June 21, 2013 Category: Commercial Real Estate
Successful businesses are always looking for ways to expand their market and potential customer base. One way to do this is to merge with another company which may have resources that would be complimentary with the business. Bradley Co., a major commercial real estate firm in Michigan, recently announced that it has decided to take this route and merge with NAI Harding Dahm, another real estate firm.
The newly merged company will provide employment to approximately 250 people. About 200 people work at Bradley while over 50 people are employed at Harding Dahm. The merged company will be responsible for managing over 7 million square feet of total commercial real estate. This amount includes over 2,300 apartment and condominium units.
Executives involved in the merger stated that Harding Dahm will enable Bradley to expand its business beyond its current geographic market share. Bradley had to make some key changes to its business structure before being able to finalize the deal for the merger. It first had to combine the residential and commercial parts of its operations into a separate brand in order to maintain compliance with applicable laws specific to the real estate industry.
This case illustrates how important it is to understand the laws regulating the commercial real estate industry in Michigan. Not only is the merging of real estate firms regulated by numerous rules, even merely the purchase or sale of a commercial property is subject to scrutiny by regulating authorities. Knowledge of these rules can help to avoid steep fines and possible civil lawsuits that can crop up in the event of violations.
Source: South Bend Tribune, ” Bradley expanding its area ,” Kevin Allen, June 6, 2013