Compass shutters Hancock Park office less than a year after it opens

The move contrasts with the Softbank-backed brokerage’s massive expansion, which includes 33 offices in Southern California

Los Angeles /
Sep.September 12, 2019 01:19 PM
Robert Reffkin, Bret Parsons, and the property (Credit: Google Maps)
Robert Reffkin, Bret Parsons and the Compass office in Hancock Park (Credit: Google Maps)

Compass, whose Southern California presence quickly expanded to nearly three dozen offices, has closed its Hancock Park location just a year after opening it, The Real Deal has learned.

The Softbank-backed brokerage shuttered the office at 156 North Larchmont Boulevard, and will consolidate the handful of agents there into the firm’s flagship Los Angeles space in Beverly Hills.

In Southern California alone, the firm has expanded to 33 offices — not including the Hancock Park space — since it opened in Beverly Hills four years ago. Pacific Union intended to open the Hancock Park office in the Keystone Building last summer, to accommodate 20 agents.

But Compass acquired Pacific Union in August 2018 in a blockbuster deal, and coupled with ongoing renovations of the historic building, the opening was delayed until December.

Bret Parsons, former assistant manager at the Hancock Park office who still works at Compass, confirmed the office closure. A spokesperson for the company declined to comment.

The New York-based Compass has been on a nationwide expansion tear, which has seen it grow into one of the largest brokerages nationwide. The venture capital-backed firm, now valued at $6.4 billion, is preparing for an initial public offering.

Compass isn’t the only brokerage in L.A. shedding some office space. In July, sources said Coldwell Banker, one of the most entrenched agencies in the city, is also consolidating its two offices in Beverly Hills into its larger “North Office” on Canon Drive, a move that would relocate about 150 brokers.

The consolidation comes as home sales in L.A. have been slowing, and high-end listings have been lingering on the market. Despite that slowdown, Compass has been actively recruiting and expanding its roster of agents in Los Angeles.

Recently, the firm has poached at least 22 agents and staff from Coldwell Banker alone. Among those 22 were top-producers Chris Cortazzo, who brought 16 agents with him; and Ginger Glass.


Related Articles

arrow_forward_ios
Dana Olmes and Jeffery Biebuyck (Getty, Dana and Jeff Luxury Homes)

This Side up: White label brokerage plucks luxury team from Compass

This Side up: White label brokerage plucks luxury team from Compass
Chris Cortazzo (Credit: Marc Piasecki/GC Images via Getty Images)

One person, three roles: Chris Cortazzo buys $20M Malibu home, serves as agent for both sides

One person, three roles: Chris Cortazzo buys $20M Malibu home, serves as agent for both sides
Nile Niami and his Bel Air spec home (Credit: Araya Diaz/Getty Images, Juwan Li and Marc Angeles)

Compass lending service sues Nile Niami over Bel Air mansion

Compass lending service sues Nile Niami over Bel Air mansion
From left: Tami Halton Pardee, Chris Cortazzo, and Kurt Rappaport (Credit: OGUT/Star Max/GC Images via Getty Images, Joshua Blanchard/Getty Images, and Anne Cusack/Los Angeles Times via Getty Images)

LA’s market makers: A ranking of top resi agents by on-market deals

LA’s market makers: A ranking of top resi agents by on-market deals
Real estate brokerages in Los Angeles and elsewhere have made shifts in their business over the last five months that could be for the long-term.

Survival of the slimmest: TRD looks at the future of the residential brokerage

Survival of the slimmest: TRD looks at the future of the residential brokerage
Kurt Wisner and Robert Reffkin (Credit: Brad Barket/Getty Images)

TRD analysis: How Compass came to dominate one of LA’s hottest neighborhoods

TRD analysis: How Compass came to dominate one of LA’s hottest neighborhoods
Tomer Fridman and Brielle Cohen (Credit: Compass and iStock)

Tomer Fridman hit with lawsuit over commission split

Tomer Fridman hit with lawsuit over commission split
Hiten Samtani, Sally Forster Jones, Santiago Arana, and Aaron Kirman

For top LA resi agents, it’s strictly posi vibes

For top LA resi agents, it’s strictly posi vibes
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...