CoStar Group to Purchase a Commercial Real Estate Platform

May 13, 2020

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 auction.com, 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 the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

People Roundup 28Mar
People Roundup: Aviv Group, Pisos.com, Kleinanzeigen, REA India, Anjuke

There have been several high profile C-suite moves in this week's People Roundup. We'll start in Europe...   Europe: Aviv...

Read More
Product Update 2025Mar28 1
Product and Services Roundup: Zoopla, ViewIt

This week's Product Roundup starts in the UK, where it's all about Zoopla...   UK: Zoopla's MyHome product is used...

Read More
Ten Questions With Hiizzy 2
Ten Questions with Allan Wood and Lewis Buckley, Co-Founders at Hiizzy

"In the UK, a £500,000 sale at 1% is a commission of £5,000. With Hiizzy, you will not pay more...

Read More
Nar 1 3
NAR Amends Clear Cooperation Policy After Months of Speculation

The National Association of Realtors (NAR) has amended the terms of its Clear Cooperation Policy (CCP) after months of speculation...

Read More

Editor's Pick