CB Richard Ellis makes a splash: hiring Tighe, Murphy, Nanninga part of $100m people investment.

In a move that trumpeted the entrance of a new competitor into New York's commercial market, CB Richard Ellis announced the hiring of three new employees on Tuesday - including that of Mary Ann Tighe, the woman who most recently served as vice chairman of Insignia/ESG Tighe, who represents such clients as The New York Times Company and the Rockefeller Foundation, will now serve as president and CEO of CB Richard Ellis' New York tri-state region, working with a budget of approximately $120 million to expand the company's New York presence.

Patrick Murphy, formerly executive director of Insignia/ESG's New Jersey operations, and Cherrie Nanninga, director of sales for the Port Authority of New York and New Jersey, will serve as Tighe's executive managing director and chief operating officer, respectively.

At a news conference announcing the event, CB Richard Ellis explained the appointments and the new allocation of funds as first steps in its campaign to become a major player in the New York region. Although the company is one of the most successful in the world, CB Richard Ellis' New York transactions account for only 6% of its annual revenues.

"New York is the most important market in the world and it is our Achilles' heel," said Brett White, president of CB Richard Ellis -- Worldwide. "This is the first phase of our solution to the problem. We are investing more than $100 million on people first, then on the technology infrastructure, and finally on the facilities. For us, this signifies a significant increase in our investment in the region."

Tighe, who will be in charge of attracting new talent to the firm, plans to spend the next few months building a superior sales team for its New York office.

"The idea is to fill the missing skill sets and experience levels among CB Richard Ellis' existing professionals," she said. "And we are not going to hire from the usual places. We'd love to hire from the public sector, from the major corporations, because these people usually think of the market as a whole.

The hiring process is going to be done with incredible precision, we will only bring in people with exceptional talents." When it comes to her own decision to leave Insignia/ESG, Tighe says she simply wanted a greater challenge.

"I had a desire to do what I was doing, but at a higher level of play," she said. "After we finally closed the New York Times deal, a deal that included every conceivable part of the business, I realized that it was the way I wanted to work. And CB Richard Ellis has an incredible tool kit in terms of talent, they had just gone private, and they needed help in New York, which is the one thing I know how to provide."

CB Richard Ellis executives insist that they will honor their employees' contract obligations should major brokers from other companies join their team. But Tighe's own departure might become a source of tension between CB Richard Ellis and Insignia/ESG, especially since some of Tighe's clients have included her into their contracts and will probably leave Insignia/ESG with her.

Tighe dismisses such concerns as unfounded, however. "Insignia/ESG is a big firm, it has a depth of talent, and I am sure the people at Insignia would want their clients to have control of their own destinies," she said.

As for Cherrie Nanninga, the person who will now handle all of CB Richard Ellis' tri-state operations, she says she left the Port Authority for emotional reasons.

"I joined the World Trade Genter leasing team right after the 1993 bombing, when business was not doing so well," Nanninga said. "We raised the occupancy level, signed one of the biggest deals in the City last summer, and then six weeks later it was all gone. And I felt that my best contribution would be to join a real estate firm and help Downtown come back."

Tighe and Nanninga have already discussed creating a CB Richard Ellis office in Lower Manhattan, but according to Tighe the timing is not yet right.

"We feel that we need to make a commitment Downtown, but the question is what's the right model for it?" she said. "Downtown has always been seen as second to Midtown. How do you make the commitment without making people feel like they are in exile?" In general, Tighe is reluctant to make any specific plans or projections for the future, noting that expanding one's presence in the marketplace is a process that takes some time.

"The market being quieter now is an opportunity," she said. "Now you can implement change, while also making deals. We have to keep our ambitions in check. And then, I hope, we can move from being a player in the market to being a leader."

As for CB Richard Ellis, its executives say the expansion in New York is part of a greater strategy.

"We plan to consolidate a market-leading presence in the top 25 commercial real estate markets worldwide," White said.