SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC
20549
________________________________________
FORM 8-K
________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: April 14, 1997
(Date of earliest event reported)
INSIGNIA FINANCIAL GROUP, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-19066 13-3591193
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification
Number)
One Insignia Financial Plaza
Post Office Box 1089
Greenville, South Carolina 29602
(Address of Principal Executive Office)
Registrant's telephone number, including area code: (864) 239-1000
______________________________________
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Item 5. Other Events
Insignia Commercial Group, Inc. announced a major expansion of its
operations in Phoenix, with the establishment of a full-service office serving
the needs of space users, investors and property owners throughout Arizona.
Item 7. Financial Statement and Exhibits
(c) Exhibits
Exhibit No.
99.1 Press Release dated April 14, 1997
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
INSIGNIA FINANCIAL GROUP, INC.
By: /s/ John K. Lines
--------------------------------
John K. Lines
General Counsel
Date: April 28, 1997
For Immediate Release Contact: Stephen B. Siegel
(212) 984-6535
James A. Aston
(864) 239-1661
Steven N. Corney
(602) 912-1700
INSIGNIA COMMERCIAL SHARPLY EXPANDS PHOENIX OPERATIONS
Full-Service Office to Conduct Business As Insignia/ESG
Greenville, SC, April 14, 1997 -- Insignia Commercial Group, Inc. today
announced a major expansion of its operations in Phoenix, with the establishment
of a full-service office serving the needs of space users, investors and
property owners throughout Arizona.
A contingent of 30 executives and brokers, all of whom were previously
associated with Koll Real Estate Services, has joined Insignia Commercial
Group's existing operations in Phoenix. The new, expanded office will conduct
business as Insignia/ESG, Insignia Commercial's brokerage subsidiary.
Both Insignia Commercial Group and Insignia/ESG are subsidiaries of
Insignia Financial Group, Inc. (NYSE:IFS), one of the nation's leading
fully-integrated real estate service providers. Already the largest manager of
residential real estate in the country, Insignia has, in recent years, set its
sights on substantially growing its commercial operations in key markets across
the country.
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Stephen B. Siegel, president of Insignia Commercial Group, called the
addition of the former Koll contingent a "watershed event" in the company's
expansion strategy. "We've been joined by some of the premier real estate
professionals in the Phoenix area, and they instantly provide us with critical
mass in this high-growth, Sun Belt market," he said. "We endeavor to be a leader
in every market that we serve; we've accomplished that objective in Phoenix."
Steven Corney, CPM, previously president of Koll's Southwest operations,
has assumed responsibility for all of Insignia/ESG's operations in Arizona, as
managing director. John Wyss, previously executive vice president and manager of
Koll's Arizona brokerage operations, has assumed responsibility for
Insignia/ESG's brokerage operations in Arizona.
The Koll contingent joining Insignia/ESG is long established within the
Phoenix marketplace. They formed the nucleus of CBS Investment Realty, Inc., a
highly successful local brokerage and management company that was acquired by
Koll in 1995.
"This is a truly banner day for us," said Mr. Corney. "Insignia is one of
the pre- eminent property service organizations in real estate today and -- in
Insignia/ESG -- we are joining forces with a name that is recognized from coast
to coast for its sophisticated brokerage methodologies."
"We feel that our clients will benefit immeasurably from the enhanced
services that we will now be able to provide them," he added.
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Mr. Corney, Mr. Wyss and their colleagues are already among the leading
figures in Arizona real estate. In recent years, they have concluded
transactions such as the re- positioning and sale of the Camelback Lakes office
complex for $27 million, and the disposition of Camelview Plaza Mall for $20
million.
"We were thrilled when Steve Corney and John Wyss contacted us," said
Steven Willmore, CPM, Insignia's managing director of San Diego/Arizona. "They
add considerable firepower to our Arizona operations and we are pleased that
they've elected to join the Insignia team."
Another former Koll executive, Tom Shelton, CPM, has also joined Insignia
in Phoenix. Mr. Shelton, who served as director of Koll's 8,000-unit national
residential operations, has assumed responsibility for all of Insignia
Residential Group's residential fee management operations in Arizona. Insignia's
commercial property management operations in Arizona will continue to be
directed by Donald Mudd, CPM.
Insignia Commercial has an existing management and leasing agency portfolio
totaling 3 million sq. ft. of office, industrial and retail space in the Phoenix
area. Its Phoenix portfolio includes such high-profile properties as Norwest
Tower, a 357,500 sq. ft. office building, and Great American Tower, a 334,600
sq. ft. office building. The existing property services portfolio is expected to
increase sharply with the establishment of the full-service office.
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Insignia has a commercial real estate portfolio totaling 47 million sq. ft.
in its Western Region, encompassing Arizona, California, Washington and Oregon,
and nationally, its property services portfolio spans 149 million sq. ft. of
office, retail and industrial space.
A new full-service office has been established at Camelback Lakes Corporate
Center, 2730 East Camelback Road, Suite 200, Phoenix, AZ 85016. Phone: 602-912-
1700.
The Arizona expansion is the fourth step taken this year in Insignia's
national commercial strategy. On March 3, Insignia announced the acquisition of
Rostenberg- Doern Company, Inc., a leading brokerage and management firm in the
northern suburbs of New York City, and HMB Property Services, Inc., a service
provider that provides Insignia with long-term management rights with respect to
approximately 1.1 million sq. ft. of prime office space in the Denver market
place.
On April 1, Insignia announced that it had completed the acquisition of
Frain, Camins & Swartchild, Inc., a leading office, retail and industrial
brokerage and management company in Chicago. The FC&S acquisition augmented
Insignia's property services portfolio by more than 10 million sq. ft.
On an annualized basis, it is expected that the three acquisitions and the
Arizona expansion should add more than $21 million to Insignia's revenues from
commercial real estate operations.
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Insignia Financial Group, Inc., a publicly-held company listed on the New
York Stock Exchange, posted 1996 revenues of $227 million, up 84.5% from a year
earlier, and its net EBITDA -- a measure of profitability -- improved by 94% to
$47.7 million.
With corporate headquarters in Greenville, SC, Insignia Financial Group,
Inc. is a fully-integrated real estate services company. Insignia is the largest
manager of multifamily residential properties in the United States and is also
among the largest managers of commercial properties.
Insignia Financial Group, Inc. commenced operations in December 1990 and
provides services for approximately 260,000 residential units (including
cooperative and condominium units) and in excess of 149 million sq. ft. of
retail, commercial and industrial space.
