CBRE to advise FDIC on bank assets
Sacramento Business Journal
CB Richard Ellis Group Inc. — itself reeling from the economic shakeout — just landed one of the fattest real estate clients in recent history.
The Los Angeles-based global real estate services firm was just selected as a primary adviser for residential and commercial real estate assets the Federal Deposit Insurance Corp. will acquire as it takes over failed banks.
A team led by CBRE (NYSE: CBG) team will be responsible for valuing, managing, leasing and selling FDIC’s real estate in the U.S., Puerto Rico and the U.S. Virgin Islands. The value of the contract was not immediately disclosed.
Real estate experts have compared the FDIC’s new task to the Resolution Trust Corp.’s massive assignment in the early 1990s. It was created to dispose of real estate the agency acquired from failed savings and loans.
Twenty-two banks have failed nationally so far this year, compared to three in 2007. An FDIC report issued Nov. 25 shows the number of banks on the agency’s so-called problem list grew to 171 during the third quarter, the highest number since 1995.
CBRE’s Public Institution & Education Solutions team will oversee ongoing client services, under the leadership of Theodore Carter, an executive managing director in CBRE’s Washington, D.C. office.
“We are thrilled to add the FDIC to our growing list of public-sector clients,” Carter said.
Ken Pearson in the Dallas office will oversee the day-to-day aspects of the account, with the help of a nationwide team of asset managers, property managers and marketing personnel.
CBRE has subcontracted with a number of other partners on the FDIC account. The subcontractors include Realogy Corp. — parent company of Sotheby’s International Realty, Coldwell Banker, Century 21 and ERA — to service the residential real estate portion of the FDIC account.
RR Donnelley’s Global Real Estate Services division will be the lead subcontractor for data management, reporting and inspection needs.
Over the first nine months of this year, CBRE saw its net income drop 71 percent from the same period a year ago.
Melissa Castro is a staff writer at the Washington Business Journal.
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