Elliman CEO Michael Liebowitz Talks Property Management Sale

Less than one year ago, Douglas Elliman CEO Michael Liebowitz vowed the firm would “be a company that is constantly changing, constantly evolving.”

As part of his plans to chart a new course for the troubled brokerage, the recently elevated executive said he planned to expand the company’s property management business, which accounted for $36 million or 3.6 percent of the company’s revenue in 2024.

But the brokerage is instead trading the business in, announcing last week it struck a deal for an $85 million sale of its property management arm to PMG Holdings, a subsidiary of Associa, one of the largest property management firms in the country.

As part of the deal, Elliman is paying off $50 million in convertible debt it took on in a deal with Kennedy Lewis Investment Management last year, which was redeemed for $95 million. The company expects to recognize roughly $70 million in an after-tax gain in the fourth quarter from the sale.

“Property management is not a focus,” Liebowitz said in an interview with The Real Deal this week. “I didn’t spend my time on the property management business … and [former CEO and Chairman] Howard [Lorber] never did either.”

Liebowitz emphatically denied that the sale was made as part of any effort to make the company a more appealing acquisition target. “It’s not even in my mind, the thought of selling this company,” he said. “The company’s not for sale.”

After a chaotic 2024 in which the company watched its stock price tumble amid poor earnings results and internal concerns over company culture, it appeared that earlier this year that Elliman could be the next player in a wave of industry consolidation to strike a deal.

Rumors of a possible sale circulated before Anywhere Real Estate was reported in May to have offered to buy the brokerage in a deal that would value the company at more than $4 per share. (Elliman is now facing a probe into trading activity ahead of the failed takeover bid from the Financial Industry Regulatory Authority).

The deal for the property management business includes a five-year licensing deal in which PMG can continue to use the Elliman brand as part of its property management services, something Liebowitz said is consistent with the type of deals the company will look to pursue in the future.

“It’s all about our brand, and getting paid for our brand,” he said. “That’s what our whole thing is going to be about going forward. Utilizing the brand, scaling the brand, making it global.”

He also repeatedly emphasized a renewed focus on the company’s brand, which he called “undervalued.” Liebowitz said that growing ancillary revenue is still part of the business plan for an “asset-light, pure play brokerage.”

His comments echo reactions by Elliman executives to Compass’ recent industry-shaking acquisition of Anywhere, the parent company of firms like the Corcoran Group, Sotheby’s International Real Estate and Coldwell Banker. Liebowitz told agents the deal marked a “tremendous opportunity” for Elliman, which offered a focus on personalized service and more agility than a hulking corporate structure.

Liebowitz, along with other residential executives, warned of changes at the firms under Anywhere’s umbrella, which Compass CEO Robert Reffkin has said will operate as usual upon the deal’s closing next year.

“Most of our competitors don’t have much clarity right now, and we do,” Liebowitz said. “Nobody knows what their brand is going to be.”