Coldwell Banker Hunt Kennedy to close
May 20, 2009 07:36PM By Candace Taylor
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.
JoAnne Kennedy, the firm's COO, did not respond to requests for comment, but sources said she will be relocated within Realogy.
In a company-wide memo distributed today and obtained by The Real Deal, Kennedy told brokers: "As the economy continues to stammer and hopefully settle down, as our industry is shifting, we have a plan for all of us to move together to continue our careers."
She continued: "If you 'follow me,' all of your listings will go with you, as well as your data. You will have an opportunity to interview before making a final decision."
In response to rumors that brokers would not receive their commissions, she said: "everyone will be paid every cent they are due. The money belongs to you."
Known originally as Hunt Kennedy, it was founded in 1988 by William
Morris Hunt III and Kennedy, the current COO, and specialized in high-end
properties on the Upper East and West sides.
In February 1996,
Hunt Kennedy joined forces with David Michonski and international real
estate company Coldwell Banker, which has some 3,500 offices worldwide,
to create a New York-based, wholly owned franchised affiliate known as
Coldwell Banker Hunt Kennedy.
Coldwell Banker Hunt Kennedy's parent company is Parsippany, N.J.-based Realogy Corporation, which has struggled amidst the nationwide housing downturn. Realogy also owns NRT, the nation's largest residential real estate company, with brands such as the Corcoran Group and Sotheby's International Realty under its umbrella.
Real estate firms generally do not fetch high prices because they have few assets, said Paul Purcell, head of Charles Rutenberg Realty in New York and a partner at real estate consultancy Braddock + Purcell.
"You're buying a name and people, but you're not buying assets," Purcell said.
The firm likely struggled in a market with "very little deal volume," Purcell said, and because the Coldwell Banker name carries little weight in Manhattan, he said.
Just last month, Kennedy told The Real Deal that many New Yorkers "associate the Coldwell Banker logo with the suburbs." At the time, she said the company's high-end Coldwell Banker Previews International arm was helping the brand gain traction in New York City.
It appears to have been too little, too late.
"I hate seeing it happen," Purcell said of the company's closure. "It doesn't bode well for any of us."
The Real Deal reserves the right to delete any comment it finds to be rude, obscene, racist, sexist, bigoted, irrelevant or repetitive, as well as inappropriate comments about anyone's personal appearance or advertisements. The Real Deal does not endorse any comments posted on its Web site nor does it verify the veracity of comments or the identity of posters.
Comments
Anonymous
She'll be relocated somewhere within-inches-of-bankruptcy Realogy? Now, THAT'S encouraging...
Comment #1 Posted By: Anonymous 05/20/09
Anonymous
Who the hell is Charles Rutenberg? That name carries weight? Did I spell it right?
Comment #2 Posted By: Anonymous 05/20/09
Anonymous
This is far from accurate. CBHK will be rolled up into NRT, which owns Corcoran and Sotheby's. If you look at The RealDeal data, it shows a 350% increase in listings in the last two years, nearly 3 times any other firms in the the Top 10. NRT was probably savvy enough to recognize the value of consolidating that growth with the other two luxury brands it was already operating in NYC.
Comment #3 Posted By: Anonymous 05/20/09
Anonymous
This story is full of enormous inaccuracies. It isn't even worth commenting on it is so inaccurate.
Comment #4 Posted By: Anonymous 05/20/09
Anonymous
FYI : commenter #3. Charles Rutenberg is a 2 year old realty that grew to over 200plus agents to date and will continue to grow while others are forced to shut down. That name carries tremendous weight considering what they have accomplished in a couple of years. There is a reason Paul Purcell is quoted constantly and the media consults him on all sort of real estate matters. He is the smartest , the sharpest, the brightest the all of it great , you will come accross in this industry. Not to mention nice, kind , honest, real with a great sense of humor. I am one of his senior associate brokers ( guess who ? ) and have been in the industry long enough to know the difference. How many agents will you find that feel this way about their brokerage ? Get ready to hear more about Charles Rutenberg every day. Oh yeah and you spelled it right - thats pretty good.
Comment #5 Posted By: Anonymous 05/20/09
Anonymous
Far from accurate is correct ... NRT owns/operates Coldwell Banker offices across the country but it does not own the Coldwell Banker brand (franchise system). Among others, Coldwell Banker (the franchisor) and NRT (brokerage operations, which include Coldwell Banker branded offices) are both owned by Realogy.
Comment #6 Posted By: Anonymous 05/20/09
Anonymous
Oh wow! This is pretty big news.
Comment #7 Posted By: Anonymous 05/20/09
Anonymous
The person who leaked this story should be ashamed. JoAnne Kennedy deserves respect for building up a wonderful company. She should have been given the opportunity to break the sad news to the press herself. Forwarding a company email is below dignity and does not go together with the companies ethical standards. Kicking someone who is down on their luck is despicable.
Comment #8 Posted By: Anonymous 05/20/09
Anonymous
I don't understand why all these companies are going down. We at Nest Seekers are having the best 2 quarter we had since the beginning of last year. We are opening another office, expended Miami and did probably 150 transactions in the past 60-90 days. Sold townhouses and penthouses. On Tuesday we are launching a new version of our website with upgraded technology. The firm pays for all of our agents advertising and marketing with no exceptions. The recession is over. At least at Nest Seekers. Tell the CB agents to go see Nest Seekers. The future of this business.
Comment #9 Posted By: Anonymous 05/20/09
Anonymous
I think its very sad that CBHK is closing. I worked there for 3 years before going to a smaller firm. Michonski's office build-out probably didn't bode well with the money people. It was bad management all the way around. They spent all that money on technology, but they forgot rule #1 in sales: selling.
Comment #10 Posted By: Anonymous 05/21/09
Anonymous
You can't manage a real estate office and not be a sales person yourself or know sales intimately. The people who ran that office didn't know sales.
Comment #11 Posted By: Anonymous 05/21/09
Anonymous
Could anybody please explain to me how on earth they acquired $12 million in debt?
Comment #12 Posted By: Anonymous 05/21/09
Anonymous
They are in $12M debt because instead of paying back back debt over the years they just kept refinancing year after year loses. One of the first blows was the failed merge with Greenthal but you're probably too young to know for that history. CBHK have been losing money every year for for a long time. When you are more focused on your ago and trying to grow with no substance thats what happens. Same happened for all these firms that wanted to become big but had no strong foundation. Sad but true. Next to go down is probably BOND. There is no question about it. They are probably in heavy debt trying to keep up with overheads on these ridiculous store fronts. Now they have this guy Garage. He'll burn more cash and produce more debt. Follow Bond. they are next.
Comment #13 Posted By: Anonymous 05/21/09
Anonymous
Just another bubble, like everything else. What were they thinking???
Comment #14 Posted By: Anonymous 05/21/09
Anonymous
#11....Is Nestseekers still putitng up those ads on Craigslist saying that agents who join Nestseekers make $500,000 in thier first year!!LOL PSSST..don't tell anyone but Nestseekers was one of the firms that was disassociated from REBNY's RLS due to non payment of REBNY dues last month. However, to be fair, I see that they did pay up and reinstated recently..but to let it go that far doesnt quite jive with your comments!
Comment #15 Posted By: Anonymous 05/21/09
Anonymous
Die brokers. Die. You're not worth what you charge. You're middlemen. Unnecessary at best. Schemers and cheats is more like it.
Comment #16 Posted By: Anonymous 05/21/09
avaking
Ha! I went there a couple of years ago and they fired me within 10 days for not being a "team player" And I had 22 years experience as an independent broker in manhattan. I chose to go with a firm as it was harder to do deals on ones own. so even though i was successful and brought deals in the door, that wasn't good enough for them. Being a successful broker is NOT about being a "team player"
Comment #17 Posted By: avaking 05/21/09
Anonymous
My hope is that as more and more brokers go out of business the strong who survive (surely they will survive) decide to once and for all change the ethical environment of their industry. You guys need: 1. An MLS - as your client I am disadvantaged because there is no MLS. You work for me and I demand better service. 2. A FIRM industry standard about square footage. You miss the sq footage and you get sued and lose your license. 3. Taking away licenses of people who use Craigslist and other sites unethically. Post bait and switch adds, lying about number of bedrooms, lying about square footage, posting pics of a different apartment, posting by owner or no fee when not true etc etc. One only need to spend 5 minutes on CL to know how crooked your industry is. This is a quick list and only a start - clean up your industry or more and more people will just use the internet. It's your call.
Comment #18 Posted By: Anonymous 05/21/09
Anonymous
Hey #14: What do you mean "You can't manage a real estate office and not be a sales person who knows sales intimately"? The Corcoran Group has been doing that for years now! Very few Corcoran managers know anything about real estate, much less sales! They are truly a case of the blind leading the blind...
Comment #19 Posted By: Anonymous 05/21/09
Anonymous
A good broker is a dead broker. Please pick up your award on your way out. Thank you.
Comment #20 Posted By: Anonymous 05/21/09
Anonymous
Gotta love how being a broker is the worst job on earth right now. all these brokers havent made a penny in 2 years and probably wont for another 5 years. get a real job guys. you need to work hard to make money. pathetic. theyll all move back in with their parents soon. say hello to boise idaho brokers!!
Comment #21 Posted By: Anonymous 05/21/09
Dissatisfied Elliman agent
Jeeze, #25. From the way things are run around here, why is 100% split not better than 60%? What does Elliman do for us? The printers are always down. They've severely reduced staffing, ad budgets, tech support. The mood in the office is downright nasty. Please tell us why the large brokerage model isn't Dead in this environment, especially now with MLS websites like streeteasy.com.
Comment #22 Posted By: Dissatisfied Elliman agent 05/21/09
Anonymous
stop complaining - snap out of it - go to Nest Seekers. They pay all expenses, all advertising, all support and all marketing - EVERYTHING. I'm an agent there and I get 3 new calls a day. They are doing amazing things there with the web and they have the resources to take care of their agents. oops... gotta run to another appointment. I'm doing my 5th sale this month. Did one 2 weeks ago 8 days from showing to closing......the recession hasn't touched me....
Comment #23 Posted By: Anonymous 05/21/09
Anonymous
...lol!!!!!!!!!! this is for the nest seeker guy.. nobody is doing well in this market! you half-truths are just lies... smoke & mirrors will not get you anywhere in the next cycle
Comment #24 Posted By: Anonymous 05/21/09
Anonymous
#26..too funny!LOL
Comment #25 Posted By: Anonymous 05/21/09
Anonymous
Coldwell Banker Hunt Kennedy is going to be missed, great people, great company!!!
Comment #26 Posted By: Anonymous 05/21/09
Anonymous
I walked into an for sale by owner open house once and told the owner I was with Nest Seekers and she chased me out of the apartment with a kitchen knife, even the doorman ignored me when I showed my business card, since I have been in theraphy and left the business alltogether, every I time I said Nest Seekers they thought I was a tuperware sales person. Dont say i didnt warn you
Comment #27 Posted By: Anonymous 05/21/09
Anonymous
All the coldwell banker agents are going to Ardor Realty, the best company to work for in Manhattan today. We have the best system and more leads per agent than any other company out there, no company can match our lead generation system and income per agent. Get smart and come visit our state of the art facility, ride the summer with a winner.
Comment #28 Posted By: Anonymous 05/21/09
Anonymous
JoAnne Kennedy is a wonderful woman, but who wants to be rolled into something? She should do an interview with The Real Deal immediately to keep her beautiful reputation strong. Yes, it's odd to receive more phone calls from Bond, Nest and Ruten than CBHK.
Comment #29 Posted By: Anonymous 05/21/09
Anonymous
Who is Ardor???? Funny I never heard of them..
Comment #30 Posted By: Anonymous 05/21/09
Anonymous
Boy this news has caused comments - much like the real estate market itself. The last several years led to intense greed and hardly a person wasn't seduced by it. Too much overhead that demands servicing - similar to a hefty mortgage. Eventually, you recognize you have to cut back and keep on trying if you will survive. Weichert is a brand that has been associated with the suburbs as Kennedy states Coldwell Banker is -- Shoot, most of the country is "suburban". Weichert's two offices are hiring and doing business. There's a strong referral base coming into Manhattan from the outer offices. Everyone needs to be flexible in their business plans and adopt accordingly. Best wishes to everyone.
Comment #31 Posted By: Anonymous 05/21/09
Anonymous
who is Ardor? just do a search on the web, Ardor has more daily web traffic than any of the big companies out there
Comment #32 Posted By: Anonymous 05/21/09
Anonymous
Ardor is the epitome of sleazy brokerages! They are the worst! Among the worst offenders of advertising other peoples exclusives and bait and switch. We won't even interview anyone who has ever worked at Ardor. What losers.
Comment #33 Posted By: Anonymous 05/21/09
Anonymous
For those who are NOT in the real estate business and reading all these comments, do not be fooled, real estate is the easiest profession, specially in New York city. Anyone was making money, in fact a scientist released a chimpanzee into a real estate office and the chimpanzee rented an apartment on his first day on the job and the following day he got a signed contract on an open listing. This was an amazing finding, how easy this job was, is just that some of these agents make some money go out and buy some Prada outfits and begin to think they are masters of the universe but this is the easiest gig anyone can get into, so when these companies go out of business, what’s the big deal, in a few days someone will open another company and hire a chimpanzee
Comment #34 Posted By: Anonymous 05/21/09
Joe Davila
The only thing that has caught my attention is all the anonymous comments. Why is everyone anonymous? Can't anyone speak on the record anymore? Not anonymous, Joe Davila
Comment #35 Posted By: Joe Davila 05/21/09
Anonymous
So many pathetic comments. Get the hate out of your hearts. There are good people and bad people in this industry just like in any other. Scumbag doctors out there doing the godly work for money ..... for ex. Whoever is enjoying the downfall of others is as low as it gets. Joe Davila good for you.
Comment #36 Posted By: Anonymous 05/21/09
Anonymous
If you are not it this indistry you have no idea how it works. You dont know the least. to the misinformed seller way up there: We have MLS. You will have a hard time elling without it unless you seriously underprice your property. You will miss the volume and the exposure. Most buyers work with a buyers broker. Only the dumb ones dont.
Comment #37 Posted By: Anonymous 05/21/09
Anonymous
Whetever.
Comment #38 Posted By: Anonymous 05/21/09
Anonymous
Please excuse for the typos, also, Ardor does have a pretty successful business model if you're willing to learn their style and a control freak.
Comment #39 Posted By: Anonymous 05/21/09
Anonymous
Just got back from my appointment and wanted to check in on you clowns. I think I have another deal. that would be my 5th this month. #30 and #31 are such losers...disappear or go post some craigs list garbage. I'll just go about selling another condo before the end of month and go shopping. 30 and 31 - when I need my shoes shined, I'll call you.
Comment #40 Posted By: Anonymous 05/21/09
Anonymous
Dont you guys just love # 44, knows it all! gives advice! and have lots of insights about whats out there and where to go, I just love these big time wannabes, overflowing with advice and giving us all direction on what to say and how to say it. It even breaks down good and bad brokers by company and read the future too, as who is leaving the business and who is staying, I would love to meet this fruitcake face to face.
Comment #41 Posted By: Anonymous 05/21/09
Anonymous
Ha ha #46 this is the typical dude that refuses to leave a bar when the bartender yells LAST CALL, he tells the bathroom attendant that he is single by choice but that if he wanted he could have them all! Then on the way home he tells the subway token clerk that he usually rides in a taxi but that he forgot his wallet and he wishes to jump the turnstile, then when he arrives home he lies in bed and curls up in a ball with his toothless dog to dream about being big time.
Comment #42 Posted By: Anonymous 05/21/09
Anonymous
CBHK does not have a parent company. It's independently owned and operated.
Comment #43 Posted By: Anonymous 05/21/09
Anonymous
Ardor Realty, is like being down in the hole with the devil.
Comment #44 Posted By: Anonymous 05/21/09
Anonymous
What's wrong with most of you? Here is a decent company that has to close its doors. JoAnne Kennedy is a hardworking, decent and knowledgable broker who lead the company for 21 years. Is it really neccesary to be so vicious? What goes around comes around, it can happen to all of you.
Comment #45 Posted By: Anonymous 05/21/09
Anonymous
To #54 - Wake up and smell the coffee!! You are right- "What goes around comes around" and now all these brokers a feeling what they dished out for years!!!
Comment #46 Posted By: Anonymous 05/21/09
Anonymous
# 52 is a MORON! he/she doesnt understand business traffic, he/she probably is a traffic cop giving tickets to money makers. the more gossip the more traffic the real deal gets, more traffic means more ads can be sold to brokers on this site, more revenue. TMZ.com the hollywood gossip website is generating more traffic than NBC.com nowadays, gossip sells # 52 dont be such a MORON, the real deal has open up its doors to this gossip for a reason, but you are obvioulsy not in the business of making money. MORON
Comment #47 Posted By: Anonymous 05/21/09
Anonymous
Whoever thinks working as a broker is so easy "a caveman can do it" should try it for him/herself. It is a tough profession. You're dealing with people's emotions and money. They are stressed and anxious about spending money, especially in this market. Any broker can tell you that the majority of their roster of buyers are mostly window shoppers at the moment waiting for "the bottom" (they may miss it). Not to mention that you only make your business from your rolodex, you're never "given" listings unless you work on a team, which the best firms support- Corcoran, Elliman, etc. I dare all those who posted who work on salary to try working as a broker for 6 months and see if they write the same thing...I very much doubt they will. As to CBHK, their pictures and website were terrible..they simply could not compete with the big boys and their websites. The brokers from CBHK will be redistributed, I'm sure
Comment #48 Posted By: Anonymous 05/21/09
Anonymous
joanne is a great person, david was over his head and really didn't get it and frank gerage was a novice he just didn't know anything about the commercial real estate business.
Comment #49 Posted By: Anonymous 05/21/09
Anonymous
Brokers, please!!! Cut the shit now. If you really break it down, a broker's job is really a useless one and certainly does not justify 6% commission. Homes sell themselves. Did you design it? Build it? From what I have noticed, brokers are essentially uneducated, fast talking, used car salesmen. And even those who have "education", they were either educated in a useless field or could not cut it in their field. Gee, I know of so many Dr.'s, lawyers, professors who switched their careers to be a doorman and let people in to open houses. YOU ARE NOT PROFESSIONALS. As someone said, all you need is a nice prada suit and tons of hair gel and voila!!!
Comment #50 Posted By: Anonymous 05/21/09
Anonymous
cbhk went down because they pumped all their money into building out office space, didn't have strong leadership and couldn't grow their commercial side because they hire stupid people. I loved how they spend $500k building out some sick roof terrace space - for what purpose who knows?
Comment #51 Posted By: Anonymous 05/21/09
Anonymous
Ok #51: go get yourself some Prozac, seriously. What are you doing reading a real estate trade paper anyway? You want to absorb as much as you can so you can "sound" knowledgeable about a profession you say you despise? If you want to talk about sleaze, take a look at our financial services industry and how they have brought the whole economy down; a prime example of not deserving the money they get. And how about the MTA who is corrupt the core and is a disservice to the public, and has employees sleeping on the job collecting OT pay? There will always be scum in any profession. My hunch is that you are jealous because you tried in real estate and you fell flat on your face, am I right? So you went back to a salaried job. You're probably a deadbeat with a low-level dissatisfying job, or unemployed (recently fired for being lazy); otherwise where would you find the time to do a dozen postings on a trade paper's blog? Get a life, and while you're at it, a job. Either that, or check into a mental ward.
Comment #52 Posted By: Anonymous 05/21/09
Anonymous
CBHK was an amazing company with humble beginnings that grew from boutique brokerage to powerhouse.They also had a reputation for being eager to co-broke, and for having the highest ethical standards. The real problem: The long recession. 21 years of dedicated service to sellers and buyers is something to be proud of. Coldwell Banker Hunt Kennedy/Previews will be greatly missed by many. Regarding brokerage as a vocation, as long as sellers want more for their properties and buyers wish to pay less, there will be a need for brokerage and dedicated brokers who work for free, until a deal is closed.Everything we buy today is marketed and sold to us, Real Estate is no different.New York City attracts the highest caliber Clients and Brokers. There is a world Financial Crisis working it's way through New York and around the globe that has made life difficult for almost everyone, Real Estate companies included. As an industry we are simply taking our turn. When the economy improves, people will dive into NYC to grab bargains in the greatest city on earth.
Comment #53 Posted By: Anonymous 05/21/09
Anonymous
#53, I agree with #51- most (not all) brokers are full of BS! Many non-broker people read this blog becasue they are trying to figure out when to buy; they have been screwed over by so many brokers they have to find a new source of info. Real Deal at least makes an attempt to be honest- all we ever hear from brokers is "Buy now! Buy now!" Also, I think most buyers are loving the fact that brokers have to kiss everyone's a@@ now because many have not made a real sale in months! To all you brokers who have pushed up prices and treated buyers like sh-t for years: PAY BACK IS A BITCH!
Comment #54 Posted By: Anonymous 05/21/09
Anonymous
Here's another one for #51: real estate brokers could not "cut it in their field?" Excuse me, but would you say that about Penny Krone, who was a former news anchor? She had a couple of decades of journalistic success before getting into real estate brokerage. Yes, it's a PROFESSION. They don't deserve 6%? And stockbrokers do deserve their commission? Would it be fair for me to say that stockbrokers are useless because I've made more money buying and selling my own shares over the internet, than dealing with a stockbroker? And that they don't know any more about the market thank I do? Would it be fair to say that headhunters and actors' agents and publicists and advertising agencies are all smoke and mirrors, creating hype and excitement over stuff that can sell itself or themselves? Why is it that people will begrudge the real estate agents commission (which is split several ways, BEFORE taxes, by the way) before they argue about what anybody else is worth? Because they envy those who are good at it, and wish they could do it themselves (but can't), that's why.
Comment #55 Posted By: Anonymous 05/21/09
Anonymous
Hey #51: Or should I say Sybil, who is also #55 (who are you kidding?) If you've been "screwed over" by a broker, then it's your fault, for not giving your business to somebody deserving of your loyalty, so that is YOUR misjudgement, and your problem. You have probably been stupid enough to be "screwed over" by other professions, too. Stop whining, and get yourself a job, you slob.
Comment #56 Posted By: Anonymous 05/21/09
Anonymous
51 here. Actually I did not write several posts as you claim. That was my only one, so if others feel the way I do, then it must say something as well. "Financial services brought the economy downturn...." Of course, real estate had nothing to do with it. Of course the brokers had nothing to do with artificially inflating the homes, which in turn (while working in hand with mortgage brokers) caused banks to lend substantial amount of money for something that was not worth as much and to many of these people did not have the ability to pay back. But what did you care, you got your commission at closing. As for me, I was never a real estate broker. I am a real professional. I am a college graduate and have two advanced degrees in my field rather than taking a 40 hour course a passing a stupid exam, which any high school graduate qualifies for.
Comment #57 Posted By: Anonymous 05/21/09
Anonymous
#51: Oh, puleeeze. If financial services didn't feel they had to get on the greed bandwagon (as if the 43 million dollar salaries weren't enough), and if lending institutions didn't, we never would be in this mess. A single real estate industry cannot "artificially inflate" anything. It's infantile to think of people in the industry as deserving "payback". Success in this business has more to do with people skills, tenacity, real product knowledge, contacts, etc. then what kind of market we are in. I made triple the amount of money now then when I first started (and that was during a high market). Why? Because I was brand new, had few contacts (and I've mostly been a buyer's broker). Just like you, I have two degrees also including an MBA. The difference is that unlike you, I had a successful career before this, and always loved real estate. I'm truly sorry that you have 2 degrees and no job. It happens; it's a sign of the times. But a rotten, "chip on your shoulder" attitude is not going to motivate anybody to hire you, no matter how "educated" you are. Not in this economy, or even in a great economy.
Comment #58 Posted By: Anonymous 05/21/09
Anonymous
Looks like we all hate brokers- it's not a real job!
Comment #59 Posted By: Anonymous 05/21/09
Anonymous
#51 Rocks!
Comment #60 Posted By: Anonymous 05/21/09
Joe Davila
Written by Joe Davila (A professional agent not ashamed of his profession) During the boom times I never heard a seller/buyers complain. Buyers were thrilled that the apartment they had purchased continued to increase in value. However, the increase in value, be it the value of a home, stocks or business valuations, gas, rare coins, art etc. are cyclical in nature. Those who did well have no complaints. Those who did not do well can't stop complaining. Blaming everyone for the state of the market is useless. No broker makes anyone buy anything. If you really believe your decision to purchase was made for you by a real estate agent, then you're not being candid with yourself. However, most buyers read the papers, saw their paychecks and decided to do what their piers were doing, that is buy an apartment and treat it as an asset that they expected to continually increase in value. The market excelled in direct proportion to how well pay and bonus was handed out. No need to over think it. If you have adapted to a post September 2008 business strategy, your business has a chance to succeed. Written By Joe Davila
Comment #61 Posted By: Joe Davila 05/21/09
Anonymous
Get a life.
Comment #62 Posted By: Anonymous 05/21/09
Anonymous
whatever, cbhk went down in a huge ball of fire. what a joke $12 mm in debt. i guess they can sell their fancy flat screen tvs and recycle their glass walls. david should be ashamed of himself for running the company into the ground
Comment #63 Posted By: Anonymous 05/21/09
Anonymous
It's amazing how when you can anonymously post your remarks you slander good people that you wouldn't have the nerve to slander to their faces.
Comment #64 Posted By: Anonymous 05/21/09
Anonymous
Nothing but wild orangutans in this business stepping on each other, priceless!
Comment #65 Posted By: Anonymous 05/22/09
Anonymous
nothing but wild orangutans in this business, priceless
Comment #66 Posted By: Anonymous 05/22/09
Anonymous
If you don't like working with brokers, then don't. If you can buy, sell or rent without one and that is your choice then do so. No one is forced to work with a broker.
Comment #67 Posted By: Anonymous 05/22/09
Anonymous
Written to Joe Davila "Joe Davila (A professional agent not ashamed of his profession)" LOL, do you have this little slogan printed on your business cards??Get over yourself, so self-righteous- you think just because you put your stupid name up 5 times it makes what your saying more valid than all others? This was written about Joe Davila
Comment #68 Posted By: Anonymous 05/22/09
Anonymous
Best of luck guy's, 21 years in business in this town is quite a feat. This current environment REALLY SUCKS!!! Joanne...the best!
Comment #69 Posted By: Anonymous 05/22/09
Anonymous
stay tuned..... which commercial firm is next ?
Comment #70 Posted By: Anonymous 05/22/09
Anonymous
How long before the first commercial firm folds ?
Comment #71 Posted By: Anonymous 05/22/09
Anonymous
The ignorance in all these comments amazes me.
Comment #72 Posted By: Anonymous 05/22/09
Anonymous
Corcorans NEXT!
Comment #73 Posted By: Anonymous 05/22/09
Anonymous
#51, #60, #62: seriously, honey you're not fooling anyone, pretending to be 5 different people. I think you're the one who needs to get a life, or a JOB. Sorry your two degrees didn't get you that. Fantasizing that others have made big money and didn't deserve it (while you're down on your luck) and trying to read on online trade journal in hopes of some secret "formula" that will help you buy real estate for pennies on the dollar is f****ing PATHETIC, you poor slob.
Comment #74 Posted By: Anonymous 05/22/09
Anonymous
# 72, I completely agree. The ignorance contained in these postings leaves me in amazement. # 73 to say Corcoran is next...please. Unlike CBHK, Corcoran has exercised prudent decision making, by closing their Harlem office (reduction of overhead) and eliminating some (not really many at all) administrative positions. Corcoran is poised to continue as America's #3 "luxury brand brokerage" (even though they only have offices in NYC, Hamptons, and Palm Beach, unlike Sotheby's which has offices everywhere). CBHK had terrible internet presence. Their pictures of apts were terrible. Their website was not user friendly. Nearly 100% of buyers use the internet to find properties (if they are not working with a broker already). CBHK underestimated the importance of this...those who can't adapt get left in the dust.
Comment #75 Posted By: Anonymous 05/22/09
Anonymous
Just like "everyone hates attorneys until you need one," everyone hates brokers until he/she needs to sell his/her apartment! Those who b!tch and moan forget that brokerages must pay fees to RLS and marketing to the NY Times Online to get listings on that website. A large part of the 6 or 5% goes toward that.
Comment #76 Posted By: Anonymous 05/22/09
Anonymous
Real estate is the easiest profession, an orangutan can sell real estate in this town, for those who debate this to be a fact, take a look at most israelis in the profession, they sell sell sell and most can barely speak english with an accent so thick is ridiculous and the majority were moving furniture for NYC moving companies before entering real estate, isnt that enough proof. All you need is COJONES and no shame and you'll go right to the top, Israelis have both. Degree? who cares
Comment #77 Posted By: Anonymous 05/23/09
Anonymous
Funnyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyy
Comment #78 Posted By: Anonymous 05/23/09
Anonymous
Comment # 8... If the company treated it's employees with respect and dignity, they would get it back, but since they don't...oh well guess I gotta look for a job now!!!!!!!!!!!!! crap
Comment #79 Posted By: Anonymous 05/23/09
Anonymous
CBHK was a joke as far as management leadership, lets take for instance that ignorant and rude clown that was the manager of their office on Lexington east 80s who is now again an agent at Elliman. What a joke!
Comment #80 Posted By: Anonymous 05/23/09
Anonymous
Those who have had poor experiences with, or think brokers are useless and equal to orangutans, have only themselves to blame. The rest of us are out here doing an honest, hard job, making buyers and seller's lives easier and respecting the financial responsibilities that brings. You need to question your own judgement if you have had a less than stellar experience with a broker you are never forced to work with in the first place.
Comment #81 Posted By: Anonymous 05/23/09
Anonymous
Thank you 81!
Comment #82 Posted By: Anonymous 05/23/09
Anonymous
# 81 the comment wasnt aiming at your honesty, I am sure you are just ripe to enter a church you self righteous idiot. the comment was aimed at those who claim that real estate is a profession that requires a degree or some kind of special skill, the point is that just about any one with a pea size brain that cant even speak the english language properly can sell real estate in NYC, and Israeli real estate agents were presented as an example, agents that were moving furniture before entering real estate, and yes Orangutans can do open houses too.
Comment #83 Posted By: Anonymous 05/23/09
Nancy Brennan
It would be really great if these threads could work 2 ways. One is open to industry insiders only and the other would be open to outsider ranter/ravers who don't know what they're talking about. CBHK has been a great company run by a great woman, JoAnne Kennedy, who is an icon in this business. She has run this company with her heart and soul and takes a personal interest in everything her agents are working on; very rare in this business. It has been an honor to know and work for her and she will rise again.
Comment #84 Posted By: Nancy Brennan 05/24/09
Anonymous
I agree with most of the comments on CBHK's management I have over 25 years experience selling condo's, townhouses and buildings working for a large company, then developed my own firm, after several years I retired, but was restless and wanted to do real estate again. When I interviewed with the young agressive sales manager he wasn't interested..probably because everyone in his office was under 30.
Comment #85 Posted By: Anonymous 05/24/09
Anonymous
#75 - Since when did Corcoran demonstrate "prudent decision making?" Closing a few offices hardly made a dent in their overhead, and by continuing to sink money they don't have into their hot-air marketing & branding campaigns, they are sealing their coffin. Any CBHK broker who moves to Corcoran is merely changing deck chairs on the Titanic.
Comment #86 Posted By: Anonymous 05/24/09
Anonymous
That "young" manager # 85 is referring to is MICHAEL SHAPOT, this guy really had no idea what the heck he was doing, yet he was the sales manager at CBHK, he is now a below average agent with Elliman, obviously he couldnt find another management job, no wonder why CBHK is going under.
Comment #87 Posted By: Anonymous 05/24/09
Anonymous
Let's be guarded in our praise of Joanne Kennedy: She got herself - and all of her agents - into this mess. She's known about CBHK's impending doom for a LONG time now, yet she kept her agents in the dark about it. (Not all of them were fooled - some of the best CBHK agents bailed out over the past year). Of course Joanne's going to Corcoran because, due to her huge debt she owes to Reology, she has no other choice. But, let's wake up, guys: CBHK brokers should think twice about following her there. You were misled once, and there's every reason to believe it can happen again -- Desperation has no conscience.
Comment #88 Posted By: Anonymous 05/24/09
Anonymous
Half of these comments here have been censored out. thats bad
Comment #89 Posted By: Anonymous 05/24/09
Anonymous
# 88 is absolutely right, there are a few comments about Joanne Kennedy and how much of saint she is, but if she was such a good soul, why didnt she warn her agents about the real situation of her company. Typically nobody gives a damn about the agents, all these owners are out for themselves and focused on the profit. Now all these agents are out of their comissions and probably the listings they worked so hard to acquire. Shame on you Ms. Kennedy
Comment #90 Posted By: Anonymous 05/24/09
Anonymous
Yeah, some saint, some icon. Pah-Leeze. Joanne Kennedy led her loyal brokers to their slaughter, period.
Comment #91 Posted By: Anonymous 05/25/09
Anonymous
You guys dont really believe that Joanne kennedy is walking away from this empty handed do you? Im sure she saw this coming and prepared herself for the fall, the agents in the other hand werent prepared for the fall, because nobody warn them. OUCH! thats a hard fall.
Comment #92 Posted By: Anonymous 05/25/09
Anonymous
job well done!!!!! Karma is a bitch !!!!! just suck it up :)
Comment #93 Posted By: Anonymous 05/26/09
Andrew J Goebel
I liked CBHK when I worked there (98-05), Jo Anne K, Will H.and David M. were very plesant to work with, as was all of the agents regardless fo the offices they worked in. As this was my first company to work for in Real Estate. I was well trained through Sweat Hogs, a Marketing Course (30 days 30 Listings) and graduated from Coldwell Banker University. Having such a great parent company, Cendant Relocation Services, my paychecks were steady, on time and always cleared the bank. CBHK has never owed me money that I had worked for, unlike JC DeNiro, whom we all know fell apart after Jack started stealing money from "peter to pay paul". ie: manhattan offices for failed florida real estate ventures...
Comment #94 Posted By: Andrew J Goebel 05/27/09
Anonymous
Rutenberg is going to be a household name and a force to be reckoned with as the real estate landscape changes in Manhattan. These big firms are sucking wind as they struggle to pay their leases and continue to cut ad budgets and services to their agents and ultimately the consumer.
Comment #95 Posted By: Anonymous 05/27/09
Anonymous
Forcing agents come in at 8:30 in the morning to practice lame Ferry scripts is not only against the law it's bad karma and bad business..also treating seasoned agents like they are juvenile delinquents and making them go to school with Mr Mother Superior for three months for 8hours a day is not only bad business it's abuse! Good riddance!
Comment #96 Posted By: Anonymous 05/27/09
Anonymous
I love how some people praise Joanne Kennedy. It reminds me how Judas hang out with Jesus but at the end he sold him out. Ms. Kennedy ultimately neglected to tell her agents what was coming, what does it matter how nice she is or was or whatever, in the end she betrayed those who fed her.
Comment #97 Posted By: Anonymous 05/27/09
Anonymous
Hey #97 - you'd be surprised what people will do when they're drowning in debt...
Comment #98 Posted By: Anonymous 05/27/09
Anonymous
1. Joanne Kennedy is an industry veteran that deserves respect for what she has accomplished over the years. The downfall of the company cannot be holey blamed on her, its the entire executive and ultimately the CEO, David Michonski. 2. NYC has several forms of an MLS; OLR, ManhattanMLS, REBNY's RLS and Residential NYC, Streeteasy and others. Remember, the term MLS is a Realtor trademark, which for most parts of the country is very well know and respected. In Manhattan the "Realtor" name is less know and MANAR has only handful of members (500). Contrast this to REBNY, which is the leading industry trade organization in NYC, with something like 15,000 members. I'm waffling here, my point anyway is that listings are shared between brokerages and the exposure (that the typical MLS gives) is there.
Comment #99 Posted By: Anonymous 05/28/09
Anonymous
3. Charles Ruttenberg, has done extremely well with agent recruitment since its launch, kudos. There is a HUGE problem with this company though... they have near ZERO respect in the industry, especially from other brokers. This will be one of the biggest reason for their eventual collapse.
Comment #100 Posted By: Anonymous 05/28/09
Anonymous
4. Ardor, joke! The NYS DOS needs to go through this company with a fine tooth comb... they would have a field day! There are several other firms that also need investigation.
Comment #101 Posted By: Anonymous 05/28/09
Anonymous
5. The RE industry in NYC can be a true profession and rewarding career, you have many very well educated brokers, many with multiple degrees, MBA's, even some with PhD's. Like all industries that have the lure of what appears like easy money, big money, and a flashy lifestyle, the RE Industry attracts a large amount of unethical individuals that end up failing in the industry, and through their actions give the industry a bad name.
Comment #102 Posted By: Anonymous 05/28/09
Anonymous
6. There is a very good chance that a lot of the negative comments on this forum come from disgruntled, failed brokers who have no-one but themselves to blame.
Comment #103 Posted By: Anonymous 05/28/09
Anonymous
Anyone know what the commission structure at CBHK was? Were they traditional 50/50, and then after X in gross commission you went to a higher split? If so, what were the levels? I'm interested to see if they gave too much back to the agent too quickly, and with high overheads ran into trouble.
Comment #104 Posted By: Anonymous 05/28/09
Anonymous
thanks for voting obama
Comment #105 Posted By: Anonymous 05/28/09
Anonymous
hahahahahahaha
Comment #106 Posted By: Anonymous 05/29/09
Anonymous
now what?
Comment #107 Posted By: Anonymous 05/29/09
Anonymous
Sorry to hear it. David and Joanne are very capable individuals. Sort of surprised by the $12,000,000 in debt. Can that be right ?
Comment #108 Posted By: Anonymous 05/29/09
Anonymous
To #99: you DON'T have an MLS in REBNY, because an MLS (a trademarked term, btw, not afforded to non-MLS's) offers oversight. All you have is a vehicle for unethical real estate agents to enter properties...if they feel like it. It's disgusting. Brokers created the greedy, horrible environment; their licensees ARE like monkeys, nodding their empty heads.
Comment #109 Posted By: Anonymous 05/29/09
Anonymous
OMG... #109 your a idiot!.All REBNY members are to follow a code of ethics and standards and practices... just as Realtors are supposed to. Also REBNY Members have to list all exclusives within 24hrs...Not Adhoc as they feel like it. Get your facts straight.
Comment #110 Posted By: Anonymous 05/30/09
Anonymous
NYC does not have a true MLS. If it did Shitty Habitats, I mean Citi Habitats would not be able to enter open rental listings as their exclusives. They do that every day. They instruct their rental agents to do that. NYC needs a true MLS with full transparancy. Too many systems - OLR, RealPlus, Taxi, Limousine etc. - it's ridiculous that there is no consistency. NYC companies need to be part of MANAR, NSAR and NAR. That's something CBHK was fighting for which I hope doesn't die with the company.
Comment #111 Posted By: Anonymous 05/30/09
Anonymous
The Manhattan brokers KILLED CBHK because the stood for transparency. Corcoran's little own Leona Helmsley Jr will see to it that MLS NEVER comes to Manhattan.
Comment #112 Posted By: Anonymous 05/30/09
Anonymous
hahahaha
Comment #113 Posted By: Anonymous 05/31/09
Anonymous
Maybe if a law firm would assist in the antitrust law suit pending against REBNY members Corcoran and BHS on the East End see eastendlistings.com the government could break up the monopoly there so an MLS with oversight could operate. Seems like real estate companies don't want oversight or transparency which runs counter to what the public want. ANDREW CUOMO where are you? REBNY is a fraud. They can not aspire to the REALTOR® Code of Ethics because they are NOT a REALTOR® organization. They were once, but decided to go underground with the sewer rats. Bring on a REALTOR® run MLS in Manhattan and assist the consumer.
Comment #114 Posted By: Anonymous 06/01/09
Anonymous
Ha... REBNY has been around for over 100 years... MANAR... less than 20 years. Maybe you should read the REBNY code of ethics: "available from their website" and get a freaking clue!
Comment #115 Posted By: Anonymous 06/01/09
Anonymous
Link rebny.com/pdf_files/Code_of_Ethics.pdf
Comment #116 Posted By: Anonymous 06/01/09
Anonymous
Missy's smoke has fogged his mirror permanently.
Comment #117 Posted By: Anonymous 06/02/09
Anonymous
to #116 and #115. I have read "their?" code of ethics on line. They stole it from NAR, but unfortunately you can't be a Christian unless you believe in Christ. Can't subscribe to a doctrine you don't own, haven't written, or don't belong to. Is arbitration a requirement of their Code of Ethics. And who's the oversight or "eyes" of the REBNY listing system. Go on line, and discover the truth of the origins of REBNY and their lawsuit with NAR. Look for the big elephants in the room at the same time.
Comment #118 Posted By: Anonymous 06/02/09
Anonymous
Fantastic !!!! This TEXT BOOK Harvard..... on How to fail in Real Estate........... These agents left behind are all damaged from bad management ...!!!!!!
Comment #119 Posted By: Anonymous 06/03/09
Anonymous
CBHK wanted the MLS so they could advertise others listings, they cannot get enough decent ones of thier own. A small number of producers and a bunch oa romper room wannabes
Comment #120 Posted By: Anonymous 06/04/09
Anonymous
Oh hell somene thinks being quoted a lot means you are more legit or respected. I AM QUOTED a lot, and all it means is I can make for fun copy and have a good publicist. And baby, never beleive your own PR!
Comment #121 Posted By: Anonymous 06/04/09
Anonymous
Its very sad that CBHK had to shut down and put out 214 agents out of work. But companies that don't market themselves and don't market their agents are doomed. Real estate is about marketing, Michonski thought the internet was going to give him all the business he needed, but that didn't go too well.
Comment #122 Posted By: Anonymous 06/04/09
Anonymous
Rottenberg... Our brokers have one thing in common... they are the worst in the industry!
Comment #123 Posted By: Anonymous 06/05/09
Anonymous
Without a real mls, not a sharing system funded by appallingly unethical real estate companies, consumers in NYC will continue to get the short end of every transaction. REBNY is garbage, filled to the brim with agents that JUST...DON'T...GET IT. They have proven over and over that they're not consumer friendly; until sellers and buyers dump the self centered brokers entirely, it'll go on and on.
Comment #124 Posted By: Anonymous 06/07/09
Anonymous
#124 You have still FAILED to highlight the difference for the consumer. If someone goes online to look for an apartment, on to an MLS or Listing Database, they view listings, then when there is one they like, they view the listing agents contact info and contact them. ALL the listings on the RLS and ResidentialNYC (both REBNY services) are exclusives and REAL listings. Why so anti-REBNY? You think that if the Realtor brand grows in NYC and they have a comprehensive MLS that the exact same agents from REBNY wont also be MANAR members?
Comment #125 Posted By: Anonymous 06/09/09
Anonymous
so does this mean no more x-mas parties held in the basement of some church on the upper east side???? to bad you did not spend money on your agents
Comment #126 Posted By: Anonymous 06/10/09
Anonymous
#126 spend money on agents? no way! there is no glory in doing that. His first priority was self glorification. It was about ME! ME! ME!. Can't wait to see his new and revised resume praising his accomplishments on this latest fiasco.
Comment #127 Posted By: Anonymous 06/10/09
Anonymous
So if Joanne is so good, why does she not talk to Will Hunt anymore???? Karma is bitch slapping you hard :)
Comment #128 Posted By: Anonymous 06/12/09
Anonymous
Missy's wealth insurance plan came with his marriage certificate, from then on it was bet the farm and he lost the farm.
Comment #129 Posted By: Anonymous 06/18/09
Anonymous
i bet old blue eyes 9 is enjoying an "extended" vacation in Thailand right about now
Comment #130 Posted By: Anonymous 06/26/09
Anonymous
Remember what happens in Thailand stays in Thailand!!!!!!!
Comment #131 Posted By: Anonymous 06/27/09
Anonymous
All i have to say is that the CBHK office on Columbus Ave had the best office admins and front desk personnel!
Comment #132 Posted By: Anonymous 07/29/09
Anonymous
Comment 131, he had lots of fun at his athletic club. Didn't keep his personal proclivities private enough. I feel sorry for his family.
Comment #133 Posted By: Anonymous 08/31/09