A major change has occurred in the real estate market. Recently, Resource America announced that it would be sold to C-III Capital Partners. C-III is a commercial real estate services company that engages in several different business activities. They issue special and primary loans, the manage funds, they invest, and they participate in multifamily property management. Their business is extremely lucrative, and Resource America will be an amazing addition to the C-III portfolio. Resource America was bought for just $9.78 a share, for a total of $207 million.
Resource America’s Board carefully considered the bid and unanimously agreed to the bid. The price per share was more than reasonable, and their investors should be extremely happy.
C-III should benefit considerably from adding Resource America to their business. Resource America was known for asset management, and they had a huge portfolio. The currently manage an REIT, four non-traded REITs, and a couple other investment companies. They were talented at raising capital via their independent broker-dealer network. Currently, C-III manages $3.8 billion for their institutional investors. Their mortgage origination business has created $4.5 billion worth of commercial real estate loans since 2010. This company is a major player in the real estate market.
The leadership of Resource America was extremely pleased with the transaction. Jonathan Z. Cohen, the President of Resource America, was extremely proud of the value that they received for their shareholders. He feels that this deal will position the companies to make money for years to come. He feels that the company should continue making quality investment products for several years to come.
The leadership at C-III was equally proud of the transaction. Andrew Farkas is the CEO of the company, and he feels that this purchase is a major milestone for the company. The transaction greatly improves C-III’s position within the industry, while also allowing the company to diversify their actions. They are extremely proud of the transaction and they hope to grow.
C-III is planning to retain the leadership of Resource America’s asset management businesses. The transaction will finish up in the third quarter of 2016 after Resource America’s stockholders approve the transaction. This should be a simple matter, but the stockholder meeting will be covered by media around the world.
C-III is now positioned as one of the most powerful companies in the resource management field. They have the knowledge and portfolio of Resource America on their side now.