CB Richard Ellis Group forms new company

CB Richard Ellis Group Inc. and its subsidiary L.J. Melody & Co. have formed a finance company that specializes in originating, acquiring, investing in, financing and managing a diversified portfolio of commercial real estate-related loans and securities.

The company, called CBRE Realty Finance Inc., has raised gross proceeds of $300 million through the sale of 20 million shares of common stock to institutional and accredited investors. CB Richard Ellis Group Inc. has an initial equity stake of approximately 5 percent.

CBRE Realty Finance Inc.’s strategy is to generate a diversified portfolio of commercial real estate investments and to leverage those investments to produce attractive risk-adjusted returns, according to Keith Gollenberg, the company’s chief executive officer and president.

“CBRE Realty Finance has unique strengths derived from CB Richard Ellis’ local market intelligence, L.J. Melody’s access to origination channels and our senior executive team’s proven ability to create investment concepts and extensive experience in originating, structuring and financing commercial real estate financial products,” said Gollenberg. “This powerful combination will help make us a leader in developing innovative solutions for borrowers and sellers.”

Gollenberg previously led CIGNA Investment Management’s capital markets group and joined L.J. Melody as a managing director in 2004.

Ray Wirta, vice chairman of CB Richard Ellis Group Inc., will serve as chairman of the board of CBRE Realty Finance Inc.

The private placement offering was sold through a group of investment banks led by Credit Suisse First Boston.

In related news, CB Richard Ellis Group Inc. was named the most recognizable commercial real estate firm among real estate professionals, according to The Lipsey Co., a commercial real estate consulting firm.

Each year, the Lipsey Co. conducts a survey to determine the top 25 most recognizable commercial real estate brands. The company surveyed approximately 20,000 practitioners and leaders from larger metropolitan and urban markets, comprising executives from real estate investment trusts, lenders, commercial brokerages, asset managers, property managers and executives from international firms.

The top three companies – CB Richard Ellis, Cushman & Wakefield and Colliers International, respectively – held on to their spots from last year’s ranking.

Other most-recognizable companies include Grubb & Ellis Co., Trammell Crow Co., Equity Office Properties Trust, Jones Lang LaSalle Inc., NAI Global, The Staubach Co. and Prologis, ranking fourth through 10th, respectively.

New to the list are The Trump Organization (ranked 22nd), GVA Worldwide (ranked 23rd), Tishman Speyer Properties and CRESA Partners (tied at 25th).

CarrAmerica slipped the most, from 14th place last year to the end of the list in 2005.