Koll Co. Unit Takes Boston Firm as Partner : Real estate: New management company will oversee buildings totaling 55 million square feet, about half of it outside California.
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NEWPORT BEACH — Koll Management Services Inc., inching its way across the country, announced Wednesday that it has formed a partnership with a Boston property management company.
In a 50-50 deal with the Koll Co.’s property management division, CC&F; Asset Management will share its portfolio of 15 million square feet of commercial and industrial real estate in Boston, Washington, Baltimore and Chicago. However, CC&F; will not participate in overseeing the 40 million square feet already under the wing of Newport Beach-based Koll Management.
The partnership brings Koll Management’s portfolio to a total of 55 million square feet, about half of which is now outside California. Financial details of the transaction were not disclosed.
Over the past few years, Koll Management--one of the nation’s largest property management companies--has added buildings in Phoenix, Seattle, Portland and Dallas. Last April, it moved into the Midwest, assuming responsibility for buildings in Ohio. The latest move gives Koll Management a foothold on the East Coast.
“This was our next bold step,” said Glen Raiger, corporate vice president of Koll Management. “We plan to take on more properties on the East Coast, and now we have the advantage of splitting our costs” with CC&F.;
CC&F; is wholly owned by the Chicago-based Field Corp., which founded the Marshall Field department store chain. The company manages properties developed by the Cabot, Cabot & Forbes real estate company, which is also owned by Field Corp.
“The decision to form the partnership was an easy one for us,” said Marshall Field V, chairman of Field Corp. “We were strong in the New England area, they (Koll Management) were strong on the West Coast. We looked at each other and decided that together we would be better competitors against those lined up against us.”
As of Jan. 2, CC&F; employees began answering their telephones “Koll Management Services”--although the official name of the partnership is Koll-CC&F; Asset Management. “We didn’t have room for both names, and they were bigger than us,” Field said with a laugh.
In the agreement with CC&F;, Koll Management has the right to buy out its partner in five years. “So we’re running our business as if Koll already owns it,” Field said.
Field said no personnel changes are planned for CC&F; Asset Management.
In the deal, Koll Management inherited the management of one of Boston’s most prestigious buildings, 60 State Street, a 38-floor, 800,000-square-foot high-rise.
It also gained the 800,000-square-foot headquarters for Marine Midland Bank in Buffalo, N.Y., and the 300,000-square-foot Lotus Building in Cambridge, Mass., the computer company’s headquarters.
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