The move comes as part of a larger consolidation plan announced by Cairn to create a new national real estate services business.
“Cairn Real Estate Holdings is incredibly excited to announce the acquisition of JPAR as our platform investment,” Cairn Chairman and CEO Rick Davidson said in a statement. “The scale, reputation and market position of the company provides the foundational structure to grow a nationally based and highly competitive real estate services company.”
Davidson is a long-time veteran of the industry, having previously served in executive roles at Realogy and Century 21. Cairn Real Estate Holdings was created out of a partnership between Davidson and private equity firm Aperion Management, and is focused on integrating services across the industry in order to create a seamless homebuying and selling experience for the consumer.
JPAR, which was founded in 2011, is ranked in the Top 25 Largest Real Estate Brokerage Firms in the U.S., according to Real Trends. The company totaled $4.4 billion in sales last year, an increase of 23 percent year over year. With the acquisition, the combined forces of Cairn and JPAR will yield a workforce of over 3,300 agents in 61 offices across 23 states.
A press release from JPAR stated that part of Cairn’s strategy is to also acquire ancillary service providers, independent brokerages, franchise branded brokerages and franchise platforms that operate across a variety of agent compensation models. Cairn’s own platform supports agents across different compensation models, which the company states, helps agents to grow in their business without limiting their options.
“We believe the best approach is to create operating leverage through scale,” Davidson said in a statement. “The ‘silver tsunami’ [the wave of baby boomers aging into retirement] sweeping across the industry has driven many of the great brokerage companies to seek succession strategies. Cairn Real Estate Holdings, through our partnership with Aperion Management, is structured to quickly scale and deliver a comprehensive suite of services for agents and the consumer.”
JPAR executives expressed optimism about the new chapter for the company.
“The JPAR Nation welcomes this exciting new era of growth,” Mark Johnson, CEO of JPAR Brokerage, said in a statement. “Rick Davidson is a real estate powerhouse and we’re excited to be part of his bold vision for the future of the real estate services industry.”
“JPAR Real Estate was born out of a simple concept to supply real estate agents with everything they could possibly want or need in a brokerage,” Giuseppe ‘JP’ Piccinini, founder of JPAR, said in a statement. “We have built an incredible culture and legacy that will live on and expand under Cairn Real Estate Holdings.”