BGC Partners Inc., a New York brokerage company, started the new year by buying two regional commercial real estate firms, including one in Philadelphia.
Smith Mack, a 28-year-old brokerage with four offices locally, was acquired by BGC, which first got into real estate in October 2011 when it bought Newmark & Co. Real Estate Inc. BGC then scooped up the bankrupt Grubb & Ellis Co. for $47.1 million in April.
On the same day that BGC announced its purchase of Smith Mack, the publicly traded company said it also bought Frederick Ross Co., a commercial brokerage in Denver. BGC did not disclose the financial details of either acquisition.
In Philadelphia, Smith Mack’s operations will become part of BGC’s Newmark Grubb Knight Frank commercial real estate advisory business. The Philadelphia operation is managed by J. Robert Clements, the firm’s executive vice president and managing director.
Smith Mack’s founding partners — Sidney Smith, Jeff Mack and Reid Blynn — were named executive managing directors of Newmark Grubb Knight Frank. A statement released by BGC indicated that “virtually all” of Smith Mack’s existing brokerage and advisory professional staff will join Newmark Grubb in offices in Center City, Marlton, Wayne and Wilmington.
“There is not another group of brokers in this market that could complement us so precisely,” said Clements in the statement.
Smith Mack has been affiliated with Newmark since 2009 when it dropped its affiliation with GVA Worldwide, another real estate operation that provides market research, corporate advisory and other services.