Beverly Hills-based real estate brokerage Partners Trust is merging with San Francisco-based Pacific Union International Inc. in a deal that would bolster a new residential real estate leader in the region.
The financial terms of the deal, which was announced last week and expected to close this week, were not disclosed.
The news follows Pacific Union’s merger in December with John Aaroe Group of Beverly Hills, one of the L.A. area’s top brokerages. Pacific Union is led by Chief Executive Mark McLaughlin.
Partners Trust was No. 11 on the Business Journal’s list of top residential brokerages this year, as ranked by 2016 sales volume in Los Angeles County, with $2.47 billion in sales. John Aaroe was ranked No. 10 with $2.5 billion.
The two firms’ combined sales in the county of roughly $5 billion, now under the Pacific Union umbrella, would put the new entity in the running for the No. 2 spot on the list, currently held by Beverly Rodeo Realty Inc.
Pacific Union reported $12.6 billion in total sales volume for 2016, which the company said made it the eighth-largest real estate brokerage in the United States.
“Our merger with Pacific Union represents a new and exciting era for our team of partners and associates,” Nick Segal, Partners Trust chief executive, said in a statement. “It will positively redefine the California real estate market and make us the dominant, independent force in the Los Angeles luxury real estate market.”
The two local firms will continue to operate as separate brands in their respective offices, Partners Trust said.
The news of the merger followed New York-based Douglas Elliman’s recent announcement of its acquisition of Beverly Hills-based Teles Properties, furthering a trend of brokerage consolidation in California.
– Natalie Hoberman
For reprint and licensing requests for this article, CLICK HERE.