September 6, 2011

Andrew Farkas’ C-III Capital Partners Acquired JER Partners

C-III Capital Partners, a diversified real estate services firm led by Andrew Farkas, announced Tuesday that it has acquired the commercial real estate special servicing and collateralized debt obligation management businesses of JER Partners for an undisclosed sum.

JER is the named special servicer for $35.5 billion of commercial real estate loans, of which approximately $4 billion is currently in special servicing and under active management. C-III will merge JER’s special servicing operations into its wholly-owned special servicing firm, C-III Asset Management. With the acquisition, that company is now the named special servicer for approximately 14,000 loans with an aggregate balance in excess of $152 billion, of which approximately $17 billion is currently in special servicing.

“This acquisition strengthens C-III’s position as one of the top three special servicers in the country and advances our growth strategy,” said Andrew Farkas, CEO of C-III Capital Partners. “Special servicing is a key foundation of our strategy to create a fully-diversified commercial real estate company.”

The acquisition of JER’s special servicing and certified debt obligation management businesses follows 16 months of growth for C-III. It purchased Centerline Capital Group’s commercial loan servicing and institutional real estate debt fund management businesses in March 2010. Since that time, C-III has successfully launched mortgage origination, investment sales and title insurance businesses and expanded its principal investment, loan origination, fund management and primary and special loan servicing businesses. Two months ago, it announced its agreement to acquire NAI Global, the largest network of independent commercial real estate services firms worldwide.

Mr. Farkas also founded and heads Island Capital Group, a real estate merchant banking firm specializing in real estate investing, real estate operating businesses and real estate securities.

Read the full article on Crain’s New York Business.