RREEF Americas said today it has exited the business of direct property management.
The New York-based firm said it had taken the decision to transition out of the business having been directly managing assets for clients for more than 30 years.
In the first signal of the change of direction, it has appointed Richard Ellis and Transwestern to take over direct property management of the office and industrial property portfolio currently managed by RREEF for its clients.
Prior to the selection of CBRE and Transwestern, the majority of the properties had been managed directly by RREEF, which will continue as the asset manager.
“After over 30 years of direct property management of our clients’ portfolios, we have made the decision to transition out of the property management business and assign these services to two carefully selected, highly skilled property management companies,” said Timothy Gonzalez, chief executive officer of RREEF Americas, in a statement.
CBRE has been assigned an office and industrial portfolio totaling approximately 70 million square feet. The properties are primarily located in northern California, the Pacific Northwest, the Northeast, the Midwest and Southeast.
Transwestern’s assigned office and industrial portfolio totals approximately 47 million square feet concentrated in the Midatlantic, southern California, the Southwest and Southeast.