Compass shutters second LA office
The brokerage is closing 1 of its 3 locations in Brentwood
Compass has shuttered one of its Brentwood offices, the second Los Angeles location the firm has closed in as many months.
The SoftBank-backed brokerage — which has been rapidly expanding in Southern California — had three locations in the affluent Westside neighborhood.
Compass said it would cease operations at 11726 San Vicente Boulevard, which had 61 agents. The group is moving into the larger location, at 11601 Wilshire Boulevard, which has 114 agents. The company will also keep its office at 11999 San Vicente Boulevard, less than a half-mile from the one that closed.
In a press release, Compass broadly explained the closing as a “strategic union of two of its three Brentwood offices.” A source close to the firm said there would be no layoffs resulting from the consolidation.
In September, the residential brokerage closed its Hancock Park office less than a year after it opened. Agents at that office — which Pacific Union had intended to move into until Compass acquired it in a blockbuster deal — relocated to the Beverly Hills space.
Compass, which entered the L.A. market in November 2015, now has 32 offices in Southern California. It has made splashy additions to its roster of L.A. agents in the past year. In August alone, it poached Chris Cortazzo and Ginger Glass from Coldwell Banker, along with 20 other agents and staff. In August 2018, it acquired Pacific Union, which was one of the largest brokerages on the West Coast.
But in early January, Compass announced it would not expand into new markets this year. The firm in July was valued at $6.4 billion after a $370 million funding round, but more recently has seen a string of notable departures. Still, it has not deviated from its stated goal of a 20 percent market share in the 20 biggest U.S. markets by 2020, which it calls its “20/20 by 2020” plan.