Roth-Sporn Group leaves Elliman to start firm targeting foreign buyers
November 17, 2009 06:00PM By Candace Taylor
Mickey Roth
Roth and Sporn, formerly partners in the Roth-Sporn Group, parted ways with Elliman two weeks ago and are in the process of launching Park River Properties, which will focus on organizing international buyers into purchase groups for new development condominium units.
The new company, temporarily headquartered at 117 East 57th Street, is slated to formally launch in January, Roth told The Real Deal by telephone today. The company currently has three employees in addition to Roth and Sporn, including two based in Israel, where they expect to recruit most of their buyers at first, he said.
"This is a unique concept and something we're very excited about," Roth said, adding that a couple members of Elliman's Roth-Sporn group, which previously had four members, have joined the venture.
Roth and Sporn, both Israel natives, met as agents at Citi Habitats. Six years ago they moved to Elliman, and by 2007, the Roth-Sporn Group was Elliman's fifth-highest grossing sales team. That year, the two decided to join forces with Ilan Bracha to create a 15-agent super group. In 2008, that group had the most transactions of any at Elliman. But the partnership was short-lived, and in November 2008, Roth and Sporn parted ways with Bracha.
Now, they've left Elliman completely, which Roth said was necessary to pursue their vision.
"It would have been much more complicated to do it with Douglas Elliman," said Roth, formerly an executive vice president at Elliman. He added: "We really loved working there. It was a great company."
Park River Properties is based on the concept of purchase groups, which are very common in Israel but rare here, Roth said. The idea is that Park River will find a number of international homebuyers interested in purchasing condos in New York, and then negotiate a group price for them with the developer of a new building. Unlike a bulk sale, where an investor purchases a large number of units at a deep discount, each of the apartments will be sold to individuals, who will use them as a pied-a-terre or rent them out, Roth explained. But because they are buying as a group, Park River will be able to negotiate a better price than if they had bought individually.
"We're basically organized end-users," Roth said. "It's like buying at a wholesale club compared to buying at a regular supermarket."
While developers often avoid bulk purchases because banks won't underwrite mortgages in buildings where too many units are owned by one investor, purchase groups don't have that effect because each unit is owned individually, Roth said.
"This is not something that is going to hurt the building," he said.
Park River will also help buyers obtain financing through Israeli banks, Roth said.
He felt the time was right for the venture because "the prices in New York started to become attractive to foreign buyers," he said, especially with favorable exchange rates. While the venture will first focus on Israeli buyers, "we are working to establish the same concept in other countries," he said, including Germany and parts of South America.
He said he and Sporn are in the process of approaching New York developers about group purchases.
"Every developer we've talked to is very open to it," he said, but noted that he could not cite any by name. The developments they are interested in must have specific qualities, he noted; international buyers, many of whom are investors, often look for different qualities than local buyers. First, the buyers must be easily able to rent the units, Roth said, and are often looking for amenity-rich buildings in Midtown and other locations that are close to tourist sites.
The venture is one of several new business models that have arisen in New York City in the midst of the real estate downturn.
Roth said he and Sporn will continue to work on individual deals at Park River Properties, and expect to announce several new developments the company is representing.
Roth said he is still working with several of the clients he had at Elliman. For example, the duo is continuing to market 55 sponsor units at 370 East 76th Street as a $26 million bulk purchase.
Dottie Herman, president and CEO of Elliman, was not immediately available to comment on the Roth-Sporn Group's departure.
"They're good guys who have worked very hard for several years," said Tamir Shemesh, a managing director at Elliman. "They believe they found a niche."
When asked if the venture is likely to succeed, Shemesh said: "They have been successful throughout the years, so I don't see a reason why they wouldn't be successful now. But it depends on the market."
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Comments
Anonymous
Interesting concept. How are apartments delegated to each individual investor? Get the website going and people will follow. Don't know you guys but definitely worth a shot.
Comment #1 Posted By: Anonymous 11/17/09
Anonymous
The guys make more deals than most brokers I know. Good luck to them.
Comment #2 Posted By: Anonymous 11/17/09
Anonymous
Agents that have plans to jump ship or abandon the ship altogether prepare these moves in advance, such as having a new company website where to hang their exclusives while they pursue “foreign buyers” . What do you say to your current sellers, developers about losing the Elliman.com exposure all of a sudden and then nobody can find you or your listings anywhere on the WEB. There’s more than meets the eye here, almost like they were forced out of the company, which being as sleazy as they are doesn’t come as a surprise, I don’t know who is buying this version of events PLUEZZZZZZZZZZZEE
Comment #3 Posted By: Anonymous 11/17/09
Anonymous
That last comment is completely insane. Which buildings are they gonna go after???
Comment #4 Posted By: Anonymous 11/17/09
Anonymous
"It would have been much more complicated to do it with Douglas Elliman," said Roth. Don't understand that one.
Comment #5 Posted By: Anonymous 11/17/09
Anonymous
Good luck to you guys!
Comment #6 Posted By: Anonymous 11/17/09
Why would you leave before the end of the year and not recognition as one of the top 10 at DE for this year?
Comment #7 Posted By: 11/17/09
Anonymous
The nice words roth said about elliman shows they have respect and didnt forgot who gave them the big jump! Good Luck
Comment #8 Posted By: Anonymous 11/17/09
Daniel
MAZAL TOV!
Comment #9 Posted By: Daniel 11/17/09
Anonymous
corcoran up elliman down
Comment #10 Posted By: Anonymous 11/17/09
Anonymous
its all about lenny, he knows the business!
Comment #11 Posted By: Anonymous 11/17/09
Medusa
Seems like everyone who had a negative comment about them preferred to remain 'anonymous'. I am thinking of referring foreign clients to them - is there are anyone who has anything real to add to the talkbacks and not stay anonymous?
Comment #12 Posted By: Medusa 11/17/09
1641 third avenue
the sold my 1br apartment in 10 days congrats
Comment #13 Posted By: 1641 third avenue 11/17/09
Anonymous
I used to work at the Roth Sporn Group, I know what the two are capable of, and im sure Lenny and Mikey will be succesfull with the new company
Comment #14 Posted By: Anonymous 11/17/09
Anonymous
dont believe in agents from de or corcoran that are starting there own company's
Comment #15 Posted By: Anonymous 11/17/09
Anonymous
good luck Lenny, your the best!!!
Comment #16 Posted By: Anonymous 11/17/09
Anonymous
they shouldnt end like ilan bracha who opend his company and after few months came back to elliman
Comment #17 Posted By: Anonymous 11/17/09
Anonymous
no doubt that they will be more successful than ever, if they would have stayed at elliman, they would have won the awards. The only group who did transactions there...
Comment #18 Posted By: Anonymous 11/17/09
Anonymous
I am always going after foreign buyers in the middle east and Europe in fact traveling to istanbul to bring players back to NYC and I never had to leave my company to do such a thing, and please if you are going to post your thoughts on the matter make sure you can spell, these guys Roth and Sporn cant sell this story their fellow brokers. You were pushed out and that is that, good luck your new enterprise
Comment #19 Posted By: Anonymous 11/18/09
Anonymous
why should they split the commission with DE ? great move!
Comment #20 Posted By: Anonymous 11/18/09
Anonymous
tell them to bring it on happy to wrestle with any of the two
Comment #21 Posted By: Anonymous 11/18/09
Anonymous
Good for them. There is no reason for established brokers to remain under the money drain of a large brokerage- the internet has leveled the playing field. The smart brokers are seeing this, and if these guys are successful, will be a signal for many others to get out from under an entity that provides less that their own company will.
Comment #22 Posted By: Anonymous 11/18/09
Anonymous
one word: Shvo
Comment #23 Posted By: Anonymous 11/18/09
Anonymous
I don't work there. but I have noticed that whenever a group within the company "brands" itself as a seperate group within the company, they wind up leaving....... sounds like the concept needs to be rethought at the management level. just my two cents.
Comment #24 Posted By: Anonymous 11/18/09
Anonymous
stop posting on here mickey and lenny
Comment #25 Posted By: Anonymous 11/18/09
Anonymous
# 33 thats far from the truth,Bracha, Shemsh, Teplitzky, Steinberg brand themselves as a separate group and theyre very successful, these two specially Roth was the nastiest scavenger I ever came across and as you can see bad karma, bad vibes do come as a boomerang
Comment #26 Posted By: Anonymous 11/18/09
Anonymous
What they sent around came around. The day finally came when PDE couldn't make excuses for their behavior anymore: Cutting in on deals, stealing other brokers clients, etc. - no level was too low for them to go -- just as long as they got the deal. Good luck with those low-balling foreigners, guys -- you're going to need it.
Comment #27 Posted By: Anonymous 11/18/09
Anonymous
These guys are deal closers. They sold my girlfriends place in 2 weeks in 2009. Good luck fellows, HSBC loves you.
Comment #28 Posted By: Anonymous 11/18/09
Anonymous
Unworkable business model. Getting a group of buyers together to agree on a building and the individual apartments in that building that each buyer will purchase, much akin to herding cats.
Comment #29 Posted By: Anonymous 11/18/09
Anonymous
# 30 thanks for posing the question to yourself, YES YOURE A MORON
Comment #30 Posted By: Anonymous 11/18/09
Anonymous
As far as PDE, what in the hell did they keep them on for, if they were that horrible? Doesn't say much about PDE, that argument.
Comment #31 Posted By: Anonymous 11/18/09
KNOW THEM SINCE CITI-HABITATS
GOOD LUCK GUYS, SOUNDS INTERESTING!
Comment #32 Posted By: KNOW THEM SINCE CITI-HABITATS 11/18/09
Anonymous
why would anyone wnat to take on the expense ( both in time and dollars) of office space, staff, paying a web designer and web master etc. Makes no sense.
Comment #33 Posted By: Anonymous 11/18/09
Anonymous
33, for the other half of the fees thats why
Comment #34 Posted By: Anonymous 11/18/09
Anonymous
#33 What do you think "the other half of the fees " pay for ? Do you think office space is free ? Admin pople work for free ? Web designers and Web masters work for free ? Office machinery is leased for free ? It costs $$$ to start, run and maintain an office and web presence properly. I seriously doubt they will come out ahead on this on.
Comment #35 Posted By: Anonymous 11/18/09
Anonymous
#37 LOL, that's hilarious. good one.
Comment #36 Posted By: Anonymous 11/19/09
Anonymous
I like the idea of getting a group of Israelis to agree on something. Perhaps they can negotiate peace in the middle east. The only problem is they would want to do it while continuing to sell new developments to settlers in the West Bank!
Comment #37 Posted By: Anonymous 11/20/09
Anonymous
A great deal of chatter on here from people who know not of what they speak. The big picture here is that you are going to see more and more top producers defect from the larger companies because those big "brands" provide no added value to those agents OR the consumer for that matter. The consumer is indeed figuring this out and unless the big 3 change there business model and fast, they will continue to bleed dollars and productive agents. Everyone better start focusing on really providing the consumer with superior service as opposed to trying to control information or they will go broke.
Comment #38 Posted By: Anonymous 11/21/09
Anonymous
they are such a Shvo wannabe! Lets see how long it will take these two to fall flat on their faces. leaving Elliman-big mistake. those that leave the mothership are never heard of again.
Comment #39 Posted By: Anonymous 12/02/09
Anonymous
i heard they were cutting deals behind Elliman's back and got caught with their pants down. Targeting ISraeli clients is only a hint of what is yet to come. Good luck you two, you will need it! hope these two have strong legal presentation. would love to hear what went down with elliman! #39- you are so right-they are such Shvo wanna-be's. Probibly got thrown out as he did.
Comment #40 Posted By: Anonymous 12/02/09
Anonymous
"Lets Shvo"-meaning- lets dress up in a fancy suit, empty out an entire bottle of hair-gel on our head, adopt that "we know it all and full of yourself attitude" and then head forth to screw over our mother-company by stealing away business.
Comment #41 Posted By: Anonymous 12/02/09
Anonymous
Interesting concept that seems to have some real potential. These guys killed it at Elliman and for that alone I respect them. Best of luck. PS why is it that Israelis dominate residential RE....anyone???
Comment #42 Posted By: Anonymous 12/10/09
Anonymous
Cause we are the best silly.
Comment #43 Posted By: Anonymous 01/19/10