Big Manhattan broker closing its doors
Coldwell Banker Hunt Kennedy's roots date to 1988
By Matt Carter, Wednesday, June 3, 2009.
Flickr photo by Seamus Murray.Manhattan brokerage Coldwell Banker Hunt Kennedy has closed its doors, with about 90 percent of its 200 agents moving to Corcoran Group Inc. and Sotheby's International Realty Inc., company co-founder and Chief Executive Officer David Michonski said.
Michonski said the brokerage -- which has roots in Manhattan going back more than 20 years -- was a casualty of the financial industry meltdown. Coldwell Banker Hunt Kennedy saw the $22 million in revenue generated in 2007 decline by 35 percent last year, and another 50 percent this year, he said.
"The rest of the country has been in real estate recession for several years," Michonski said. "We entered a meltdown here starting last September that has been relentless."
The firm's impending closure was first reported in a trade publication, The Real Deal, which cited anonymous sources and a leaked companywide memo.
Michonski dismissed as "wildly inaccurate" reports that the company is $12 million in debt and would be sold.
While the brokerage has some debts, he said, "nobody in their right mind would loan $12 million to a real estate brokerage company that only has $22 million in revenue."
"We're closing because of the market and business conditions, and because we don't want to incur more debt," Michonski said.
The brokerage is holding a farewell party today for about 250 employees, he said. Before it was disabled today, the company Web site listed contact information for 197 agents.
Online publication Crain's New York Business reported that other Manhattan brokerages, including Halstead Property and Warburg Realty Partnership, have been recruiting Coldwell Banker Hunt Kennedy brokers.
But Michonski said most of the company's agents are making what he described as an "orderly transition" to two brokerages that, like the Coldwell Banker brand, are under the umbrella of Realogy Corp.
He said most of Coldwell Banker Hunt Kennedy's agents are following Chief Operating Officer JoAnne Kennedy to Corcoran Group. ...CONTINUED
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Submitted by aaron williams on June 3, 2009 - 12:03pm.
I think this is a sad moment in the real estate business. I also think real estate agencies have to venture into other parts of the real estate business to stay profitable. I just don't understand why they wouldn't venture out in doing some speaking about short sales or have education classes on maybe even doing some managing or offer consulting services on advice on what to buy for commercial companies.
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Submitted by Stefan Swanepoel on June 3, 2009 - 12:21pm.
Sorry David.
The meltdown has hit so many people so hard. I am regret that you had to be one of them as well.
Good luck with whatever new venture you select.
Stefan Swanepoel
Author: Swanepoel TRENDS Report
www.RETrends.com
Submitted by Doug Francis on June 3, 2009 - 12:29pm.
Sounds like a nice, easy shut down of the operation. But, I would hate to trade places with the agent who has the commission coming from the settlement on that Upper West Side brownstone closing June 25th!
Doug Francis
RE/MAX Presidential in Fairfax, Virginia
http://www.dougfrancishomes.com
Submitted by Robert A. Hulme on June 3, 2009 - 12:43pm.
This will happen to many more Brokerages if they don't change the way they do business. Virtual offices are the future, the Brick and Mortar model of the past will eventually disappear.
Robert A. Hulme
Realtor, GRI, e-PRO
Utah Select Realty
Loan Officer
Mortgage Xpress
www.ParkCityUtahRealEstate.ws
www.DeerValleyRealEstate.ws
Submitted by michael Espiritu on June 3, 2009 - 3:08pm.
I disagree with Robert regarding that brick and mortar offices will disappear. I think if the brick and mortar offices don't change their business model then we will see a lot more go by the wayside.
I am a real estate broker that is part of a very successful office in a high traffic area in SoCal. A professional office that clients can come to and go over paperwork, etc. is still a valid component of a successful brokerage.
Our office has graduating desk fees but 100% (zero split)commission is available and most choose to pay the fee in order to get the full commission amount.
As a referral partner w/ Redfin.com I also see the tremendous benefits of working with very tech savvy clients who choose to work with me because of reviews by former clients and accountablity of the agent/ broker simply through on-line media.
I think there are benefits to both on-line brokerages and brick and mortar if done correctly.
Michael Espiritu
Broker
SoCal
Submitted by Paul Francis, CRS on June 3, 2009 - 3:10pm.
Several brokerages in Las Vegas went through all of this well over a year ago. While inconvenient as a agent to have to change all of our marketing materials... it's certainly not the end of the world.
The next changes to take place in that market are the number of agents that get out of the business or take part time jobs. Follow what happened in Las Vegas, Arizona, California, Florida and learn.
As a certain Presidential Campaign slogan from years ago coined,
"It's the economy, stupid."
Or... business has slowed and there is not enough business to keep everybody around... (Unless you bail them out with borrowed money. But.. even that is a temporary solution to the inevitable.)
Hmmm... Sometime back I remember hearing something along the lines "It will never happen here"...
Anybody who still thinks that is in for a rude awakening.
On the flip side... if you make it through...you'll be a far superior real estate agent. No doubt about it...
Paul Francis, CRS
Prudential Americana Group - REALTORS
www.LasVegasRealEstateHome.com
702.592.3058
Submitted by Sal Antsipenka on June 3, 2009 - 6:24pm.
I ma kind of happy to say that things are turning around in Naples, Florida. Sales are definitely up and buyers are coming in numbers now. I experience a very good result with my international property buyer marketing campaigns in Europe and US buyer leads are coming steadily.
There is definitely a light at the end of the tunnel. My marketing campaign for Russian and Eastern European home buyers produced amaizing results. I am not speaking for Florida yet, but Naples is definitely coming back. By the way Cape Coral in Lee county has a real estate rush again. 3-4 offers on any new listing within several hours. Not bad.
Sal Antsipenka
Century 21 Mike Miller Realty
Naples, Florida
http://www.naplesrealestateseller.com
International RealEstate Buyer Leads
http://www.realestatefair.net
Submitted by Douglas Rebert on June 4, 2009 - 7:35pm.
I have had the pleasure to know and do business with David and JoAnne.
One can make commentary on your local real estate market. In this instance it may not be that significant.
Hunt Kennedy represented true professionalism.
We can debate the ecomomy, bricks and mortar or whatever. Foremost, we need to celebrate that these folks stood for the professional ideals that we should all stand for.
I encourage David and JoAnne to continue to be Realtor leaders. If they make that choice, we will all benefit.