Another day, another brokerage deal.
Compass is growing its Washington D.C. presence with the acquisition of Wydler Brothers Real Estate, Inman reported. Terms of the acquisition were not disclosed.
The deal brings Compass’ agent count in D.C. to more than 500 agents. That represents almost $3 billion in sales volume this year, the report said. Since it was founded in 2016, Wydler Brothers has grown to more than 50 agents and $400 million in sales volume.
Compass first entered D.C. in 2014. Since then, Compass has acquired brokerages from coast to coast and is now targeting $1 billion in revenue. Among them was the blockbuster deal to acquire Pacific Union International Realty, one of the largest brokerages on the West Coast, with $14 billion in sales last year.
In D.C., the company will be competing against Berkshire Hathaway HomeServices PenFed Realty, which closed more than 14,000 transactions in 2017, according to Inman. Other competitors include Century 21 New Millennium, Keller Williams Capital Properties, TTR Sotheby’s International Realty and Washington Fine Properties.
Earlier this year, CEO Robert Reffkin said Compass, which was valued at $4.4 billion in September following a $400 million Series F round, pays between four and six times a firm’s annual pre-tax earnings when making an acquisition.
Compass has become known for aggressively recruiting agents and offering attractive compensation packages. Among the perks is the brokerage’s Agent Equity Program, which allows agents to invest a portion of their earned commissions in stock options. More than 1,000 agents have invested a portion — or in some cases, all — of their commission dollars into stock options totaling more than $20 million, the company said this month.
Nationwide, Compass has more than 7,000 agents, including some 1,400 in New York City. [Inman] — Meenal Vamburkar