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CALIFORNIA / News and Insight on Business in the Golden
State | THE STATE / COMMERCIAL REAL ESTATE

CB Richard Ellis Gets Contaminated-Site Funds

September 09, 1998|Bloomberg News

CB Richard Ellis Services Inc., the nation's largest real estate services firm, said it received an investment from financier Leon Black for a fund that acquires contaminated properties. Though terms of the investment weren't disclosed, people familiar with the situation said Black invested about $100 million in the fund, called Keera. The investment will allow the fund to acquire as much as $250 million in properties, when debt is included. More investors are turning to contaminated sites, known as "brownfields," as U.S. real estate prices rise to levels not seen since the 1980s, making bargains harder to find. At the same time, state and local governments are easing rules for the cleanup of these properties in an effort to spur their redevelopment. "This is one of few areas of the U.S. real estate market that hasn't yet fully matured, and that presents a reasonable opportunity," said James Korinek, president of Keera. Los Angeles-based CB Richard Ellis provides commercial property brokerage and property management services through 200 offices in 29 countries. CB shares rose 25 cents to close at $28.06 on the New York Stock Exchange.

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