UPDATED, April 13, 5:30 a.m. ET: A Canadian brokerage is betting that one road to becoming a global player in the luxury market runs from Huntington Beach to San Diego along Southern California’s coast.
Toronto-based Peerage Realty Partners has taken a partnership interest that it called “substantial” in luxe real estate brokerage Pacific Sotheby’s International Realty, which works with 620 agents in coastal markets in Orange and San Diego counties. Peerage didn’t disclose terms in the deal, while some observers speculated that it got a majority stake.
Miles Nadal, Peerage’s founder and executive chair, said that his company decided to link with a franchise in Southern California’s coastal market as part of its plan to grow into a global luxury real estate services company.
“If your aspiration is to build a global luxury real estate services company, there are a few markets that are critical [and] Southern California is at the top of the list,” Nadal said.
Peerage plans to continue growing organically and through acquisitions, Nadal said.
Sotheby’s Pacific’s CEO Brian Arrington and president and COO Wendy Purvey will continue to lead the California’ realty’s senior management team.
Arrington said the partnership will bring new capital and resources to his firm.
“Coming off of one of the best real estate markets in history, has bought consolidation opportunities around the country, and none more so than right here in the extremely desirable footprint of Orange County and San Diego,” he said in a prepared statement,
In 2021, Pacific Sotheby’s International Realty had $6.8 billion in sales.
Along with its new deal in California, Peerage also has interests in Sotheby’s International Realty Canada, which works with 690 agents; Briggs Freeman Sotheby’s International Realty with 381 agents in North Texas; Cascade Sotheby’s International Realty with 400 agents in Oregon and South Washington; Sotheby’s International Realty with 320 agents in Vermont, New Hampshire and New York; and Jameson Sotheby’s International Realty with 460 agents in the greater Chicago area.
Nadal said that by 2023, his company’s goal is to sell $80 billion in residential real estate annually.
CORRECTION This story has been updated to include Wendy Purvey’s title of president of Pacific Sotheby’s International Realty.