Koll Purchase Expands Property Under Management
Koll Management Services said Tuesday that it has acquired a property management and leasing portfolio on the East Coast and in the Midwest from Tishman Management & Leasing Services.
The company, which manages office buildings, business and industrial parks and retail centers, bought Tishman’s portfolio of 3.8 million square feet of properties in New York, Atlanta, Florida and Virginia. It will also manage properties in the Chicago area, where Tishman, based in New York, has operated as Tishman Midwest Management Corp. The terms of the deal were not disclosed.
The acquisition will increase Koll Management’s total property under management to 70 million square feet. About 50 employees who worked for Tishman will be retained by Koll Management, the company said.
“It’s more of a strategic acquisition to expand to new markets and grow from there,” said Glen Raiger, executive vice president of Koll Management. “The consolidation of this business is accelerating, and we’re playing the contrarian in the marketplace.”
The company already is negotiating to manage another 2.8 million square feet of space in Atlanta and an additional 5 million square feet in New York.
Koll Management, based in Newport Beach, expanded to the East Coast in 1991, when it entered into a joint venture with CC&F; Management Corp. in Boston to manage properties in Massachusetts and the District of Columbia.
On Tuesday, Koll Management also said it appointed William Fugazy Jr., former president of Tishman Management & Leasing Corp. in New York, as its regional president for the greater New York area. The company will operate there as Koll-Tishman.
Stanley J. Gaynor, president of Tishman Midwest Management Corp., and I. Steven Edelson, senior vice president, will serve as independent consultants to Koll Management.
Koll Management said the acquisition announced Tuesday was not related to its proposal last year to acquire Tishman West Cos. in Los Angeles. That deal fell through.
