CB Commercial Changes Name to CB Richard Ellis After Merger

Los Angeles-based CB Commercial on Monday announced it has changed its name to CB Richard Ellis, reflecting the merger with a London-based real estate services firm.

The two companies announced the deal in December, when CB Commercial agreed to pay $100 million cash and stock for REI Ltd., which operates under the name Richard Ellis in 28 countries. The union, which was finalized late last month, created a global real estate services firm with more than 8,000 employees spread over 200 offices.

“The new name CB Richard Ellis was a natural,” said Jim Didion, president and chief executive of CB Richard Ellis, in a statement. “It allows us to take advantage of two already well-established brand names in a way that creates immediate positive recognition around the world.”

REI’s chief executive, Barry White, assumed the position of vice chairman of the firm’s global operations management board.

The merger did not include the British real estate operations of Richard Ellis, which are owned by Richard Ellis Group Ltd.

In a separate development, CB Richard Ellis announced it has teamed up with two Pittsburgh real estate firms to create the largest brokerage and real estate services firm in that city.

The partnership--which will be called CB Commercial Pittsburgh--includes Galbreath Company Mid-Atlantic and Arnheim & Neely. The new firm will oversee management and leasing of more than 8.4 million square feet of office space.

The acquisition of REI and the Pittsburgh venture are part of the expansion drive CB Commercial launched after its initial public offering in 1996. Last year, the firm purchased Newport Beach-based Koll Real Estate Services, which was one of the nation’s largest property managers, for $160 million.

CB Richard Ellis shares fell 94 cents to $36.38 on the New York Stock Exchange on Monday.