The Rockefeller Group to Acquire Majority Interest in TA Realty
- Oct 31, 2014
By Gail Kalinoski, Contributing Editor
The Rockefeller Group is expanding its global investment management platform with the acquisition of the majority stake in Boston-based TA Realty L.L.C.
The terms of the deal, expected to close by the end of the year, were not released.
TA Realty, which has about $12 billion in assets under management, will become The Rockefeller Group’s primary real estate investment management platform in the United States. The acquisition will enable The Rockefeller Group to establish a global platform totaling $32 billion in assets under management through Mitsubishi Estate Co. Ltd. The Rockefeller Group, based in New York City, is a wholly-owned subsidiary of Mitsubishi Estate.
“We’re proud to advance our investment management capabilities with the investment in TA Realty in the United States,” Atsushi Nakajima, president & CEO of The Rockefeller Group, said in a news release. “TA Realty brings an experienced management team with more than 20 partners averaging more than a decade with the firm. The team’s long tenure and industry experience signals a strong cultural fit with The Rockefeller Group on top of the complementary business objectives of both companies.”
Since its founding in 1982, TA Realty has acquired, invested and/or managed more than $22 billion of real estate on behalf of hundreds of institutional investors. The privately held firm currently manages four active value-added commingled funds and multiple separate accounts comprising more than 77.2 million square feet of commercial real estate and 14,000 residential units in 35 markets in the United States.
“These are complementary businesses with decades of expertise in real estate management. Our investors will benefit from the strengths of this partnership as it ensures the sustainability of TA Realty’s investment management culture for many years to come,” Steve Ruane, founder and managing partner of TA Realty, said in the release. “In addition, the partnership allows for the opportunity to expand the breadth of equity to our partners and key professionals enhancing our alignment with investors.”
When Nakajima was promoted to the top position at The Rockefeller Group in July 2013, he told Commercial Property Executive that his goals included expanding the company’s investment management capabilities as well as focusing on urban development and industrial development.
The Rockefeller Group has developed approximately 40 million square feet of commercial property, including more than 5 million square feet since 2008. The firm has its headquarters at Rockefeller Center in Midtown Manhattan, one of the world’s best known urban mixed-use complexes. Its portfolio is comprised of office and industrial assets in key U.S. urban and select suburban markets, as well as in Europe through its 2010 strategic investment in London-based Europa Capital. Most recently, it was part of a joint venture that sold 50 Beale St., a Class A, 23-story office building in San Francisco for $395 million.