Peer group purchase.
Based in Memphis, PeerMark provides subscription-based commercial real estate information to approximately 60 brokerage firms and property owners in Memphis and Nashville.
The firm is approximately 66% owned by members of the local commercial real estate markets in the area.
"We're excited about this opportunity to expand our service offerings with these two important cities," said Andrew C. Florance, president & CEO of CoStar Group.
"Memphis and Nashville are major industrial hubs in the Southeast. Most of the major industrial property REITs have a presence in these markets, as do the leading national and regional service providers. While we believe the local firms in Memphis and Nashville will benefit from our technology, we're confident many of our existing customers will benefit from this expanded coverage."
PeerMark was co-founded in June 2000 by Wyatt Aiken, a principal in Commercial Advisors, LLC, which provides business real estate services, and Holley Dargie, a former director of market research for CB Richard Ellis.
The company currently tracks approximately 3,400 office, industrial and retail properties totaling over 326 million s/f.
"We're excited about joining with CoStar," said PeerMark chairman Aiken. "We view it as the next step in our commitment to provide commercial real estate professionals in Tennessee with the most accurate real estate information."
CoStar plans to begin upgrading PeerMark customers to CoStar Property Professional soon after the completion of the transaction.
CoStar Property Professional is the industry's most widely used property research and analysis tool.
CoStar plans to expand the PeerMark database through its intensive field research process and plans to increase the update frequency for buildings in the database from PeerMark's quarterly schedule to CoStar's 30-day update cycle and add thousands of building photos.
"Like PeerMark, our approach to research is highly personalized, and we share their commitment to providing world class customer service," Florance said.
The merger is subject to the approval of the PeerMark shareholders, as well as other closing conditions.
The parties anticipate that the transaction will close in May.
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|Title Annotation:||Technology: update; Peer Market Research Inc., acquisition|
|Publication:||Real Estate Weekly|
|Date:||Apr 28, 2004|
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