CBRE Boosts Valuation Business With Florida Valuation Buyout

In an effort to strengthen its business and widen the company’s service offerings, CBRE Group, Inc. (NYSE:CBRE) recently announced the acquisition of Florida Valuation Group, Inc. Financial terms of the deal remain undisclosed.

Notably, Florida Valuation is a commercial real estate appraisal firm specializing in appraisal and litigation support related to eminent domain proceedings across Florida and the Southeast region. While the operation will remain headquartered in Jacksonville, FL, the firm’s three principals, Nick Chop, MAI, R/W-AC; Courtland Eyrick, MAI, AI-GRS; and Justin S. Markley, MAI, CCIM, join CBRE as directors.

The three principals and their teams have years of expertise in commercial and litigation appraisal. Particularly, Chop has more than 25 years of real estate appraisal and consulting, while Eyrick brings with him 18 years of practice in preparing appraisals for litigation support, financial institutions, state agencies, and individuals, with a specialty in eminent domain valuation. Further, Markley has more than 11 years of experience and has provided appraisals, real estate consulting, market analysis and litigation support across all commercial real estate types.

Notably, CBRE banks on strategic tie-ups and in-fill acquisitions to widen its geographic coverage, as well as expand and reinforce the company’s service offerings. During 2018, the company acquired a retail leasing and property management firm in Australia and two firms in Israel. Further, the company acquired a commercial real estate services provider in San Antonio, a provider of real estate and facilities consulting services to healthcare companies across the United States as well as the remaining 50% equity stake in its New England joint venture. Also, in 2017, the company completed 11 in-fill acquisitions.

CBRE’s extensive real-estate product and service offerings, improving leasing and outsourcing business, in-fill acquisitions, transformational deals, and healthy balance sheet are expected to be conducive to long-term results. Particularly, the latest acquisition of Florida Valuation fortifies the company’s capacity to provide superior outcomes for clients facing eminent domain situations.

However, with a shift toward a comparatively lower margin business, CBRE’s margin is likely to be affected in the upcoming days. In addition, amid trade tensions, political uncertainty and volatile equity markets, investment volumes are anticipated to be softer owing to cautious approach of investors.

Currently, CBRE carries a Zacks Rank #2 (Buy).

Other Key Picks

Investors interested in the real estate industry can consider some other top-ranked stocks like Colliers International Group Inc. (TO:CIGI) , HFF, Inc. (NYSE:HF) and Jones Lang LaSalle Inc. (NYSE:JLL) . While Colliers International and HFF currently flaunt a Zacks Rank of 1 (Strong Buy), Jones Lang LaSalle carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Colliers International’s Zacks Consensus Estimate for 2019 earnings moved 9% north to $3.27 in a month’s time.

The Zacks Consensus Estimate for 2019 earnings for HFF moved up 4.2% to $2.76 over the past month.

The current-year earnings estimates for Jones Lang LaSalle climbed 2.6% in the past month to $11.34.

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