CoStar Group to Purchase a Commercial Real Estate Platform

May 13, 2020
Share this Post: 

The real estate industry is seeing a powershift as larger companies swoop in to acquire smaller companies that have failed to come up with a way around the problems that have arisen from the coronavirus pandemic. Other companies are siphoning off parts of themselves to other companies in hopes of getting a little bit of financial relief in the meantime. 

CoStar Group Inc., which has been doing fairly well, all things considered, is purchasing the commercial real estate arm of Ten-X LLC for $190 million. CoStar agreed to the terms to help increase its role in the commercial real estate sector which has seen nothing but obstacles since the virus began its rampage. 

CoStar’s CEO, Andy Florance, expects “the volume of distressed properties coming to the market will surge,” and that CoStar is in the perfect position to meet those demands.

“We believe that our products remain mission-critical to the vast majority of our clients even as they deal with pandemic driven market disruptions.”

This is why CoStar chose Ten-X’s commercial real estate division. Ten-X was derived from, a platform meant to sell foreclosed homes

Florance said:

“Ten-X and CoStar plan to create a new end-to-end commercial real estate platform."

The transaction is being facilitated by private equity firm, Thomas H. Lee Partners LP, which has owned a controlling interest in Ten-X for the last three years. 

CoStar expects to close the acquisition in the third quarter of this year.

CoStar Group recently held a conference call to share the current financial standings of the company, which yielding good news. The company is in a good position to make it out of the pandemic unharmed. This acquisition is likely not the last.

May 13, 2020
Victoria has been writing about property portals and marketplace sites for Online Marketplaces for over 3 years. She is also our resident artist and is responsible for all of the infographic content on the site.

Subscribe to our mailing list to get news updates!

Enter your email address and get updates from Online Marketplaces.

Related News

Board Room
Zoopla Creates Agent Advisory Board to Give Customers a Say on Lettings Policy

British #2 portal Zoopla has launched a Lettings Advisory Board made up mostly of its agent customers as it looks...

Read More
Spanish Proptech Firms
Housfy Gets Funding and Casavo Expands as Spanish PropTech Market Heats Up

The Spanish PropTech market is heating up with two prominent companies in the market announcing positive news this week. Online...

Read More
Leboncoin Op 1
LeBonCoin Launches New Offering to Help Agents Win Sales Instructions

The French classifieds market leader LeBonCoin has today announced the launch of a new package for real estate agents. The...

Read More
Domain Data
Domain Acquires Data Services Provider Insight Data Solutions

Australian portal company Domain has today announced that it has agreed to acquire data services provider Insight Data Solutions (IDS)....

Read More

Popular News