REAL ESTATE INVESTMENT
Conning and PEARLMARK | November 11, 2022
Conning, a leading global investment management firm, and Pearlmark Real Estate, L.L.C. (“Pearlmark”), a specialist investment manager of commercial real estate debt and equity strategies, today announced the signing of a definitive agreement for Conning & Company to acquire a majority stake in Pearlmark. Pearlmark will continue to operate autonomously with its investment team led by Stephen Quazzo and Doug Lyons.
“Partnering with Pearlmark is the latest example of our strategy to add best-in-class capabilities to meet the evolving needs of our clients, Pearlmark has extensive real estate knowledge and significant experience successfully working with insurance companies and other institutional clients to help them achieve their real estate investment objectives.”
-Woody Bradford, Chief Executive Officer and Chair of the Board of Conning
We are excited to collaborate with Conning while continuing to work with our industry partners and clients in providing real estate capital solutions, Conning’s investment and client-oriented culture is a perfect fit for our business, and they are the ideal strategic partner to help us strengthen and grow our platform,said Stephen Quazzo, Chief Executive Officer and Co-Founder of Pearlmark.
Founded in 1996, Pearlmark is focused on U.S. mid-cap real estate investments in both equity and debt. This holistic perspective enhances Pearlmark’s approach to sourcing, underwriting, and managing its investments, which drives value for investors. Pearlmark is headquartered in Chicago with additional offices in Denver, Nashville, and New York City.
The transaction is expected to close by early 2023, subject to customary approvals and closing conditions. Morgan, Lewis & Bockius LLP served as a legal advisor to Conning. CenterCap Group, LLC served as financial advisor and Drane & Freyer Limited served as legal advisor to Pearlmark.
Conning is a leading investment management firm with more than $180 billion in global assets under management as of September 30, 2022. With a long history of serving the insurance industry, Conning supports institutional investors, including insurers and pension plans, with investment solutions, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America. As of September 30, 2022, represents the combined global assets under management for the affiliated firms under Conning Holdings Limited (CHL) and Cathay Securities Investment Trust Co., Ltd. (SITE). SITE is a separate entity under Cathay Financial Holdings Co., Ltd which is the ultimate controlling parent of all Conning entities. The CHL CEO sits on the Board of SITE and helps oversee the business.
Pearlmark is a Chicago-based investment firm that targets domestic core, value-add, and opportunistic real estate opportunities via commingled funds, separate accounts, and joint venture structures. Since 1996, Pearlmark has sponsored more than a dozen real estate equity and debt investment programs and completed 565 real estate equity and debt transactions on behalf of investors, representing $5.3 billion in equity capital commitments and over $13.8 billion in gross investment value. Pearlmark is dedicated to creating value for its investors and offers a range of investment opportunities nationwide across various property types (office, industrial, multifamily).
REAL ESTATE INVESTMENT,INVESTMENTS
Broe Real Estate Group | December 16, 2022
Broe Real Estate Group (BREG), the multi-billion-dollar, Colorado based developer, has begun its first industrial development project within Southern Indiana's world-class industrial park, the River Ridge Commerce Center. BREG's 19.5-acre site will be anchored by a 300,000 square foot Class A industrial facility within the 6,000-acre global business park.
"Demand for high quality industrial space in the Louisville, Kentucky market is at an all-time high while vacancy rates within Southern Indiana and Kentucky remain at historic low levels, This spec project brings critical supply online to serve the sustained market demand and the need for modern logistics space."
-Broe Real Estate Group's Executive Vice President Reagan Shanley
BREG's project will feature rear load access, 36-foot clearance, and generous trailer parking space to support the highly sought needs of logistics, manufacturing, research, and technology tenants. The park's rail infrastructure enhancements, provided by The Broe Group's transportation affiliate OmniTRAX, continues to expand with park development to unlock rail access, shipping efficiency and low-cost transportation for new tenants.
River Ridge's centralized location, with strategic access to the Louisville, Kentucky metro region and central US markets, continues to attract industry leading companies – including GE, Amazon, Bose, and Medline – in sectors that span aerospace, automotive, food and beverage, information technology, life sciences, and pharmaceuticals. The park's economic impact is as powerful as its strategic location, with an employee pool that exceeds 10,000 people and regional economic output of nearly $2.5B. Local Ford Motors and UPS facilities continue to expand and have a major influence on the region.
River Ridge Development Authority Executive Director Jerry Acy said of the project, the River Ridge Commerce Center continues to be a magnet for growth thanks to our unparalleled logistics efficiencies and multimodal access to central US Markets. Broe Real Estate's debut industrial project in the north end of the Commerce Center is a major development milestone and will build upon our growing reputation as a world class location for business.
The new BREG project, planned to accommodate single or dual tenant occupancy, forecasts a summer 2023 construction commencement. Commercial Kentucky's Robert Walker and Greg Charmoli will lead leasing activity. The project design team includes architect Ware Malcomb and the engineering services of American Structure Point.
About Broe Real Estate Group
Broe Real Estate Group, an affiliate of The Broe Group, acquires, develops and manages commercial real estate assets. Affiliated companies own and manage office and industrial properties, medical office buildings and multi-family communities across the country, including premier assets in many of the most desirable markets. The Broe Group has a 50-year history of value-add real estate investing in Colorado and across the United States. We improve value though the implementation of focused business plans that increase cash flow and create stable income streams.
About The Broe Group
Founded in 1972, The Broe Group is a private, multi-billion-dollar investment group with diversified holdings in real estate, rail, infrastructure, energy, agriculture, water, healthcare and technology throughout 37 North American states and provinces. Its deep operational knowledge derived from owning and operating multi-billion-dollar businesses and the global economic insights gleaned from serving its vast Fortune 500 clientele are strategic differentiators. The Broe Group's entrepreneurial focus enables it to find true value wherever it resides.
About OmniTRAX, Inc.
As one of North America's largest and fastest growing private railroad and transportation management companies, OmniTRAX's core capabilities range from providing transportation and supply chain management services to railroad and port companies, to providing intermodal and industrial switching operations to railroads, ports and a diverse group of industrial companies. Through its affiliation with The Broe Group and its portfolio of managed companies, OmniTRAX also has the unique capability of offering specialized industrial development and real estate solutions, both on and off the rail network managed by OmniTRAX.
REAL ESTATE TECHNOLOGY,REAL ESTATE INVESTMENT
SmartRent | January 03, 2023
SVN | SFR Capital Management (SVN | SFR), a privately held commercial real estate investment company that specializes in single-family build-for-rent (BFR) housing, recently announced a partnership with SmartRent, a provider of real estate technology solutions. SVN | SFR's rental communities are made to improve residents' quality of life, safety, and retention while lowering costs and making operations more efficient.
SVN | SFR Capital Management says that smart home technology has become an essential part of today's dedicated rental communities, and most renters are willing to pay more for houses with smart technology already built in. SmartRent's daily operational process solutions will help SVN | SFR and single-family rental renters by automating tenant technology and protecting assets.
As the BFR housing market alternative remains a popular commercial real estate (CRE) investment, SVN | SFR plans to buy and combine about 35,000 new construction BFR homes over the next 5–7 years, depending on the economy and tenant demand. The company will do this by raising an initial $12 billion in equity and debt capital, which it will use to build a large-scale institutional rental home portfolio and sell when it is stable.
SmartRent said today's operators and tenants want the modernization, optimization, and convenience that technology brings. The firm is thrilled to join SVN | SFR to usher in the age of smart solutions for their properties. With the help of SmartRent's hardware, software, and monitoring solutions, SVN | SFR's teams will be able to improve operational and financial efficiency as well as resident satisfaction across communities.
SmartRent's array of products and services encourages integrated modern living. Supported devices include locks that don't need keys, doorbells that ring, switches, dimmers, plugs, lightbulbs, thermostats, voice assistants, leak, motion, and door sensors. In addition, prospective residents/tenants can take self-guided tours and add ring devices for enhanced protection.
SmartRent, Inc., founded in 2017, is a recognized enterprise property technology company built by and for real estate operators. All the company's products, including smart house-building hardware and SaaS solutions that run in the cloud, make it easy to see and control real estate assets. SightPlan, its subsidiary, specializes in workflow management solutions that automate the property lifecycle. The powerful, end-to-end enterprise platform from SmartRent and SightPlan boosts efficiencies and delivers cost savings and extra income streams, along with elevating user experiences.