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Rumor’s True: Jones Lang Buys Staubach for $613M

The next round of consolidation among real estate brokerages is under way. And it could lead to some employee changes locally.

Chicago-based Jones Lang LaSalle Inc. announced plans in mid-June to buy Dallas-based Staubach Co., the country’s largest brokerage that exclusively represents tenants in lease deals, for $613 million.

The acquisition had been rumored to be in the works for months. Former Dallas Cowboys quarterback Roger Staubach, who founded the company 31 years ago, will remain as a director and executive chairman of the combined company.

Nationally, the acquisition is big news. The combined revenue of the two companies, which count some 200 offices, is roughly $3.2 billion. Jones Lang represents both landlords and tenants and has a sizable property management and investment management business.

Analysts say the combined Jones Lang-Staubach would likely be only second in size to Los Angeles-based CB Richard Ellis Group Inc. among the country’s largest commercial real estate brokerages.

Last year’s acquisition of Grubb & Ellis Co. by Santa Ana’s NNN Realty Advisors was valued at $725 million at the time of the deal, although the company now counts a market value of about $350 million.






Staubach: to remain as director, executive chairman of combined Jones Lang-Staubach company, which should be second largest brokerage in the US

How much the news reverberates locally remains to be seen.

Staubach ranked No. 14 on the Business Journal’s April list of top Orange County brokerages, working on more than $400 million in business in 2007. It counted about 26 brokers in its Newport Beach office.

Cresa Partners LLC was the largest brokerage on the list that exclusively represents tenants, placing at No. 12 with $552 million worth of business last year.

No. 15 was Travers Realty Corp., at $385 million; and No. 17 was Studley Inc., at $282 million.

Jones Lang, which didn’t make our list this year, announced expansion plans in OC last September.

They opened an office in Newport Beach’s MacArthur Court to offer tenant representation, sales, project and development services and leasing services, along with core brokerage operations, the company said at the time.

Company officials said Jones Lang and Staubach, who employ a combined 143 people in OC, are working out plans for combining the two Newport Beach offices.

Other pure tenant rep brokerages see the deal as a chance to grab some business, as well as brokers.

Southern California officials from Cresa Partners,many of whom previously had ties to Staubach,said they’re already recruiting some Staubach brokers.


Aliso Sale on Tap

About half of the Aliso Viejo Town Center is up for sale.

A 14.5-acre, 181,160-square-foot portion of the shopping center has been put on the market by its owner, New York-based CLF Aliso Viejo Business Trust. The asking price is $58.8 million, or about $324 per square foot. At that price, the property would have a capitalization rate of 5.8%.

A 144,204-square-foot Lowe’s home improvement store comprises most of the property that’s on the trading block.

The entire shopping center totals about 700,000 square feet. A separate portion of the shopping center that includes a movie theater isn’t part of the for sale package.

Irvine’s Faris Lee Investments, which has carved out a niche breaking down shopping centers into several smaller sales, is marketing the property. In early 2006, Faris Lee brokered another 47,000-square-foot section of the shopping center, for $39 million.

That $830 per square foot sales price for that deal is believed to be a record for an OC retail property.


Precept Stays Put

FBP Insurance Services Inc., a benefit consulting and administration outsourcing company that operates under the name Precept, has renewed the lease on its 32,000-square-foot Irvine headquarters.

The company takes up the second floor at 130 Theory Drive, part of University Research Park. The five-year renewal is valued at about $5 million, which would put the monthly rent at close to $2.60 per square foot.

Bruce Schuman, Jeffrey Von Stein and Royce Sharf of Studley’s Irvine office represented Precept, which has been at the building since 2003. The landlord, The Irvine Company, was represented in-house by Gary Gerson.

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Mark Mueller
Mark Mueller
Mark is the Editor-in-Chief of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.
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