Merger Brings Synergies in Line

OKLAHOMA CITY-Mergers between commercial real estate firms happen frequently – many of them, especially in large, primarily cities, are routine and may not make headlines. However, in cities like Oklahoma City, in which the commercial real estate community is close-knit and smaller, such mergers are news. Big news.

Such is the case of the merger last week between commercial realty executives Harrison Levy, Mark Beffort and Tim Strange and their associates, which now operate collectively under the company banner Newmark Grubb Levy Strange Beffort. In talking with GlobeSt.com, Beffort, who is taking the reins of CEO of the new concern and Strange, who is president, note that the merger was a matter of timing.

For years, Beffort and colleague Harrison Levy had operated as Grubb & Ellis-Levy Beffort. But when Grubb & Ellis filed for bankruptcy in early 2012, Beffort and Levy had decisions to make. "We weren't sure if we should hang on with what was going on or if there was another platform out there for us to join," Beffort says.

There was a discussion about potentially joining with Sperry Van Ness, where Strange had been building his affiliate William T. Strange & Associates since 2004. Ultimately, "we were interested in discussing with Tim what his long-range plans were," Beffort says. "One thing led to another, the merger began to materialize, and everything just felt right."

Strange, in the meantime, liked the idea of a merger. "We weren't interested in being acquired," he says. "There were a lot of principals out there talking to me about acquisition, but we weren't interested." The interest, he went on to say, was that of joining forces with another company. "Taking the best of the best and putting it together," he adds.

Both Beffort and Strange point out there are complementary parts to the merger, as opposed to overlap. For one thing, Levy-Beffort didn't have a multifamily component. With Strange's group as part of the organization, the company now has it. The office and industrial teams will merge nicely as well, Strange and Beffort note.

"I was really excited with Tim's leadership skills in running a brokerage firm," Beffort says. "That bodes well; Tim will actually be running the day-to-day operations going forward." Strange adds that the merger allows him to do his two favorite things: Selling (with a larger staff) and running the office. Beffort and Strange say it's too soon to talk about new hires and for now, the companies will continue to operate out of their existing offices, though there could be a move into a new office in late 2013.

Both men note that another large and important part of the merger involves the legacy issue. Harrison Levy's grandfather started a commercial real estate firm in Oklahoma City in 1905. That firm was passed down to Levy's father and then to Levy, who merged with Beffort eight years ago. "Those roots are deep; they go back before Oklahoma's statehood," Strange observes. "Now we're pleased to be carrying on the legacy that Harrison's father and grandfather started."