Compass adds 630 agents, acquiring firm that did $5B last year

Realty Austin and Realty San Antonio sold $5.24 billion in Central Texas homes last year

Compass Acquires Realty Austin, Realty San Antonio
Compass' Robert Reffkin with Realty Austin's Jonathan Boatwright, Gabe Richter, and Yvette Flores (Realty Austin, Compass, Getty)

On the heels of its first cash-flow positive quarter as a public company, Compass is taking a big bite out of the Central Texas resi market. 

The firm has acquired Realty Austin and Realty San Antonio, an independent brokerage that posted $5.24 billion in sales last year. With the purchase, Compass expands its Texas headcount by about 630 agents and absorbs one of the region’s top brokerages. The sale price was not disclosed. 

Local leadership will stay in control of day-to-day operations, according to a news release. The Realty brokerages are led by Gabe Richter and were co-founded by Jonathan Boatwright and Yvette Flores. 

The firms said they expect Compass’ technology will help Realty Austin and Realty San Antonio get an edge in winning more luxury listings. Compass released an AI tool earlier this month aimed at making marketing easier for agents. 

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Compass recently crossed $10 billion in sales in the Lone Star State. The firm’s president in Texas is Rachel Hocevar, a former sales technology executive. Earlier this month, Compass bought Los Angeles boutique brokerage Deasy Penner Podley. 

In August, the brokerage announced that it was cash-flow positive for the first time since its initial public offering in 2021. It earned $51 million more than it spent in the second quarter, an apparent testament to its long-term viability. The company had spent years fueling its growth by acquiring top agents and brokerages while spending heavily on technology development. That brought it to the top of the brokerage ranks by deal volume, but also led to concerns on Wall Street as profitability remained elusive.

Revenues have fallen in recent months across residential markets, as higher mortgage rates keep activity down from the pandemic’s frenzied buying. Acquisitions of other brokerages may be one of the few routes left to boost sales revenues.

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