@properties acquires stake in another Southern resi brokerage

Stake in Virginia’s Nest Realty gives Chicago-based firm 350 more agents and $1.4B in sales volume

@properties’ Thad Wong, Mike Golden and Nest Realty’s Jonathan Kauffmann (@properties, Nest Realty; Seymour Johnson)
@properties’ Thad Wong, Mike Golden and Nest Realty’s Jonathan Kauffmann (@properties, Nest Realty; Seymour Johnson)

Chicago-based indie brokerage @properties has acquired a significant stake in Virginia-based firm Nest Realty, giving it a foothold in five additional states in the South amid an expansion push.

Terms of the deal were not disclosed, but Nest Realty’s leaders Jonathan Kauffmann, Keith David and Jim Duncan will retain an ownership stake in Nest and continue to oversee day-to-day operations, the brokerages said in a joint statement. Nest will also continue to maintain its brand identity in its markets, which include Charlottesville, Louisville and the Triangle region of North Carolina.

The companies pointed to @properties’ tech platform as a launching pad for franchising opportunities, which they said will be a major driver of revenue growth in the upcoming years. Nest, founded in 2008, has 15 offices across the south.

“Over the past 12 years, they have shown they can grow a brand both organically and through effective delivery of franchise services,” said @properties co-founder Mike Golden in a statement. “There’s also a great culture match between our firms.”

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Apart from gaining access to @properties’ end-to-end tech platform, which includes a CRM as well as consumer-facing tools, Nest Realty will also be able to utilize @properties’ marketing system as well as training and coaching programs.

In 2019, Nest Realty claims its franchises tallied $1.4 billion in sales across about 350 agents. The acquisition will surely boost the bottom line of @properties, which stands toe-to-toe with Compass and Realogy franchises in several markets and has grown into the 10th biggest brokerage in America by sales volume, according to RealTrends.

With a wave of consolidation having hit residential brokerage over the last decade, @properties has looked to diversify its product offerings and appeal to independent brokerages across the south and midwest. In 2019, the 2,800-agent brokerage acquired a stake in Ansley Atlanta Real Estate, one of the top brokerages in Georgia. It also struck up a partnership with Guaranteed Rate to launch a mortgage lending arm and acquired a title insurance provider.

In a statement, @properties co-founder Thad Wong signaled more acquisitions to come. “Now is the time to grow,” he said. “Now is the time to focus on relationships and putting the best technology, training and resources into the hands of agents.”