BrokerageIndustry News

Real Living, Prudential Real Estate franchises sold

HomeServices of America to be majority owner of joint venture

Editor’s note: This story has been updated to correct that Brookfield Asset Managment remains a partner in a a joint venture with HomeServices of America Inc. that will operate the Prudential Real Estate and Real Living brands, along with a new future brand, Berkshire Hathaway HomeServices. Also, Brookfield’s relocation business, Brookfield Global Relocation Services, will remain wholly owned by Brookfield. See latest story,"Prudential, Real Living brands to be Berkshire Hathaway HomeServices."  

Berkshire Hathaway Inc. subsidiary HomeServices of America Inc. has acquired a majority interest in Brookfield Asset Management’s U.S. franchise brands, Real Living and Prudential Real Estate.

Brookfield, a Canadian-based franchisor that made a dramatic entry into the U.S. market in 2008 by acquiring GMAC Real Estate and merging the company into Real Living, acquired Prudential Real Estate and Relocation Services in December for $110 million. Brookfield’s relocation business, Brookfield Global Relocation Services, will remain wholly owned by Brookfield.

Minneapolis-based HomeServices is the nation’s second-largest brokerage firm, after Realogy Corp.’s NRT LLC. Although most of the 26 brokerages it owns around the country are not affiliated with a franchise brand, the company owns nine brokerages that are affiliated with Prudential Real Estate.

As first reported by the blog Columbus Biz Insider, Real Living founder and president Harley Rouda Jr. will take over as CEO of Trident Holdings Inc., the parent company of HER Realty, the brokerage founded by his late father, Harley Rouda Sr.

Rouda confirmed the details of that report, and told Inman News that HER Realty does not plan to be affiliated with Real Living or Prudential Real Estate in the future.

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Representatives of Brookfield RPS did not respond to a request for comment. A spokesman for HomeServices said the company would provide information Tuesday morning.

HomeServices moved into the Pacific Northwest market in February by acquiring Portland, Ore.-based Prudential Northwest Properties, which has nearly 500 agents who handled nearly $900 million in sales in Oregon and Washington in 2011.

The company expanded its presence in the region in April by acquiring Prudential Northwest Realty Associates, a Seattle-based brokerage with more than 350 agents that handled more than $740 million in sales last year.

HomeServcies also established a foothold in the Northeast in April with the acquisition of Prudential Connecticut Realty, whose 1,400 sales associates handled more than $2.5 billion in sales in 2011, working out of 50 offices located in markets across the state.

The six other Home Services brokerages affiliated with Prudential are Prudential California Realty (Southern California), Prudential First Realty (Iowa), Prudential Rhode Island Realty, Prudential Carolinas Realty, Prudential York Simpson Underwood Realty (North Carolina) and Prudential Yost and Little Realty (North Carolina).

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