Carey Winston, Transwestern Agree to Merge
Cleary, Mike, The Washington Times (Washington, DC)
Carey Winston/Barrueta, the largest commercial real estate firm in the Washington area, has agreed to merge with a Texas company, gaining national footing that both firms believe will bring them more business and offer a defense against growing competition.
Combined with Transwestern Property Co. of Dallas, the company will manage more than 60 million square feet of property, worth nearly $5 billion, and employ about 1,100 in offices in 24 cities. Transwestern President and Chief Executive Officer Jack Eimer said a merger would double the company's revenues, which were not revealed.
Carey Winston would be renamed Transwestern Carey Winston, becoming the Mid-Atlantic division of the Dallas company.
The merger should mean new referral business for both Transwestern and Carey Winston, especially from Transwestern clients already interested in moving into the Washington market, company officials said.
Carey Winston would benefit from Transwestern's experience in developing and owning property.
Transwestern's investment affiliate, which bought 425 I Street NW in April for an undisclosed price, likely will do more buying and developing here, said Tom Nordlinger, who will remain president of the Washington-based operation.
The affiliate would establish a base of buildings owned and leased within the company, Mr. Eimer said.
Besides access to the Mid-Atlantic market, Transwestern gains new services, such as research done by Carey Winston subsidiary Delta Associates, mortgage banking and access to Carey Winston's experience in tenant-side services. Transwestern is stronger on landlord-side services.
One local broker thought the deal would help the local firm. "It's good for Carey Winston," said Philip Meany, president of the Vienna office of commercial real estate brokerage Grubb & Ellis. He said being part of a national firm would help Carey Winston land more deals. …