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CB Richard Ellis strengthens top position with purchase of Insignia

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CB Richard Ellis said Wednesday it purchased rival Insignia Financial Group Inc., a real estate and investment banking firm, for $415 million, further strengthening its position as the world’s largest real estate services company.

CB Richard Ellis officials said the combined company will operate as CB Richard Ellis and will have a portfolio of more than 700 million square feet worldwide; $1.75 billion in annual revenue; $9 billion in commercial financing; $14 billion in investment assets under management; nearly 41,000 appraisal/valuation and advisory assignments on properties with a total asset value of $414 billion; and an employee base of 14,500 workers in 48 countries, including 5,300 brokers.

Last year, according to Commercial Property News, CB Richard Ellis reported $45 billion in sales and lease transactions, while Insignia tallied $37 billion. Combined, the two companies accounted for more than $82 billion in transactions, outdistancing their closest competitor, Cushman & Wakefield Inc., by $44 billion.

“Today, we are realizing our vision for CB Richard Ellis as a company that marries unparalleled market intelligence with critical analytical thinking,” said Brett White, CB Richard Ellis president, in a statement. “This intellectual capital is supported by technology and resources that enable our people to provide expert answers and solutions to every commercial real estate issue and question.”

Officials at West Des Moines-based CB Richard Ellis/Hubbell Commercial, the company’s local affiliate and the largest commercial brokerage company in Iowa, said the acquisition is a defining moment in the firm’s history and that it grants clients access to expanded worldwide services.

“This clearly sets us apart from the competition,” said Kyle Gamble, senior vice president and managing director. “The benefit to Iowa is that it allows us to develop unique solutions for our local clients. It makes us a one-stop shop.”

Gamble said though CB Richard Ellis already has a presence in most markets, the additional market intelligence provided by Insignia brokers will help attract clients. “It’s a street knowledge business,” he said. “We need to have professionals on the ground who have knowledge of their market.”

Though the expanded network will allow CB Richard Ellis/Hubbell Commercial’s clients to tap into a larger global market, it also will improve Central Iowa’s market potential by increasing its exposure to a greater number of brokers, Gamble said.

“It sends a clear message that we’re aligned locally with a dominant player in the industry on a global basis,” he said. “Our roots are in Iowa and the majority of our customers are in Iowa, but this is an added service and we already have customers who are willing to take advantage of our enhanced platform. It gives us an opportunity to reintroduce our story and our services. It’s exciting.”