Level Group has merged with Oxford Property Group effective last week, The Real Deal has learned.
The deal brings the total number of agents operating under the Oxford umbrella to nearly 1,000, with the vast majority operating in New York City, according to Level Group Co-Founder and President Larry Link — and the combined company is looking for more firms to absorb.
“We’re actively on the hunt for other companies,” Link said, adding that the company is interested in acquiring both residential and commercial brokerages.
Link, who’s staying on as president of the new conglomerate, declined to disclose the financial terms but said there will be no layoffs associated with the merger. The company has hired Bryan Schaffer, previously of Engel & Volkers, to head mergers and acquisitions.
The acquisition comes two years after Oxford Property Group bought brokerages Spire Group and Kian Realty. By headcount, the new merger makes Oxford-Spire-Level the sixth largest firm in New York, with 814 brokers, according to data collected in December by The Real Deal.
“This merger underscores Oxford-Spire’s commitment to being the largest and best brokerage company in New York City with a stated goal of finally giving agents the proper compensation for the hard work they do as entrepreneurs and independent contractors,” Oxford-Spire CEO and Founder Adam Mahfouda said in a statement.
The company’s brands will continue to operate under their current names and licenses but will continue under the same corporate umbrella and share internal infrastructure, according to Link.
Link said the merger was first discussed in 2016 but was set aside while he and Level Group Co-Founder Michael Greenberg grew the development side of the company. Greenberg’s death last September was one of several factors that led to the merger happening now. Another was the calculation that greater scale would allow the firm to better support its brokers.
“I wanted to be able to offer more tools to staff and agents but we were constrained because we didn’t have enough size to be able to pay for those things, frankly,” Link said.
The merger combines two of the largest 100-percent-commission firms in the area. The model allows brokers to pay a $495 monthly fee and in exchange keep all of their commissions, or pay $99 per month and pay a 10 percent split with the brokerage.
“For productive agents it’s a no-brainer,” Link said.