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: January 7, 1998
(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
________________________________________________
<PAGE>
Item 5. Other Events
On January 7, 1998, Insignia Financial Group, Inc. (Insignia), completed
the purchase of rights to perform property management, leasing, and construction
supervision services for approximately 4.1 million square feet of commercial
real estate located primarily in the greater Chicago area. The rights were
acquired from Cohen Financial ("Cohen"), a Chicago based real estate investment
banking firm, for an undisclosed price. The portfolio for which these rights
were obtained consists of properties, including industrial real estate, office
buildings and retail centers, either owned or controlled by Cohen, its managed
funds or affiliates, as well as those owned by majority institutions for whom
Insignia will provide services on a third party basis.
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit No.
99.1 Press Release dated January 8, 1998
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to the signed on its behalf by the
undersigned hereunto duly authorized.
INSIGNIA FINANCIAL GROUP, INC.
By: /s/James A. Aston
---------------------
James A. Aston
Office of the Chairman, Chief Financial Officer
Date: January 22, 1998
FOR IMMEDIATE RELEASE CONTACT: Steve Iaco
Director, Corporate Communications
Insignia Financial Group, Inc.
(212) 984-6535
INSIGNIA FINANCIAL GROUP ACQUIRES RIGHTS TO SERVICE 4 MILLION SQ.
FT. CHICAGO AREA PORTFOLIO FROM COHEN FINANCIAL
Acquisition Accelerates Growth of Insignia's Midwest Management Portfolio;
Allows Cohen to Focus on Expansion of Its Core Investment Banking Operations
Greenville, South Carolina., January 8, 1998 -- Insignia Financial Group,
Inc. (NYSE: IFS) today announced that it has acquired the rights to perform
property management, leasing and construction supervision services for 4.1
million sq. ft. of commercial real estate located primarily in the greater
Chicago area. The rights have been acquired from Cohen Financial for an
undisclosed price.
Cohen, a Chicago-based real estate investment banking firm, has out-sourced
the management of its properties in order to focus on its core business of
serving the needs of users and providers of real estate capital through its
principal, agency and advisory operations. During 1997, the firm completed in
excess of $1.2 billion of capital markets transactions and has been responsible
for in excess of $800 million of advisory-related assignments.
The Cohen acquisition further extends Insignia's growing reach in the
commercial real estate market in Chicago. The company first entered this market
in March when it acquired Frain, Camins & Swartchild (now operating as
Insignia/FC&S), a leading local brokerage and management company. The
Chicago-area property services portfolio has grown significantly, with new
assignments totaling more than 7 million sq. ft.
Insignia/FC&S's property services portfolio now totals in excess of 16
million sq. ft., ranking the firm among the largest property service providers
in the Chicago area.
The Cohen portfolio consists of properties either owned or controlled by
Cohen, its managed funds or affiliates, as well as those owned by major
institutions for whom Insignia will provide services on a third-party basis. The
portfolio includes industrial real estate, office buildings and retail centers.
"We have become the service provider of choice in the Chicago area," said
Harvey Camins, president of Insignia/FC&S. "Property owners are turning to us
increasingly due to our knowledge of the local market, strong technical skills
and close compatibility with the other Insignia offices around the country."
The Cohen acquisition also enhances Insignia's position in industrial real
estate, a segment that has been targeted for significant expansion. Insignia now
manages more than 6 million sq. ft. of industrial space in Chicago and more than
40 million sq. ft. in the U.S. The firm is also one of the area's leading
industrial brokers, having consummated industrial sales and leasing transactions
in Chicago totaling in excess of 10 million sq. ft. during 1997.
"The Cohen transaction enables us to cement our relationship with key
institutional clients that Insignia currently services in other regions of the
country, and strengthen our ties with Cohen Financial, one of the leading
investors in the Chicago marketplace," Mr. Camins added.
"This transaction is consistent with our objectives of concentrating our
firm's resources in the principal, agency and advisory activities of our
business," said Jack Cohen, president of Cohen Financial. "These have been
high-growth components of our overall business, and we are focused on even
stronger growth in the future. We were looking for a quality firm that could
assume the responsibility for operating our properties on a day-to-day basis,
and believe we've found that firm in Insignia."
Cohen Financial is a Chicago-based real estate investment banking firm
specializing in serving the needs of users and providers of real estate capital
nationwide. Through its principal, agency and advisory operations, the firm
engages in debt and equity placement, direct investment, investment management,
investment brokerage, strategic agency and transaction advisory services, asset
management and loan administration.
Certain items discussed in this press release may contain forward-looking
statements within the meaning of the Private Securities Reform Act of 1995 (the
"Reform Act") and as such, may involve known and unknown risks, uncertainties
and other factors which may cause actual results, performance or achievements to
differ materially from the results, performance or achievements expressed or
implied by such forward-looking statements, including a change in the climate
for acquisitions the Company has been making, a downturn in the projected
business of the acquired portfolio or the Company's other business units. Such
forward-looking statements speak only as of the date of this press release. The
Company expressly disclaims any obligation or undertaking to release publicly
any updates or revisions to any forward-looking statements contained herein to
reflect any change in the Company's expectations with regard thereto or any
change in events, conditions or circumstances on which any such statement is
based.
Insignia Financial Group, Inc. is a fully-integrated real estate services
company based in Greenville, SC. Insignia is the largest manager of multifamily
residential properties in the United States and is among the largest managers of
commercial properties. Since commencing operations in December 1990, Insignia
has grown to provide property and/or asset management services for approximately
2,600 properties, including approximately 290,000 residential units and 160
million sq. ft. of commercial space, in over 500 cities in 48 states and
overseas.