The Real Deal New York

Town reports $1.9B in 2014 business

Year saw public spat among firm's top guns but sales shot up

December 30, 2014 04:00PM
By E.B. Solomont

From left: Andrew Heiberger and Joseph Sitt

From left: Andrew Heiberger and Joseph Sitt

Despite behind-the-scenes drama, Town Residential turned in a solid financial performance in 2014.

According to numbers provided by Town, the brokerage generated $1.86 billion in total sales and leasing volume, representing a 15.6 percent increase over 2013. In all, the firm closed 1,148 sales with an average price of $1.6 million, and it completed 3,775 leases with an average rent of $4,499.

Town currently has over $780 million in sales exclusives, the firm said. Its 238 sales listings have an average price of $3.27 million and its 251 rental exclusives have a total value of $27.9 million, or average monthly rent of $9,272.

It’s not common for firms to disclose their financial performance. CEO Andrew Heiberger said in a statement that he hoped other firms would follow Town’s lead and “open the books, share real numbers.”

One firm that does share its financials is Douglas Elliman, the largest brokerage in New York City and a subsidiary of publicly traded Vector Group Ltd. Vector has not yet released its fourth quarter results but during the third quarter, Elliman closed deals worth $5.2 billion, compared with $4.5 billion during the prior year quarter.

Town is finishing up a tumultuous year in which Heiberger and equity partner Joseph Sitt of Thor Equities traded public barbs after Sitt refused to renew Heiberger’s contract as CEO. The pair patched things up this fall and Heiberger resumed control in October on the same day former president and COO Jeff Appel left the company.

In 2014, Town saw several top brokers exit the firm but picked up some high-profile additions, including Shlomi Reuveni, who joined the brokerage from Brown Harris Stevens.

 

  • BeanCounter

    Lets open the books and see how much Town made in actual profits this year. Regardless of performance, the company is top heavy. Its well known that they had to overpay/overpromise to retain agents and execs when shit hit the fan. Outside of the recent demotions/terminations, they are still circling the wagons trying to weather the storm. My guess is that they get back on track next year just long enough to sell this dog to an outlier looking to get into the NYC market before the 2nd quarter.

    If I were them, I would look to acquire a few other firms before selling, even with 1.9b in sales their market share is minimal at best. They don’t have the technology to keep up with Urban Compass or the mass to combat Elliman. Their new development lags significantly behind Corcoran… So where does this leave them?
    Outside of the top tier in NYC for sure…
    Where is their competitive advantage? I don’t see it…Blue Sky value was decimated with the public spat. What is left is a lot of salary, some really big leases (some to the majority owner of the firm) and a collection of agents who either made such a sweet deal to stay they can’t leave or agents who simply have no other options….
    My point is that you have a company that grosses $20m or so (if they are lucky) but needs 25-30m to operate. This is year 4 for them? assuming they lost 5m a year for the last 4 years and they need another 2 years to break even at best… That leaves them… 22-26m in the hole. At this rate, the firm itself will not really see any return on their initial investments until about year 12 or 15 depending on growth. I just don’t see it… what am I missing?

    • john

      Get a job. Andrew shouldnt be taken lightly. This guy has the golden touch.

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