Corcoran's Liebman dispels CBHK merger rumor
May 22, 2009 10:00AM By Candace Taylor
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.
NRT is a subsidiary of Realogy, which also owns international real estate company Coldwell Banker. But Realogy, not NRT, operates Coldwell Banker franchises such as Coldwell Banker Hunt Kennedy.
Meanwhile, industry leaders expressed sadness and surprise over the shuttering of CBHK, which sources said will close its doors within 60 days.
"What's shocking to me is that the whole thing is gone so quickly," said Bruno Ricciotti, a principal at Bond New York. "You never know who's going to be next."
The 214-agent company, founded in 1988 by Kennedy and William Morris
Hunt III, is the largest of the city's brokerages to close its doors
since the current real estate slump barreled into New York City after
the Lehman Brothers collapse this fall.
Experts said CBHK was weakened by its reliance on the Manhattan sales market, which has slowed considerably in recent months, since it did little rental business.
"The business model that [CBHK] has -- solely sales -- doesn't work when there's 50 to 60 percent less transactions happening," said Marc Lewis, the president of sales and rentals firm Century 21 New York Metro. "If you can't keep your overhead low, it's very hard to make money."
While Hunt and Kennedy, who got their start at Stribling & Associates, were skilled brokers, the company may have suffered from their association with a national company, experts said.
"They were great brokers here," said Elizabeth Stribling, the president of Stribling. "I was very proud that they could go on to found their own firm. I'm sad it hasn't been able to continue."
But the company "changed when it was acquired by a national firm," Stribling said.
Michele Kleier, president and chairman of Gumley Haft Kleier, said that she was surprised when Kennedy, who she has known for years, became part of Coldwell Banker.
Kleier said she, too, has been approached by big firms over the years, but she always said no because it meant ceding control. "We can control our own overhead," she said.
The closure is an ominous sign for the industry.
"It's sad for the industry to lose a good competitor," she said. "It shows how tenuous this industry is."
Still, she said she is confident Kennedy and other CBHK alums will land on their feet.
"I'm sure they'll figure it out," she said, "and I hope to do business with them in the future."
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Comments
Anonymous
How horrible to be stuck going to Corcoran- hope the "just say NO".
Comment #1 Posted By: Anonymous 05/22/09
Anonymous
you're right you never know who's going to go next
Comment #2 Posted By: Anonymous 05/22/09
Anonymous
Of course realogy and corcoran are being very cagey about ms. Kennedy and her agents being absored into another of their holding companies, they want to maintain the illusion of seperate corporations so they can walk away from $12M in unpaid bills. THis industry is littered with unethical scum. No wonder the general public despise us.
Comment #3 Posted By: Anonymous 05/22/09
Anonymous
Most interesting will be where Patrick Lilly and Stan Ponte wind up.
Comment #4 Posted By: Anonymous 05/23/09
Anonymous
# 5 I am losing sleep over your question
Comment #5 Posted By: Anonymous 05/23/09
Anonymous
#1 - In fact we do know who will be next, so merging Corcoran &with CBHK would be like merging the Titanic with the Andrea Doria.
Comment #6 Posted By: Anonymous 05/24/09
Anonymous
As a CBHK victim, why would any CBHK broker run to Corcoran? Haven't we all had enough of Realogy, who played with our careers (and our lives) like we were their toys? It's public information that Corcoran is not a bastion of stability -- In fact they are a disaster in the making. I encourage all my CBHK colleagues to take their license over to a debt-free company -- if they don't want history to repeat itself.
Comment #7 Posted By: Anonymous 05/24/09
Anonymous
perhaps they can get a Feeral bail out like everyone else
Comment #8 Posted By: Anonymous 05/24/09
Anonymous
Corcoran was fun when Babs was running it, now is just a name
Comment #9 Posted By: Anonymous 05/24/09
Anonymous
At what point did Joanne Kennedy realize that CBHK was failing? And why did she wait UNTIL THE LAST MINUTE to inform her brokers? Surely she's known about the impending doom for several months, so how could she betray her loyal brokers like that? Can they trust her to follow her to Corcoran, or anywhere?
Comment #10 Posted By: Anonymous 05/24/09
Anonymous
It appears to be a risk to go anywhere these days. Who knows who is the next to fall? Maybe its time to go independant? Even Babs seems to think so! Who needs the corporate bigwigs? We know how to sell!
Comment #11 Posted By: Anonymous 05/24/09
Anonymous
Don't misunderstand JK's responsibilities... it's to the shareholders not her brokers. Sound like a bit of a conflict, but isn't that the case with all these companies? Big or small, self-owned is the way to go!
Comment #12 Posted By: Anonymous 05/24/09
Anonymous
I agree with # 11 and # 13 She probably knew all along and kept quiet since her responsibilty wasnt with the agents. So all those who called this lady a mother theresa, should think again, Ok so the company is going out of business and we should feel bad for her, what about the agents, thier commissions, their listings, their hard work, their reputations with the sellers.
Comment #13 Posted By: Anonymous 05/24/09
Anonymous
It's not a risk to work for a debt-free company. Brown Harris Stevens & Halstead are debt-free.
Comment #14 Posted By: Anonymous 05/25/09
Anonymous
Hey No 13, wait just a minute: Joanne Kennedy had no responsibility to her brokers? Loyal, hard-working brokers who put their careers & reputations in her hands? Is JK not morally obligated to them??? So, when it was obvious that the CBHK franchise was tanking, she was right to keep her mouth zipped until the place closed? How lovely that JK found such a supporter as you, but those loyal CBHK brokers were betrayed BIGTIME by JK's sneaky behavior, and they would be fools to follow her to another Reology company -- where the same writing is on the walls.
Comment #15 Posted By: Anonymous 05/25/09
Marc Lewis
#4 you obviously have an ax to grind. In the past 72 hours some of the rental commissions we have generated are $11,700,$8,500,$9500,$7,200,$6200 and so on. Does this sound like "tenement rentals" to you. If you have something to say to me I suggest you call or email me personaly and perhaps I can suggest a good shrink or anger management group for you.
Comment #16 Posted By: Marc Lewis 05/25/09
Anonymous
Temper, temper!
Comment #17 Posted By: Anonymous 05/25/09
Anonymous
I am a CBHK broker with a listing..What are my options? If I don't go to Corcoran then I lose my listing? I would rather go elsewhere than Corcoran...advise anyone?
Comment #18 Posted By: Anonymous 05/25/09
Anonymous
CBHK Broker: Wouldn't the listing be null and void because CBHK doesn't exist anymore? Your seller could argue that he/she signed up for an international firm, which Corcoran isn't. Several agents leave companies with listings. Hang in there!
Comment #19 Posted By: Anonymous 05/25/09
Anonymous
CBHK you should go for advice to those who are praising Joane Kennedy and telling the world she is a saint, perhaps they know what you should do, since they seem so altruistic, maybe they can reach out to you, I wonder if their will to help is as big as their mouths.
Comment #20 Posted By: Anonymous 05/25/09
Anonymous
#21 When you signed up your listing did it in any way say "should CBHK close its doors this listing automatically becomes the property of wherever Joann Kennedy ends up..including Corcoran"? I didn;t think so. How can you be so uninformed. You have the right to take that listing with you. Speak with any real estate lawyer that is trustworthy to you. I am an agent but I always had good friends in good places. You owe yourself the right to check this out before you go from a life boat into the Titanic. Survivor of Corcoran (SOC).
Comment #21 Posted By: Anonymous 05/25/09
Anonymous
I have seen other agents take listings with them, so don't worry, I am sure something will work out well for you.
Comment #22 Posted By: Anonymous 05/25/09
Anonymous
#21: I recall reading, when Foxtons went under, that their listings were assigned to one company that finished them up. What will happen is an unknown, so I'd agree with the above, and have your sellers immediately contact CBHK (whoever's left) to insist that the agreements be cancelled- CYA, and be quick about it! Good luck.
Comment #23 Posted By: Anonymous 05/26/09
Anonymous
Does Corcoran really need more unsellable listings anyway? Dont we actually need buyers to buy listings right now?
Comment #24 Posted By: Anonymous 05/26/09
Anonymous
# 26 sounds like an ass kisser to me. Bottom line is is Joanne Kennedy knew what was about to happen, she owns part of the company and by neglecting to share the information with her agents and giving them an opportunity to go elsewhere, she demonstrated she didnt care one bit, you cant possibly be working at a company as a high executive and not know whats going on, so #27 go sniff some ass somewhere else
Comment #25 Posted By: Anonymous 05/26/09
Anonymous
Why do all of you agents think you need to listen to the big cheese all the time for guidance? Does Pamela Liebman make sense? No. Why then should Joanne Kennedy or anyone else? You are adults and free to go where you want stay in teh industry, leave the industry, whatever. No individual will ever do more for you than yourself. If busines continues to nosedive than get a job elsewhere for a while. Their stuck to go down not you that is why you are an agent. Hello?
Comment #26 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 #27 Posted By: Anonymous 05/27/09
Anonymous
#19- where your listing goes is ultimately up to the owner
Comment #28 Posted By: Anonymous 05/28/09
Anonymous
i wish all the agents at CBHK best of wishes. i would suggest they all try to go to firms that have sustainability. ask the new owner/manager direct questions. And learn how to do rentals! these are crazy times...
Comment #29 Posted By: Anonymous 05/29/09
Anonymous
Pam needs to come clean and realize that JK and some of her agents are on the way. This should increase the the difficult that is stirring at Corcoran. Realogy has big financial issues ad the pressure is n NRT and the companies they run to trim down and contract. If the market continues to decline (economist say more trouble is on the way) then the large RE companies in Manhattan will fill the pain of decreasing profits along with big overhead.
Comment #30 Posted By: Anonymous 06/01/09
Anonymous
I like that we are Debt Free and Privately owned. I am at Halstead and our other Division BHS is the same way. As far as listings go, they are signed with an agency and since the agency is NOT being merged with Corcoran as they are very clear on (to avoid that $12M Bad debt) then the agency is no longer functioning and those listings are up for grabs. CBHK agents take them with you.
Comment #31 Posted By: Anonymous 06/04/09
Kelly Brown
The article is ver good. Write please more
Comment #32 Posted By: Kelly Brown 06/12/09