likewise have approximately 4,800 houses per market, enabling it to leverage economies of scale and enhance operating performance.

The combined company experienced pro forma same-store net operating income (NOI) growth of 7.0% in 2Q 2017 with over 95% occupancy.

The companies’ combined portfolios still represent less than 0.1% of the more than 90 million single-family homes in the United States, and simply 0.5% of the almost 16 million single-family houses for rent in the U.S.

Upon conclusion of the deal, Fred Tuomi, CEO of Starwood Waypoint Houses, will end up being CEO of Invitation Houses; Ernie Freedman, CFO of Invitation Residences, will remain CFO; Charles Young, COO of Starwood Waypoint Residences, will end up being COO; and Dallas Tanner, CIO of Invite Houses, will stay CIO. The combined business will be locateded in Dallas, Texas, and will preserve a presence in Scottsdale, Arizona.

The combined company is expected to produce projected yearly run-rate cost synergies of $45 million to $50 million. The combined company is likewise anticipated to benefit from a flexible balance sheet with lower long-term cost of capital and a continued course towards deleveraging.

The deal has been all authorized by the boards of both Starwood Waypoint Residences and Invitation Houses. Blackstone, the bulk investor of Invite Homes, has likewise granted the contract. The deal is expected to close by year-end, subject to approval by Starwood Waypoint Residences stockholders and other traditional closing conditions.

Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are serving as monetary consultants and Simpson Thacher & & Bartlett LLP is functioning as legal advisor to Invite Residences. Morgan Stanley & & Co. LLC and Evercore are serving as financial consultants and Sidley Austin LLP is serving as legal advisor to Starwood Waypoint Houses.

RLJ Accommodations and FelCor Merging in $1.2 Billion Offer

Merger Creates Third Largest ‘Pure-Play’ Hotel REIT with Market price of $4.2 Billion

FelCor Lodging Trust Inc.(NYSE: FCH)has actually consented to combine with and become a wholly-owned subsidiary of RLJ Lodging Trust (NYSE: RLJ) in an all-stock transaction.

Under the deal, each FelCor share will be converted into 0.362 shares of recently released shares of RLJ common stock in a taxable merger. The combination is expected to offer RLJ a post-merger pro forma equity market capitalization of $4.2 billion and a total enterprise worth of $7 billion.

FelCor’s stock closed last Friday at $7.32/ share. RLJ’s stock closed at $23.60/ share. A 0.362 share of RLJ’s worth relates to about $8.54/ share. With about 138.1 million shares of FelCor stock impressive, the offer has a stock worth of $1.18 billion.

FelCor owns 38 hotels with 11,329 spaces giving the offer a worth of about $104,150/ room.

RLJ stated combining the entities will establish the 3rd largest ‘pure-play’ lodging REIT by enterprise worth, offering it with more scale to profit from cost effectiveness, negotiate utilize and access to capital, and strategically recycle assets.

The combined business will have ownership interests in 160 hotels with 31,467 rooms, including premium-branded hotels located mainly in urban and seaside markets.

“In addition to being immediately accretive to our RevPAR, combining with FelCor broadens our geographic footprint in highly-desirable markets on the West Coast, while enhancing our existence in other seaside markets in the East and the South,” stated Ross H. Bierkan, RLJ’s president and CEO.

RLJ is anticipating $22 countless anticipated savings from the elimination of duplicative corporate basic and administrative costs.

Following the merger, which has been all authorized by the boards of both business, will maintain the combined company will operate under the RLJ Lodging Trust name and be led by RLJ’s senior leadership, consisting of Robert L. Johnson as executive chairman and Bierkan as president and CEO. The company’s headquarters will remain in Bethesda, MD.

. Worldwide law practice Hogan Lovells recommended RLJ Lodging Trust on a conclusive merger contract. FelCor was encouraged by Sidley Austin LLP.