The Trammell Crow Co. sold its pension real estate advisory business, Trammell Crow Realty Advisors, to Sarofim Realty Advisors.
Terms weren't disclosed, but the deal was structured as an assignment of management contracts for three limited partnership funds and one separate account.
The separate account, managed for the General Motors Corp. retirement plan, New York, co-invested in properties owned by the limited partnerships, in which GM also was an investor.
Other Trammell Crow pension clients were: the Los Angeles County Employees' Retirement Association; Ameritech Corp, Chicago; DuPont, Wilmington Del.; Cummins Engine Co., Columbus, Ind.; the State of Michigan Retirement System, Lansing; plus several insurers and foreign investors.
Besides General Motors, other clients of Sarofim include Hughes Aircraft Co., Los Angeles; Readers Digest Association, Pleasantville, N.Y.; U S WEST, Englewood, Colo.; American Electric Power, Columbus, Ohio; and the Stanford University endowment.
The net asset value of the funds and separate accounts was $1.2 billion. The acquisition brings Sarofim's assets to $2.25 billion.
The 18 employees of Trammell Crow Realty moved to Sarofim. Both firms are based in Dallas.
Charles Lathem, vice president of Sarofim, said Trammell Crow decided to exit the pension fund advisory business because its funds had performed poorly and were due to liquidate between 1998 and 2000.
Trammell Crow Realty holds mainly retail, office and hotel properties.
- Marlene Givant Star
