Elliman acquires Bellmarc's residential property management business [UPDATE].
From left: Howard Lorber chairman of Prudential Douglas Elliman, Neil Binder, co-founder and principal at Bellmarc Companies, and John Janangelo, president of Bellmarc Property Management Update (6:50 pm): Comments from Lorber and Binder added
Update (6:50 pm): Byline added
Douglas Elliman Property Management has acquired Bellmarc Property Management's residential portfolio, the firms announced. In the deal, Elliman will assume management of 50 buildings, including 15 East 69th Street, 870 Fifth Avenue and CitySpire Center. "We are excited about the transition of this aspect of our business to Douglas Elliman Property Management, as it is a win-win for both companies," said Neil Binder, principal of Bellmarc Property Management, an arm of Bellmarc Companies. "Douglas Elliman Property Management will be able to build on its impressive exiting portfolio of properties and Bellmarc will focus on enhancing its core business of residential brokerage." Elliman boasts that it is Manhattan's largest residential property manager. With the 50 additional buildings, Elliman's portfolio will grow to 300 buildings. Douglas Elliman Property Management falls under the umbrella of Prudential Douglas Elliman Real Estate.
The deal puts John Janangelo, president of the erstwhile Bellmarc Property Management, and Jim O'Connor, president of Douglas Elliman Property Management, as "top executives," Howard Lorber, chairman of Prudential Douglas Elliman, said, although he contends that specific titles haven't been ironed out yet. The property management company is an arm of Prudential Douglas Elliman.
The move to acquire Bellmarc came after a five-year friendship between Lorber and Janangelo, whose company manages the Upper East Side building where Lorber resides.
"It made sense to do something together," Lorber said of acquiring Janangelo's arm of Bellmarc. "Like everyone else, he's looking for growth."
But what's growth for Janangelo is a welcome departure for Neil Binder, co-founder and principal of Bellmarc Companies, which had owned Bellmarc Property Management.
Binder told The Real Deal that his firm has looked to its real estate practice as its "core company," and that the shedding of Bellmarc Property allows more freedom to focus on that branch of the business.
"I really felt that I wanted to focus on the [brokerage]," Binder said, who added that he was approached with the offer.
Neither Lorber nor Binder would disclose the details of the deal, citing confidentiality agreements.
Almost all the Bellmarc Property Management team members were absorbed by Douglas Elliman, according to both Binder and Lorber, with a few "duplicates," being shed. The group will operate out of an approximately 10,000-square-foot space at 605 Third Avenue at 40th Street, where Douglas Elliman Property Management is based.
The acquisition of Bellmarc Property Management adds approximately 20 new staffers to Douglas Elliman's current team of 220, Lorber said.
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|Publication:||The Real Deal|
|Date:||Feb 2, 2010|
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