Rapid Realty picks up speed
June 26, 2009 06:30PM By Candace Taylor
Anthony Lolli (Source: Real Estate Executive)
Brooklyn-based Rapid Realty is living up to its name.
The rental brokerage is expanding quickly and will open at least two new offices in the next several months, according to Carlos Angelucci, the company's COO, who said the firm is also in the process of franchising its business.
The company, which currently has offices in Crown Heights and Park Slope, is opening small branches in Bay Ridge and on Northern Boulevard in Queens. The company is also planning to open a Williamsburg office, he said.
In addition, the company, founded in 1998 by CEO Anthony Lolli, is working on franchising, Angelucci said, noting that some of the new locations may become franchisees.
Angelucci did not release the addresses of the new offices, but said the Bay Ridge branch will be located on Fourth Avenue between 95th and 96th streets. The 400-square-foot office will house 11 agents and three staff members. The 25-agent Queens office will be located on Northern Boulevard at 97th Street, between the neighborhoods of Jackson Heights and Corona.
Both offices are expected to open in the next two months, he said.
Such an aggressive expansion seems counterintuitive at a time when companies like the Corcoran Group, Citi Habitats and Warburg Realty are closing offices. But others, like Prudential Douglas Elliman and Halstead Property, see the real estate downturn as an opportunity for expansion, and Rapid Realty is certainly one of them.
The company is doing more rentals than ever before, in part because more New Yorkers are renting rather than buying their homes, Angelucci said.
Rentals at the company are "at an all time high," he said. The company has done 1,425 rental transactions since March, he said, a significant increase from the same period last year, when it did 1,118.
He added that the company's Crown Heights office, which opened in September 2008, is doing unexpectedly well, with more than 70 rental deals per month.
"That office is producing numbers we didn't expect it to produce," he said.
And with retail office rents dropping, he said, it seems like a good time for the company to expand.
"The overhead is so minimal that it made a lot of sense for us to do it," he said of opening new offices. "It's not going to take a long time to turn a profit."
Meanwhile, the company is currently in the process of finalizing the franchise paperwork, and has begun making arrangements with investors, he said.
The company has been looking for a way to expand that would allow greater exposure for its star brokers, who in the past had left the company to start their own firms.
"We needed an alternative for our superstar agents," he said. "We wanted them to be able to expand rather than be our competition."
Other firms, such as Elliman and Corcoran, allow their biggest brokers to form their own teams within the company, a method Rapid Realty considered but rejected, Angelucci said.
"We explored that, but it's more cost-effective for us to go the franchising route," he said, noting that start-up costs for new franchise locations are usually paid by the franchise owners.
The company's ultimate goal is for Rapid Realty locations to open all over the country, like Budget Rental Car or Dunkin Donuts.
"We want to take this thing and go to wherever there is demand," he said.
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Comments
Anonymous
In most parts of the country, brokers aren't involved in rentals. It's done between the owner/renter, and companies that involve themselves do it for a nominal fee. Pipe dreams. Everyone pays for a Dunkin Donut; not everyone pays to have an agent involved in a rental- most consumers figured it out a long time ago. This company won't be national, ever.
Comment #1 Posted By: Anonymous 06/26/09
Anonymous
1425 rental Transactions! How many were refunded back? Lolli invested too much money in this master plan theres no backing out now. PR campaign!!!!
Comment #2 Posted By: Anonymous 06/26/09
Anonymous
I like it. Good news instead of depressing real estate glop.
Comment #3 Posted By: Anonymous 06/26/09
Anonymous
is this a joke?
Comment #4 Posted By: Anonymous 06/26/09
Anonymous
A real estate company that's expanding when everyone else is shutting down? They're obviously doing something right!
Comment #5 Posted By: Anonymous 06/26/09
Anonymous
Speaking from a Landlords point of view i have to say that although the majority of the agents there are young they always fill my vacant apartments. Always!
Comment #6 Posted By: Anonymous 06/26/09
Anonymous
Opening offices in a market like this makes sense because rents are more negotiable than ever. Keeps costs low. I say, if they have the financial where-with-all to do it, more power to them. Better than reading another article about offices closing their doors.
Comment #7 Posted By: Anonymous 06/26/09
Anonymous
Let me guess... We're about to see the usual junk...negative commentary from competitors who seem to only want to bad mouth their competition... as if it's not the most obvious thing
Comment #8 Posted By: Anonymous 06/26/09
Anonymous
Maybe Rapid Realty can buy out some of 3 million-ish failing brokers who are looking for a way out. Convert those losers into Franchisees!
Comment #9 Posted By: Anonymous 06/26/09
Anonymous
Has anyone walked into their 4th Avenue office ever? I walked in there once and I felt like I was on the trading floor of the Stock Market
Comment #10 Posted By: Anonymous 06/26/09
Anonymous
One Word "YELP"!
Comment #11 Posted By: Anonymous 06/26/09
Wacko Jacko
Any agents out there looking to work for a company that has over 100 ACTIVE agents who ACTUALLY MAKE MONEY? Check out their careers page and watch their videos, pretty cool stuff.
Comment #12 Posted By: Wacko Jacko 06/26/09
Green with Envy
One Word "COMPETITOR"!
Comment #13 Posted By: Green with Envy 06/26/09
Anonymous
1425 Rental Transactions in 3.5 Months= Growth Despite Recession Opening Up Multiple Offices= Growth Despite Recession Forcing the Competition To Resort To Dirty Tactics To Try and Catch Up= PRICELESS!
Comment #14 Posted By: Anonymous 06/26/09
Elliman Groupie
1425 Rental Transactions? Thank god they're not involved in sales. Or else a lot of us would be looking for jobs.
Comment #15 Posted By: Elliman Groupie 06/26/09
Franchising?
In 1999 a little known company called EXIT REALTY based out of Canada decided to Franchise and years later...they now have over 2000 offices. Maybe it's not such a flawed expansion plan after all
Comment #16 Posted By: Franchising? 06/26/09
Cameron
If you are looking to work with a real estate company that operates at a stock market trading floor pace, contact me at 4th Ave to set up an interview.
Comment #17 Posted By: Cameron 06/26/09
Anonymous
The truth is that rentals is in. Lets watch them over the next 3months to see how they do. I feel that negative comments root from personal matters. From an objective, business view the Broker seems to be a determined, intelligent man who is taken this company in the right direction.
Comment #18 Posted By: Anonymous 06/26/09
Anonymous
Your right one bad apple can spoil the bunch.
Comment #19 Posted By: Anonymous 06/27/09
Anonymous
Franchise = pyramid
Comment #20 Posted By: Anonymous 06/27/09
sarah
I just finished watching all the videos on rapids careers page. They should consider doing a real estate reality show.
Comment #21 Posted By: sarah 06/27/09
Anonymous
Good for them. However, expanding so aggressively in a market that is becoming increasingly competitive is a dangerous move. "Rentals are in" which means that you'll be competiting with everyone, including some of the best who wouldn't waste time with rentals a year ago. Commissions could come under pressure. Congrats if they pull it off.
Comment #22 Posted By: Anonymous 06/27/09
Y.V.
That's right papa you make it happend. Congrats and the best of wishes!
Comment #23 Posted By: Y.V. 06/27/09
Anonymous
Rapid Realty should buy Corcoran Group from NRT!
Comment #24 Posted By: Anonymous 06/27/09
Anonymous
1425 rentals they have enough to pay rent, Franchise fees and other daily, monthly debt?
Comment #25 Posted By: Anonymous 06/27/09
Anonymous
Why not take advantage of a down commercial market and open smaller boutique offices if the market can support it? Sounds smart.
Comment #26 Posted By: Anonymous 06/27/09
Anonymous
Seems like the negative commentators are suffering from fundzalow disease.
Comment #27 Posted By: Anonymous 06/27/09
Anonymous
i tried to rent an apt from this company about a month ago; not only did they have 0 knowledge of the market, they tried showing me 3 apartments I already had seen for HIGHER prices and then denied it when I told them I had already seen them!!! The staff there are horrific and should try selling used cars instead.
Comment #28 Posted By: Anonymous 06/27/09
Mr. Sue Happy aka Payback is a Bitch
Imagine how much money this company can make if they: 1. Hired an Internet Defamation attorney 2. Subpoena The Real Deal for the IP addresses of the anonymous commenters 3. Identified the commenters as other competitors/brokers 4. Filed a lawsuit for Internet Defamation and Unfair Competition 5. Make an example out the companies that are badmouthing them by making them go bankrupt from all the legal defense expenses 6. Had The Real Deal write an article about them winning a lawsuit against their competitors 7. Laugh all the way to the bank! ....I bet the money would be in the millions...
Comment #29 Posted By: Mr. Sue Happy aka Payback is a Bitch 06/27/09
Y.V.
Me too.
Comment #30 Posted By: Y.V. 06/27/09
BringOutTheBigGuns
Comment#36 definitely the way to go. Can't wait to see outcome.
Comment #31 Posted By: BringOutTheBigGuns 06/27/09
Anonymous
#38, nice poem.
Comment #32 Posted By: Anonymous 06/28/09
Shelly
Hi Everyone, I rented an apartment from Rapid Realty and I had no problems. Everyone was nice and they walked me through every step of the way. The office was definitely 'different' but it was nice. I see what you mean about the stock market vibe there, but in all reality, this is New York and I suppose you pretty much have to be that way to move up in the world. I think it's great that they are expanding because from the looks of their office, they could use some more space. I wish them all the best of luck!
Comment #33 Posted By: Shelly 06/28/09
Anonymous
I am a broker- not rental- and not sure why everyone is so sour on these guys. I say good luck to them
Comment #34 Posted By: Anonymous 06/28/09
Anonymous
#25 I love the videos. New fresh look. We need that in this market.
Comment #35 Posted By: Anonymous 06/29/09
Anonymous
I didn't have a great experience with rapid, but they were the best and found me a place, I had the help of about 5-6 other companies in the area and their services were terrible. I hate renting, period.
Comment #36 Posted By: Anonymous 06/29/09
Anonymous
To set the record straight, EXIT Realty has over 1300 franchises sold, not 2000.
Comment #37 Posted By: Anonymous 06/29/09
Anonymous
All the posts from the people working for this company are well and good, but rather than blowing smoke here, I'd like to know something of substance-- HOW MUCH DID YOU PAY FOR THIS RIDICULOUS ARTICLE?
Comment #38 Posted By: Anonymous 06/29/09
Anonymous
My clients (rentals) complain about Rapid incessantly but they do have lots of listings - if they could clean up their act probably dominate the market. Brooklyn is completely and totally fragmented - I feel sorry for renters trying to navigate the hunt - and if someone can get a hefty chunk of market share they will definitely do well, but again, gotta run a tighter ship.
Comment #39 Posted By: Anonymous 06/29/09
Anonymous
Rapid found me my latest apartment, and I have to say they did a good job. It was a positive experience as far as these things go. I mean, they are salesmen. But I did get a place I really like for a good deal.
Comment #40 Posted By: Anonymous 07/06/09
Darci
"Rapid" is right :). They found me my Brooklyn apartment in a day. You can complain about the service, but what do you expect from real estate?
Comment #41 Posted By: Darci 07/08/09
BigMal
I used to sell real estate, and I hate to say it but Rapid is good at what they do.
Comment #42 Posted By: BigMal 07/08/09
Anonymous
Rapid does a good job making sure nobody gets the rental before you do. At least that was my experience.
Comment #43 Posted By: Anonymous 07/08/09
Anonymous
rapid is way more helpful than anyone else i've worked with and i've moved more than any person i know (srsly)
Comment #44 Posted By: Anonymous 07/09/09
Anonymous
Huh this is Funny i didnt know being the Bad guys would come with rewards check out the reviews about Rapid realty on Yelp.com
Comment #45 Posted By: Anonymous 07/15/09
Anonymous
I think people only post reviews of realtors (and lawyers, probably) if they have a complaint. People will praise a restaurant, but they won't sign online to praise the guy who sold them a house or did their taxes or whatever. Anyway, this company was good to me.
Comment #46 Posted By: Anonymous 07/16/09
Anonymous
A class all the way!!!
Comment #47 Posted By: Anonymous 10/15/09