From left, Realogy franchise heads: Gary Malin of Citi Habitats, Pamela Liebman of the Corcoran Group, Tom Kunz of Century 21

Real estate giant Realogy, parent company of the Corcoran Group, Citi Habitats and Century 21, has managed to cut its net losses for 2009 to $262 million, a minor bump in the road compared to the $1.9 billion loss posted for 2008. Cost-cutting accounted for the reduced losses, which came in spite of an overall 17 percent drop in revenue, to $3.9 billion, for the year. The last three months of the year foreshadowed further improvements for the company, with revenue up 11 percent for the period over 2008, and transactions up 18 percent for the company’s Century 21, Coldwell Banker, ERA, Sotheby’s International Realty and Better Homes and Gardens Real Estate franchises. In September last year, Realogy had appeared close to bankruptcy before raising $515 million in new loans that helped reduce its senior debt, thanks in large part to billionaire investor Carl Icahn. [Inman News] [more]

From the February issue: The New York City real estate world has closely followed as brokerages here have downsized and shuttered offices. But just north of the city, in Westchester, the real estate industry has quietly seen a shift of its own. Indeed, some say the brokerage world there has been irrevocably altered during the downturn as some firms have announced closures, and others have set up shop or merged with larger corporate entities, poaching agents along the way. The biggest shake-up, of course, was Sotheby’s International Realty’s October decision to terminate its presence in the county altogether. Sotheby’s sold four of its offices — its three “golden triangle” offices in Scarsdale, Rye and Larchmont, as well as one in Chappaqua — to an affiliate, William Pitt Sotheby’s International Realty. In addition, it shut down a fifth office in Katonah, farther north in Westchester. That follows Better Homes and Gardens Rand Realty, which has seven offices in Westchester with roughly 340 agents, joining the Realogy umbrella at the end of April.  [more]

The year 2009 was a trying time to be a real estate broker, developer or investor, but it never lacked for news. In the aftermath of the financial crisis, the industry watched in awe — and sometimes horror — as residential sales ground to a virtual halt, condo projects stopped in their tracks, office rents shrank and retail stores disappeared. Buyers at buildings like 22 Renwick sued to get out of their contracts, and some were granted the opportunity to back out of their contracts. Meanwhile, an amazing cast of characters — from Kent Swig to Harry Macklowe to Lev Leviev — publicly fought for survival. There were also glimmers of hope, from the opening of the High Line in June to the expansion of Halstead Property into Connecticut to the sale of Former Lehman Brothers CEO Dick Fuld’s sale 16-room co-op apartment at 640 Park Avenue for $25.87 million, almost $5 million more than he bought it for two years ago. Click here to see The Real Deal staff’s picks for the stories that most altered the New York City real estate landscape in 2009. [more]

Realogy’s debt prices skyrocketed
as the real estate giant announced it is seeking $325 million of
second-lien term loans in exchange for bonds held by Icahn Partners.
According to a source familiar with the deal, JPMorgan Chase will
arrange the 4.5-year loan, which will be used to repay existing bank
debt which has climbed even higher. As of 2:44 p.m. today, Realogy’s
$1.7 billion of 10.5 percent notes due in 2014 rose 8.6 cents to 80.75
cents on the dollar, according to Trace, a bond price reporting system
of the Financial Industry Regulatory Authority. “The transaction, if it
closes, will allow Realogy to pay down first-lien secured debt,” said
Emile Courtney, an analyst at Standard & Poor’s. [Bloomberg] [more]

Real estate brokerage Realogy, which was acquired by Apollo Management
in 2007 for $6.8 billion, said its second-quarter net loss decreased to
$15 million from $27 million in the second quarter last year after the
company decided to cut expenses, according to a statement. The
New Jersey-based company, whose brands include the Corcoran Group,
Coldwell Banker and Century 21, said the overall real estate slump that
is to blame for slashed broker’s commissions and record foreclosure
filings is proof that a housing rebound may not arrive in the near
future. Revenue from commissions fell 28 percent in the second quarter
to $746 million and the average price of brokered home sales fell 15
percent to $188,489. Franchise fees dropped to $72 million from $91
million a year earlier. Realogy
had 14,400 franchised and company-owned real estate brokerage offices
as of June 30 and employs nearly 270,000 sales agents nationwide. [Bloomberg] Comments

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Joanne Kennedy and David Michonski said goodbye to agents at the 555 Madison Avenue HQ.

The owners of soon-to-be shuttered brokerage Coldwell Banker Hunt Kennedy bid a
tear-soaked farewell to agents and well-wishers yesterday during a
goodbye party at the company’s headquarters on the 12th floor of 555
Madison Avenue. Eyes brimming with tears, company co-founder and COO JoAnne Kennedy said she was proud of her agents and the two-decade-old company. “We’ve made a very positive difference in New York City real estate,” said Kennedy, who will start work at the Corcoran Group next week. She and co-founder David Michonski, the company’s CEO, spoke of how they sought to uphold high ethical standards and put their customers
first. [more]

Coldwell Banker Hunt Kennedy’s agents will move to the Corcoran Group and other brokerages.

While Coldwell Banker Hunt Kennedy brokers expressed concerns about what will happen to their listings and commissions with the company closing, sources confirmed that JoAnne Kennedy and the majority of Coldwell Banker Hunt Kennedy agents will move to the Corcoran Group, though Corcoran has said it has no formal agreement with the soon-to-be-defunct brokerage. “Nearly all” of the current Coldwell Banker Hunt Kennedy agents are moving to Corcoran, said Philip Kiracofe, chief technologist at Coldwell Banker Previews International, CBHK’s luxury home marketing arm, who is “overseeing the transition.” Corcoran and CBHK share ties to New Jersey-based Realogy Corporation. A source, who asked for anonymity, said all brokers have been told the four CBHK offices will be closed by June 5. [more]

As industry leaders lamented the dissolution of Coldwell Banker Hunt Kennedy, a story The Real Deal broke Wednesday, the Corcoran Group’s CEO Pamela Liebman dismissed rumors that the mid-sized brokerage will be absorbed into Corcoran. “There is no formal incorporation of Coldwell Banker agents into Corcoran,” Liebman said. “This is not a purchase by [Corcoran parent company] NRT.” She said that in the coming weeks, some former CBHK agents may be encouraged to come to Corcoran because the two companies share ties to New Jersey-based Realogy Corporation. Industry sources have said that JoAnne Kennedy, the COO of CBHK, will
be relocated within Realogy, and in a memo released Wednesday, Kennedy
told CBHK brokers that if they “follow her,” they will be able to keep
their listings and data. When asked whether Kennedy would be hired by Corcoran and bring CBHK agents with her, Liebman said she had no comment. [more]

Longstanding New York City brokerage Coldwell Banker Hunt Kennedy is closing its doors, according to multiple sources familiar with the company. The 21-year-old, 214-agent company — Manhattan’s sixth largest, according to a recent survey by The Real Deal — will cease operations within 60 days, the sources said. What’s left of the company is believed to be on the auction block and priced at around $5 million. But because Coldwell Banker Hunt Kennedy — including its luxury marketing division Coldwell Banker Previews International — allegedly owes some $12 million, the price would presumably go towards its debt. It’s not the first Manhattan company to close its doors in a rocky market. Last month, boutique residential real estate brokerage JC DeNiro & Associates announced it would close its doors. But Coldwell Banker Hunt Kennedy is by far the largest Manhattan company to close thus far, with offices at 555 Madison Avenue, 329 Columbus Avenue, 64 West 21st Street, and 155 Seventh Avenue in Park Slope. [more]