For Submission to San Fernando Valley Business Journal (634 Words) June 1998 Issue (Deadline May 22) Contact: Nadene Bristow/Candice Rosales (310) 445-7722 GRUBB & ELLIS EMERGES AS LEADING PROPERTY MANAGEMENT PLAYER by James A. Rosten With a single stroke of the pen in April, Grubb & Ellis Management Services, Inc. became one of the largest managers of retail property in the San Fernando Valley. That pen stroke completed the acquisition of La Cagnina & Associates, Inc., one of the most active property managers in the Valley’s retail market, by Grubb & Ellis Management Services. “The Valley is one of the leading retail markets in Southern California,” said James Rosten, President/Western Region, Grubb & Ellis Management Services, in a recent interview about the purchase. “The strength of La Cagnina in this market and throughout Southern California makes it a highly strategic acquisition.” Among the well known Valley-area shopping centers to be managed by Grubb & Ellis Management Services are Granada Village, VictorVille Town Center, Valencia Marketplace and Corona Market Place. Although sometimes overlooked in the property management market, the retail sector is one of the most promising areas in the extremely competitive property management industry, according to Rosten. “Retail is one of the big growth areas in property management,” said Rosten. “Part of that growth will come from national firms like Grubb & Ellis that can provide property management and a full array of real estate services to national owners.” The transaction added 5 million square feet of primarily retail space in the Valley, giving Grubb & Ellis Management Services a total of 15 million square feet under management in the Western Region. Victor S. La Cagnina, a 32-year-veteran of the shopping center management industry, started out in property management by working for Teachers Insurance and Annuity Association before starting his company in 1975. Since that time, the Encino-based firm has provided property management, leasing and sales and construction management to clients throughout California. The firm has offices in Valencia, Palm Desert, Redlands, Concord, Sacramento and Half Moon Bay. “Teaming with Grubb & Ellis allowed us to join an organization with tremendous volume, and tremendous ability to market services, in an environment in which only larger, well-capitalized property managers are going to survive and prosper,” said La Cagnina, who has become Director of Retail, Western Region. The La Cagnina purchase complements another recent acquisition by Grubb & Ellis Management Services. Also in April, the company purchased Crane Realty & Management Company Inc., an Irvine-based property manager with a portfolio of 3.5 million square feet of commercial property in Southern California. Drawing upon a nationwide pool of talent and resources, Grubb & Ellis Management Services currently has 115 million feet of commercial property under management in the United States. According to Rosten, “We have positioned ourselves to respond to our clients’ demand for enhanced efficiency and value, through the synergy of a full array of high-quality management and leasing services. Firms that have long relied on our expertise in leasing and sales can expect the same level of service from our experienced management services professionals.” Rosten expects to grow the Western region portfolio to 25 million square feet by the end of 1998, while maintaining the current “manager per square foot ratio,” which he believes is the formula for optimum client service. Grubb & Ellis Management Services is a subsidiary of Grubb & Ellis Company which provides integrated property and facilities management services to more than 200 corporate and institutional clients nationwide. The firm and its affiliates currently employ 4,000 real estate professionals in 85 markets nationally. In addition to property management, the firm is actively marketing its capabilities in facilities management, asset management, leasing, engineering services, construction services, lease administration and business services. ### James A. Rosten is President, Western Region for Grubb & Ellis Management Services, Inc.