Green Street to Sell a Majority Interest to Golden Gate

Green Street Advisors Inc., a 29-year-old U.S. real estate research company, agreed to sell a majority stake to private-equity firm Golden Gate Capital to finance growth.

Terms of the transaction weren’t disclosed in a statement yesterday announcing the deal. The investment will help Green Street expand research on real estate investment trusts and analytics for the private property market, said Craig Leupold, president of the Newport Beach, California-based company.

Green Street was founded in 1985 by Jon Fosheim and Mike Kirby, currently the firm’s chairman. The company was known mainly for research on REITs. In the past few years, it has expanded in commercial-property data, including indexes to track real estate prices and private-equity fund flows.

Commercial real estate is “a growing industry and one that has increasingly become more institutional in nature,” Leupold said in a telephone interview. “That’s driven an increased need for research and analysis to help institutions make good capital-allocation decisions. We’re sitting in a good place, and Golden Gate saw that opportunity as well.”

Managing Directors

Green Street, which also provides advisory and consulting services, has more than 90 employees. All 12 of its managing directors will continue in their current roles, the companies said. Golden Gate, which has more than $12 billion under management, invests mainly in technology, retail, industrial and business and financial services, according to its website.

“We look forward to partnering with Green Street to support and accelerate its growth and expansion into new segments while delivering enhanced products and greater value for customers,” Jake Mizrahi, managing director at San Francisco-based Golden Gate, said in the statement.

Evercore Partners Inc. advised Green Street on the transaction. It’s uncertain whether Eastdil Secured LLC, the real estate investment bank owned by Wells Fargo & Co., will keep its stake in Green Street, which is less than 5 percent, Leupold said.

(Corrects seventh paragraph to show it’s uncertain whether Eastdil will keep its stake.)
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