Merger Creates One of the Largest Real Estate Franchise in Northern America
Posted in Alternative Business Models By Stefan Swanepoel, Wednesday, November 11, 2009.Barely a year ago the real estate industry was stunned when Canadian-based Brookfield Residential Property Services (Brookfield RPS), a division of Brookfield Asset Management Inc. (Brookfield), and owner of Royal LePage, the largest Canadian residential real estate company, acquired GMAC Real Estate. With the departure of CEO John Bearden and a pending name change imminent, many labeled the GMAC franchise as yesterday’s news.
What a difference a year has made.
Announcing their second large acquisition today, Brookfield RPS has now also the owner of Real Living Network Services, a subsidiary of Real Living Inc. Combining the two companies creates one of America’s leading residential real estate franchises with more than $20 billion in annual home sales and an estimated 30,000 agents.
Although that in its own is huge news (and the largest real estate brokerage acquisition of the year) it is the merging of the two and the rebranding of the whole as Real Living that is electrifying.
The reason is that Ohio-based Real Living is a national award-winning real estate brand known for its innovation, customer service and a culture of partnership and collaboration within its network. Last year I even named Real Living as the “Most Promising New National Brand” in my Swanepoel TRENDS Report while Entrepreneur Magazine listed them as one of the Top 50 New Franchises.
Exciting times for newly appointed President Harley E. Rouda, Jr.
What are your thought? Has yesterday’s news turned into tomorrow’s future?
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Submitted by Emily Medvec on November 11, 2009 - 7:22am.
Interesting development combined with your insights on the changing landscape of real estate in the world of national brands. At present, Real Living Inc is not yet one of the national real estate brands rooted in New Mexico.
I will keep an eye out and let you know what I see happening.
Emily Medvec,Broker
Santa Fe Properties
1000 Paseo de Peralta
Santa Fe, NM 87501
Best Anytime Cell 505.660.4541
www.emilymedvec.com
www.buysantafehomes.com
Submitted by Susie Blackmon on November 11, 2009 - 7:41am.
There are so many things happening in real estate right now! I'm curious to know more about the Real Living business model and how they, hopefully, might be different from many of the other big-box models.
Thank you for breaking the news.
Susie Blackmon
http://www.google.com/profiles/Susie28751#about
Submitted by Stefan Swanepoel on November 11, 2009 - 10:53am.
Emily,
I am sure you will see them soon - with Brookfields, Royal LePAge, GMAC and RealLiving under one roof, there is a lot of horsepower.
Keep me posted. Thanks.
Stefan
Author: Swanepoel TRENDS Report
Author: Swanepoel SOCIAL MEDIA Report
Submitted by Stefan Swanepoel on November 11, 2009 - 10:56am.
Right you are Susie - The last 5 days have been the biggest in real estate brokerage history for a long while - many many changes if you think about the Tax Credit, Cyberhomes, NAR, GMAC, Google....more
More in my next Trends Report coming out February.
Stefan
Author: Swanepoel TRENDS Report
Author: Swanepoel SOCIAL MEDIA Report
Submitted by Ron Seigel on November 11, 2009 - 11:06am.
Ron & Alexandra Seigel, Partners
Napa Consultants, International
www.NapaConsultants.com
Interesting news given that Brookfield will also be taking on debt in the form of long term leases on the various offices, as well as other fixed expenses associated with running an office. On the leading edge these days are firms which are running virtual offices and have reduced their expenses to a mere $600 a month, this is a trend that will take hold sooner than later. On their last purchase of a GMAC division (Pacific Union an established well thought of luxury firm in Northern California experienced a significant agent flight to Alain Pinel). Brookfield ended up selling it to Morgan Lane a Napa California based boutique firm, and they merged the brand back to Pacific Union!
Our thoughts is that this is not tomorrow's future! This is old world thinking of amassing in a world where shelf space exists niche d on the Internet!
Submitted by Larry Whited Sr. on November 11, 2009 - 12:14pm.
Insanity = doing the same thing over and over and expecting deferent results. This is just more of last centuries dinosaur RE biz model in a new wrapper. Die allready!
Larry A. Whited, Sr., CRB, CRS, GRI
President & Founder
www.maxUnet.com & www.WebMLS.net
A Virtual Real Estate Franchise System
** We will sell your home for as little as 2% + $500. Includes full service and MLS **
P.O. Box 757
West Chester Ohio
Submitted by Scott Nelson on November 11, 2009 - 12:38pm.
One question is where is Northern America?
Submitted by Scott Nelson on November 11, 2009 - 12:39pm.
One question is where is Northern America?
Submitted by Stefan Swanepoel on November 11, 2009 - 4:15pm.
Ron, but I think that is what is happening here. Maybe too slow for your enjoyment but it is a step in the right direction. Real Living is a very technology savvy company with a strong online brand and some of the most advanced thinking in favor of technology in real estate....and that's exactly what GMAC Real Estate needs (plus of course they needed a brand as GMAC as a brand had to be phased out subsequent to their purchase by Brookfield RPS).
Submitted by Stefan Swanepoel on November 11, 2009 - 4:20pm.
Larry, looking at the parent company it's not insanity - they took positive steps to re-energize their existing franchise network, acquired a great brand that they had to do to replace their the GMAC name they had to legally do, acquired good US real estate leadership in the process that they did not have and gained a much stronger technology system and vision.
All-in-all a good move by Brookfield RPS.
Submitted by Stefan Swanepoel on November 11, 2009 - 4:28pm.
Scott, Northern America according to Wikipedia is the northenmost region of the Americas. It is a widely used term when referring to the United States and Canada. Brookfield RPS is based in Canada, owns and operates the largest Canadian based residential real estate franchises and as well as GMAC, one of the Top 10 largest US-based real estate franchises. Northern America seemed to be an appropriate word to describe the markets they serve.