CBRE Unit Reports Term of Planned IPO

The offering, if successful, could raise between $187.5 million and $212.5 million for the company. The firm revealed its intent to issue the IPO in March. The net proceeds of a private placement of 20 million shares of common stock to institutional and accredited investors last year raised $300 million for the company. The goal is to have its stock listed on the New York Stock Exchange under the ticker symbol "CBZ."

As GlobeSt.com reported previously, Realty Finance intends toconvert to a REIT. Credit Suisse, Deutsche Bank Securities, Citigroup, Wachovia Securities and JMP Securities are underwriters in the IPO. At the completion of the offering, the company estimates it will have 31.7 million shareholders. In the filing, the firm states it will use the proceeds of the offering to repay outstanding indebtedness under its warehouse facilities.

Realty Finance reported total revenue of $15.4 million and net income of $2.3 million for the second quarter ended June 30. As of Aug. 30, the company had an investment portfolio valued at a little more than $1 billion. It was broken down as follows: $478 million (whole loans); $155.2 million (B loans); $185.6 million (mezzanine loans); almost $180 million in CMBS transactions and $58.4 million in joint venture deals.

The company is managed and advised by CBRE Realty Finance Management, LLC, an indirect subsidiary of CB Richard Ellis Inc., and a direct subsidiary of CBRE Melody & Co.

Ray Wirta, the former CEO and current vice chairman of CB Richard Ellis Inc., is the chairman of CBRE Realty Finance. Keith Gollenberg, a former Cigna Investment Management Capital Markets Group executive, is the company's president and CEO.