Compass continues to widen its swath of acquisitions as word came today that it is nearing a deal to snap up Pacific Union National Realty, an independent brokerage operating in California.
Pacific Union recently launched PrivateView, a public portal that allows users to see listings from the moment they’re put into contract, as they’re being prepared for sale. “This allows buyers to engage earlier in the sales process with sellers and their representatives,” the company said in a press release, adding that they felt this ability would be especially valuable in places like the San Francisco Bay area, where inventory is tight.
“With 20 percent of sales in San Francisco and 30 percent of sales in Los Angeles executed off market, this portal a game-changer for buyers,” the release said. “Today, Pacific Union is showcasing nearly $400 million in inventory on Private View.”
By sales volume, the company is the fifth-largest real estate brokerage in California. Acquiring the company would give Compass much better positioning in California, especially the Bay Area and Los Angeles, since Pacific Union has 54 offices and 1,700 agents throughout the state.
A source told Inman’s Patrick Kearns that senior leaders at Pacific Union were notified yesterday about the deal, which will likely be announced Thursday.
The acquisition may come as a surprise to some, since Pacific Union hasn’t been shy about trading paint with Compass in the past. In fact, earlier this month, even, Pacific Union CEO Mark McLaughlin seemingly mocked Compass’s announced entry into the commercial real estate business by acquiring Paragon Real Estate Group.
“I got a kick out of Compass’ announcement because they say they’re getting into commercial, but most of the Paragon team joined us about 90 days ago,” Pacific Union CEO Mark McLaughlin told Inman. Included in that migration was Stephen Pugh, formerly Paragon’s CEO of commercial real estate.
Compass, which was founded in 2012 by Robert Reffkin and Ori Allon, bills itself as a real estate technology company that also sells real estate, has opened offices in Seattle, Philadelphia, Naples, San Diego, Tahoe, Dallas, Chicago, Florida, and now California.