We’ve just learned that HomeServices of America Inc. will be acquiring Prudential Rubloff Properties, based out of Chicago. They aim to merge the large 860 agent firm with Koenig and Strey Real Living Real Estate. Once the merger is through, this will create the second-largest brokerage firm in the Chicago area.
The company plans to rebrand during the spring of 2014, and they will affiliate with Warren Buffett’s newest franchise brand. They will have nearly 1600 agents all doing business as Berkshire Hathaway HomeServices Koenig Rubloff Realty Group.
The Chief Executive Officer and Pres. of Koenig and Strey Real Living, Nancy Nagy, is going to take the role of the CEO of the combined companies. The new president will be none other than Michael Pierson, chairman and president of Prudential Rubloff Properties. Taking over as CEO, current Prudential Rubloff properties CEO Chris Eigel will handle COO duties for Berkshire Hathaway HomeServices Koenig Rubloff.
“Combining Prudential Rubloff with Koenig & Strey represents a new chapter in the history of our great companies and is a game changer in Chicago real estate,” said Nagy in a statement. “I have tremendous respect for both Michael and Chris and look forward to working closely with them as we bring Berkshire Hathaway HomeServices Koenig Rubloff Realty Group to the Chicago market.”
Last year, Prudential Rubloff did nearly $2.2 billion worth of sales volume. They have offices in Southwest Michigan, Northwest Indiana, a branch office in New Buffalo, Michigan and offices all throughout the metro area of Chicago. This deal also includes Sterling Title Services LLC and Rubloff Insurance. The company’s provide escrow services, title insurance and property and casualty insurance.
Koenig and Strey Real Living, acquired by Berkshire Hathaway over four years ago, is already one of the biggest brokers in the Chicago area. The company has more than 730 agents on staff, and did nearly $2 billion in sales volume during 2012.
The merger of these two companies is going to create the second largest brokerage firm by sales volume according to historical data. This data was provided by Lisle, Illinois-based MRED, multiple listing service.
This acquisition gives HomeServices of America, based out of Minneapolis, Minnesota, almost 22,000 real estate professionals working in 25 states. This company – and the majority of it is owned by Berkshire Hathaway HomeServices, Real Living Real Estate and Prudential Real Estate Franchise Networks – plans to focus its growth by “identifying market-leading companies” with “deep and enduring reputations within their community.”
“Nancy, Michael and Chris are each highly regarded for their leadership skills, their real estate experience, and their unwavering commitment to their agents, employees and buyers and sellers,” stated Ron Peltier, chief executive officer and chairman of HomeServices of America. “Bringing together the leadership, resources and talent of these two companies uniquely positions them to deliver on their shared mission of providing an exceptional customer experience and creates an outstanding opportunity for introducing Berkshire Hathaway HomeServices to the Chicago market.”