Tooley & Co., one of California's largest office property management firms, was acquired Monday by Texas real estate giant Trammell Crow Co. for $23.3 million.
The combination of Los Angeles-based Tooley and Trammell Crow's California operations creates a company responsible for the management of 30 million square feet of office and industrial space statewide.
Tooley will operate as a subsidiary of Dallas-based Trammell Crow and retain all of its employees. Company founders Bill Tooley and Craig Ruth, chairman and vice chairman, respectively, will remain in their current positions. Bob Ruth will lead Tooley's operations as president.
The deal gives Trammell Crow, which owns and manages primarily industrial real estate in California, access to Tooley's experience in the office market, Bill Tooley said. In return, Tooley will be able to tap into the nationwide connections and services of Trammel Crow.
"It's a perfect fit," said Bill Tooley, who co-founded the firm in 1975.
Last month, Tooley & Co. agreed to sell a stake in its two largest assets to Cornerstone Properties Inc., a New York-based real estate investment trust. The purchase involves two high-rise office buildings in Los Angeles and Santa Monica that Tooley owns in partnership with Noro Group, a Dutch investment firm.
Cornerstone agreed to pay $60 million in cash and the assumption of debt for a stake in the partnership and has options to buy the remainder from Tooley and Noro.