CBRE Sets Sights on RKF

NEW YORK CITY—In yet another coming together of brokerage firms, CBRE is reportedly looking to buy RKF a smaller firm that's focused on retail, according to the Real Deal. The companies were said to be in discussions for several weeks. CBRE declined to comment to GlobeSt.com and a RKF spokesman says “there are no plans to sell RKF.”

Such a merger would create efficiencies for CBRE and for RKF, retail analyst Glenn Brill, managing director of the real estate and infrastructure solutions practice at FTI Consulting, tells GlobeSt.com. “RKF is known to have relationships with retailers. That's a terrific match for CBRE, which works with landlords. Put the two together and it creates efficiencies.”

He continues, “There's nuance involved in merchandising, understanding what's going on in the retail business and what retailers are looking for. RKF provides all of that while CBRE offers project management and construction management services., among other skill sets.  With the two firms working together, things like store openings can get done more quickly.”

Indusry watchers tell the Real Deal that RKF would sell for between $40 million and $80 million, based on an estimate of the firm's EBITA of $4 million to $8 million.

RKF was the second most active firm in Manhattan based on total square feet leased from 125th Street and below in 2013, according to a TRD ranking. Top brokers at the firm include Gary Alterman and Karen Bellantoni, both EVPs.

The firm expanded in recent years and now has offices in seven US cities, including Los Angeles, Las Vegas and Chicago, as well as an international presence in London and Toronto.

CBRE and RKF would be following in the footsteps of several firms that have come together this year. Studley and Savills came together in May to create a global firmand then Cassidy Turley was picked up by TPGin late September. Related followed suit earlier this month when it bought CORE in an effort to bolster its condominium sales practice.