Robert Reffkin may have announced a certain “scaling back” of Compass spending and expansion into new markets at Inman New York in January.
But when it comes to the primo properties of San Francisco’s Bay Area and the Peninsula, home to Silicon Valley, money is apparently no object.
Inman broke the story yesterday that Compass is acquiring Alain Pinel Realtors, a 30-year old, family owned innovative luxury broker headquartered in Saratoga, California. Saratoga is not far from the high tech bustling of Palo Alto, Atherton, home to the most expensive real estate in the country housing Apple, Facebook, Google, Intuit, Cisco Systems, Lockheed Martin, Advanced Micro Devices, Lockheed Martin, Hewlett Packard, Tesla, Agilent Technologies, and Oracle, to name a few, executives. This is where $1.5 teardowns are commonplace, Airbnb was born out of housing necessity, and billionsirrs like to roost between trips to their homes in Martis Camp and Hawaii.
In that tech and start-up rich environment, Alain Pinel closed more than $12 billion in sales volume in 2017, placing them seventh on the Real Trends 500.
The acquisition will build Compass’s presence in the Bay Area market enormously, because, Compass bought powerhouse Pacific Union ($14.5 billion in sales) and Paragon Real Estate ($4.5 billion) in 2018. With Alain Pinel, let’s do the math: $12 billion plus $14.5 billion plus $4.5 billion equals almost 19% of the Bay Area market, darn close to Reffkin’s stated goal of 20% market share in the top 20 markets.
Of particular interest to the Dallas-Fort Worth Market: Alain Pinel is a member of Luxury Portfolio, as is our Allie Beth Allman & Associates, Dave Perry Miller, Ebby Halliday and Williams Trew. (more…)