After axing its ties with embattled franchise Corcoran Global Living, the Corcoran Group announced a new agreement with an affiliate composed of executives from the former franchise.
On Dec. 19, Corcoran Icon Properties will officially start business. Executives, sales associates and staff who worked with Corcoran Global Living in the Greater San Francisco Bay Area up to Humboldt and Calaveras County regions will be part of the affiliate. The new company will work with 24 offices and 900 sales associates, and will be headed by CEO Randall Kostick and President Steve Belluomini.
Pam Liebman, CEO of Corcoran, said in a statement that the new affiliate would usher in “a new era for Corcoran in Northern California.” Corcoran is still trying to figure out what it does in Southern California, where it terminated its agreement with Corcoran Global Living.
Corcoran Global Living, which was Corcoran’s largest franchise, had been mired in controversy. A number of its brokers alleged fraud, breach of contract and hundreds and thousands of dollars in unpaid commission. Brokers contended that Michael Mahon, CEO of Corcoran Global Living had diverted money to himself and his associates after commingling funds from the group’s Southern and Northern California divisions, and misstating the company’s financial situation.
Matt Borland, who was formerly COO at Corcoran Global Living, will be part of the new affiliate.
News of the new venture was first reported by Inman. The publication reported on Dec. 13 that Corcoran had terminated its Southern California franchise agreement with Corcoran Global Living, and reported today that the agreements for all other regions are also being terminated. Corcoran Global Living will be done and dusted by the end of this year.
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