Insignia Financial Group
Encyclopedia
Insignia Financial Group was a Delaware corporation
, headquartered in Greenville, South Carolina
, engaged in the aggregation, management
, and disposition
of multifamily apartment complexes. Founded by Andrew L. Farkas with an initial capitalization of $5.5 million provided by an investor syndicate
organized by Farkas, Insignia consummated the acquisition of substantially all of the assets of U.S. Shelter Corporation, a multifamily real estate
syndicator, on December 31, 1990. Insignia was taken public in 1991 by a syndicate led by Lehman Brothers
and Dillon Read & Company. Its stock was listed on the NYSE under the symbol IFG.
Under Farkas' leadership, Insignia grew to be the largest owner and operator of multifamily housing in the free world. Insignia was known for innovation; it grew and prospered by creatively adapting sophisticated mergers, acquisitions
, and secularization
techniques to its industry. Insignia acquired portfolios of general partnership
interests in tax shelter
s owning often distressed multifamily and commercial property
from the original syndicators, and employed a variety of techniques to extract value from these often moribund tax shelters. Insignia consummated 39 separate acquisitions of general partnership interest portfolios and, later in its history, commercial real estate operations. Insignia was among the first companies to use tender offers to increase its ownership of limited partnerships owning multifamily property. Insignia refinanced substantial portions of its multifamily portfolio in bulk though the first two non cross collateralized real estate mortgage investment conduit
s, sponsored by Lehman Brothers, in 1992 and 1993.
Insignia sold its multifamily business to Apartment Investment and Management Company for $1.4 billion in 1999. The remainder of Insignia was sold for approximately $120 million to C.B. Richard Ellis in 2001.
Delaware corporation
The Delaware General Corporation Law is the statute governing corporate law in the state of Delaware. Delaware is well known as a corporate haven. Over 50% of U.S...
, headquartered in Greenville, South Carolina
Greenville, South Carolina
-Law and government:The city of Greenville adopted the Council-Manager form of municipal government in 1976.-History:The area was part of the Cherokee Nation's protected grounds after the Treaty of 1763, which ended the French and Indian War. No White man was allowed to enter, though some families...
, engaged in the aggregation, management
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
, and disposition
Disposition
A disposition is a habit, a preparation, a state of readiness, or a tendency to act in a specified way.The terms dispositional belief and occurrent belief refer, in the former case, to a belief that is held in the mind but not currently being considered, and in the latter case, to a belief that is...
of multifamily apartment complexes. Founded by Andrew L. Farkas with an initial capitalization of $5.5 million provided by an investor syndicate
Syndicate
A syndicate is a self-organizing group of individuals, companies or entities formed to transact some specific business, or to promote a common interest or in the case of criminals, to engage in organized crime...
organized by Farkas, Insignia consummated the acquisition of substantially all of the assets of U.S. Shelter Corporation, a multifamily real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
syndicator, on December 31, 1990. Insignia was taken public in 1991 by a syndicate led by Lehman Brothers
Lehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...
and Dillon Read & Company. Its stock was listed on the NYSE under the symbol IFG.
Under Farkas' leadership, Insignia grew to be the largest owner and operator of multifamily housing in the free world. Insignia was known for innovation; it grew and prospered by creatively adapting sophisticated mergers, acquisitions
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
, and secularization
Secularization
Secularization is the transformation of a society from close identification with religious values and institutions toward non-religious values and secular institutions...
techniques to its industry. Insignia acquired portfolios of general partnership
Partnership
A partnership is an arrangement where parties agree to cooperate to advance their mutual interests.Since humans are social beings, partnerships between individuals, businesses, interest-based organizations, schools, governments, and varied combinations thereof, have always been and remain commonplace...
interests in tax shelter
Tax shelter
Tax shelters are any method of reducing taxable income resulting in a reduction of the payments to tax collecting entities, including state and federal governments...
s owning often distressed multifamily and commercial property
Commercial property
The term commercial property refers to buildings or land intended to generate a profit, either from capital gain or rental income.-Definition:...
from the original syndicators, and employed a variety of techniques to extract value from these often moribund tax shelters. Insignia consummated 39 separate acquisitions of general partnership interest portfolios and, later in its history, commercial real estate operations. Insignia was among the first companies to use tender offers to increase its ownership of limited partnerships owning multifamily property. Insignia refinanced substantial portions of its multifamily portfolio in bulk though the first two non cross collateralized real estate mortgage investment conduit
Real Estate Mortgage Investment Conduit
Real Estate Mortgage Investment Conduits, or "REMICs," are a type of special purpose vehicle used for the pooling of mortgage loans and issuance of mortgage-backed securities...
s, sponsored by Lehman Brothers, in 1992 and 1993.
Insignia sold its multifamily business to Apartment Investment and Management Company for $1.4 billion in 1999. The remainder of Insignia was sold for approximately $120 million to C.B. Richard Ellis in 2001.