RESIDENTIAL
Executives with Santa Ana-based First American Corp., which is in the middle of a big cost-cutting push, say they’re not actively looking to buy smaller title companies unless a clear-cut opportunity arises.
“We’d look at any good opportunity, if anybody approaches,” said Park Kennedy, First American’s chief executive, during the company’s recent quarterly call with analysts. “We’d be happy to talk.”
But right now, First American is “transforming our title business into a completely different way of operating,” he said. “We’re having some success there, so I’d hate to get distracted.”
True to its word, it appears First American allowed its main rival,Jacksonville, Fla.-based Fidelity National Financial Inc.,to walk off with one of the largest title operations in Colorado earlier this month.
Denver-based Mercury Cos. originally was negotiating to sell four title insurance companies it owned in Colorado,which in total account for about 30% of the title business in the state,to First American.
But that sale never closed, as another suitor appeared in less than a week after negotiations were disclosed. Days later, Fidelity said it was buying Mercury’s operations in Colorado. Terms of the deal weren’t disclosed.
Fidelity officials said their company now leads the market in the Rocky Mountain state.
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Kennedy: “We’re having some success there, so I’d hate to get distracted” |
First American and Mercury had a long business relationship in Colorado. First American reportedly had been making loans to Mercury since 2001, which resulted in litigation that’s yet to be concluded.
In First American’s second-quarter earnings re-port, it said it was valuing an undisclosed investment,believed to be Mercury,at $37.3 million. But write-downs of the investment might end up reducing the $42 million in profits the company posted for the quarter.
First American turned a second-quarter profit in the face a tough housing market, largely because of cost-cutting in its title operations. That continues to be the company’s focus, said Dennis Gilmore, First American chief operating officer.
“We’d have to be very opportunistic (in an acquisition) if the case was presented to us,” Gilmore said. “But right now we’re focused on our business.”
COMMERCIAL
Newport Beach’s KBS Realty Advisors and real estate investment trusts run by the company have been behind nearly $400 million of office buys and sales in the past month.
Recent buys include two deals in New Jersey, bought through the company’s KBS Real Estate Investment Trust II fund.
They include the $184.3 million acquisition of a 564,304-square-foot, four-building office park in Florham Park, N.J., and a $30 million buy of a four-story, 134,980-square-foot office building in Basking Ridge, N.J.
KBS sales include a 264,000-square-foot office building in downtown Chicago for a reported $30 million.
Closer to home, KBS Realty Advisors sold Paseo Del Mar, a three-building, 232,307-square-foot property in San Diego’s Del Mar Heights. The office complex, bought by a fund advised by Seattle’s Metzler North America Corp., sold for $148 million. KBS bought it in early 2007 for $120 million.
CB Hire
CB Richard Ellis Group Inc. has hired Cindy Burger as its managing director of asset services for Orange County.
She will oversee more than 61 million square feet under management. CB Richard Ellis is the largest commercial property manager in the county, with nearly twice the square footage as the second-largest company, The Irvine Company.
Burger previously was with Cushman and Wakefield Inc., where she was responsible for office, industrial and retail properties in Orange, Los Angeles and San Diego counties.
She replaces Barry Katz, who was promoted in May to senior managing director of asset services for the Western division of CB Richard Ellis.
Cesta Promoted
Marcus & Millichap Real Estate Investment Services Inc. named Joseph Cesta regional manager of the brokerage’s Newport Beach office.
Cesta has served as the sales manager for the office since December. He previously held a similar position at the company’s Ontario office. He joined the company in 2001 and became an associate in 2002, specializing in retail investments.
He replaces John Przybyla, who now heads up the company’s Chicago office.
