Marking its fourth Golden State market-share grab within the last year, San Francisco-based real estate giant Pacific Union is acquiring a majority stake in Gibson International, a luxury Los Angeles boutique, effective in the first quarter of 2018.
Since 2015 Pacific Union has held a controlling 35 percent stake in Gibson, co-founded by Scott Gibson and Pat Heller in 2008 which it has now upped to 55 percent. The firm, due to close around $1 billion in sales this year, has 160 real estate professionals and offices in Brentwood, Santa Monica, Pacific Palisades and Marina del Rey. Gibson International will rebrand as Pacific Union in early 2018 while remaining an independent legal entity in which Pacific Union will be the majority shareholder. Both Gibson and Heller, who own a 23 percent share of the company, will stay on.
It’s no secret that California real estate market share is highly coveted; prices are sky-high, inventory is scarce and competition among brokerages looking to grab a bigger slice of the pie is fierce. Gibson International will join other Pacific Union merger partners who have come onboard in this consolidation race over the last year, most recently Empire Realty Associates, based in the San Francisco Bay Area’s Contra Costa County, as well as Los Angeles firms Partners Trust and John Aaroe Group. All four of these companies will take on the Pacific Union brand in January 2018. They’re expected to book a collective $14 billion in sales for the year 2017.
Gibson, the company’s president, who was formerly NRT senior VP and president of Coldwell Banker in L.A., said of the deal:
“When Pat and I made the decision to look for an additional investment partner, we knew we wanted to find a group that shares our same values. We are a people-centric firm with a culture that provides great value to our real estate professionals. Pacific Union shares this same commitment to its team, and we’re excited to build upon that shared value.”
The deal takes Pacific Union to 51 offices in Northern and Southern California with over 1,600 agents stretching from San Francisco, Napa and Sonoma counties, Silicon Valley to Beverly Hills and the San Fernando and San Gabriel valleys.
Gibson International, a Leading Real Estate Companies of the World member, also brings with it dedicated relocation services.
“We have a strong belief in Scott’s exceptional leadership and team,” said Mark McLaughlin, CEO of Pacific Union. “His brokerage’s position on the Westside of Los Angeles makes it an ideal partner for Pacific Union as we realize our vision to become the ultimate California real estate company.”
Pacific Union claims to be the largest real estate brokerage in California by sales volume.