by Fred Seely
Editor
Questions and answers about the purchase of Prudential Real Estate and Relocation Services, which has a local affiliate operating as Prudential Network Realty:
Who bought Prudential?
The Toronto-based Brookfield Residential Property Services.
How big is Brookfield?
With the acquisition, Brookfield said it becomes the world’s second largest employee relocation services provider and third largest residential real estate franchising business.
They operate in Canada under the Royal LePage name and in the United States as Real Living Network Services.
In Florida, there are Real Living offices in 34 other cities including Tampa, Orlando and Miami. The nearest is Palm Coast.
Where did Real Living come from?
A merger of GMAC, which Brookfield acquired in 2008, and Real Living, bought in 2009.
What did Brookfield buy?
Prudential Real Estate and Relocation Services is an integrated real estate brokerage franchise and relocation services business. Prudential Real Estate is one of the largest real estate brokerage franchise networks in North America, with more than 1,600 franchise offices and approximately 54,000 sales professionals.
The network is comprised of independently owned and operated real estate brokerage companies that remain independently owned and operated.
How big is Prudential here?
Locally, there are 300 agents in eight offices.
How big is Brookfield?
The addition of Prudential gives Brookfield almost 80,000 real estate agents, 2,800 real estate brokerage locations, and more than $150 billion in annual residential real estate transactions.
What happens locally?
Nothing, says local CEO Linda Sherrer. “It’s still us.”
A name change?
Prudential Network Realty will retain its naming rights for at least the next five years, which is when the current contract runs out. After that, expect a new name, though Sherrer pointed out that “Prudential” has been a fixture here for 23 years. She’ll lose that battle as a Brookfield spokesman said offices likes hers “may continue to use the Prudential Financial, Inc. brand until the expiration of their franchise agreements.”
Is this a good deal for Northeast Florida?
According to Sherrer, the benefit comes in that Brookfield focuses solely on real estate while Prudential has diverse interests. Also, Brookfield has a larger global footprint and stronger emphasis in corporate relocation — 21 percent of Prudential Network’s business — and should result in greater opportunities, she said.
Who owns the local franchise?
Sherrer is the founder, president and CEO; Christy Budnick, is the executive vice president of residential real estate; and the “partners” are Jacksonville business executives and investors Tom Petway, W.A. “Mac” McGriff, Bruce Bower and Michael Hughes.
Who owns Brookfield?
It’s a division of the publicly-owned Brookfield Asset Management Inc., a global asset manager with over $100 billion of assets under management. It is listed on the Canadian Stock Exchange under BAM.PR. They’ve made a strong acquisition effort since 2008, doubling their direct real estate interests. The real estate division leaders are all Canadian.
Why did Prudential sell?
According to the Chicago-based Zacks Investment Research, the company sold its real estate division “as part of its initiative to reshape business by divesting units which lie beyond its core competencies. Prudential has been focusing closely on the growth of three key areas — Asset Management, Annuities and International — and has divested other allied businesses ...” Of course, the reported sale price of $110 million could have been a factor, too.
Who’s the boss?
Earl Lee, president of Prudential Real Estate and Relocation Services, will continue to lead the U.S. real estate business. According to a Brookfield press release, he is presently based in Scottsdale, Ariz. (Note the word “presently.”)
One step further up the ladder is Rick Schwartz, president of Brookfield Global Relocation Services, who “will assume responsibility for the combined global relocation services business.” He is in the Dallas-Fort Worth, area.