CNL Commercial Real Estate to spin off from parent company

CNL Financial Group Inc. on Sept. 29 announced plans to sell CNL Commercial Real Estate to a group that includes the real estate firm’s partners in a joint venture with HQ Capital Real Estate LP. Terms of the deal weren't disclosed. Once the spinoff is completed, CNL Commercial Real Estate — which will change its name later this year — will be able to expand its corporate services and leasing and management platform throughout the Southeastern United States, as well as capitalize on its investment pipeline. The company has 200 employees. CNL Financial Group, meanwhile, will be able to focus more on its alternative investment platform, said a news release. “CNL Financial Group has a strong track record of incubating, growing and launching companies into the marketplace,” said CNL Financial Group CEO Thomas Sittema in a prepared statement. “I know the business will thrive under the continued leadership of its partners, and we are excited for the opportunities that lie ahead of them. We are proud to now count CNL Commercial Real Estate among our distinguished list of heritage companies.” Meanwhile, the newly independent real estate company will have Paul Ellis as CEO, Pryse Elam as president of the development and investment platform, and Ken Loeber as president of real estate services. The firm will continue to manage CNL Center I — the building that Red Lobster is headquartered in— and CNL Center II in downtown Orlando. Ellis, who currently is principal and group president of CNL Commercial Real Estate, said CNL Financial will continue to be an important partner of the firm. “We are also excited about joining with HQ Capital,” Ellis said in a prepared statement. “Its investment will provide our platform expanded access to capital and allow us to grow our services business and continue building a company that is needed in our space. We believe that there remains an opportunity to build an enduring company that focuses on our client’s needs as our own, partners with the best talent in the market to grow meaningful relationships and impact the communities within and around the projects we service, acquire and build.” HQ Capital Real Estate is the real estate affiliate of HQ Capital, a leading provider of alternative investments in real estate and private equity. Under the new organization, The company will begin operating under a new name later this year. The company will continue to manage CNL Tower I and Tower II at CNL Center at City Commons in downtown Orlando. Source: Orlando Business Journal

CNL Commercial Real Estate to spin off from parent company is republished from Stephen Bounsanga Stirling Sotheby's