Corcoran Acquires McCann Real Estate Firm
Real estate firm to be renamed The Corcoran Group Palm Beach; owners to remain in senior sales positions.
Thursday, July 1, 2004 — McCann Coyner Clarke Real Estate Inc. of Palm Beach is the second island firm in less than a year to be swallowed by The Corcoran Group Palm Beach, New York City's largest residential real estate brokerage company, which announced the acquisition Wednesday.
Owners James McCann, Laura Coyner and Rosalind Clarke will continue in senior sales roles, reporting to Wade Shavell, regional vice president of The Corcoran Group Palm Beach, who sold his Westport, Conn., firm to Coldwell Banker in 1999.
McCann Coyner Clarke, which will be renamed The Corcoran Group Palm Beach, was founded in 1993 and maintained two offices on the island with 45 sales associates. McCann Coyner Clarke registered a total $310 million in sales this past year. The price of Corcoran's acquisition was not disclosed.
The Corcoran Group bought Paulette Koch Real Estate in October 2003, also renaming it The Corcoran Group Palm Beach. With Wednesday's merger, The Corcoran Group will have more than 80 agents and three offices in Palm Beach.
Pamela Liebman, president and CEO for The Corcoran Group, will continue to oversee operations in New York City, the Hamptons and Palm Beach. The Corcoran Group has more than 2,150 sales associates and employees. Last year, the firm had a total sales volume of more than $6.8 billion.
The Corcoran Group is owned by NRT, the largest residential brokerage in the United States. In February, Cendant Corp., NRT's parent, bought Sotheby's International Realty for $100 million, leaving its name intact.
'Unbelievable' referrals
Clients will benefit from the links among New York City, the Hamptons and Palm Beach, according to McCann and Corcoran principals.
"The referrals to and from New York will be unbelievable," McCann said. "We will have an incredible amount of referrals with crossover among the Hamptons, New York [City] and Palm Beach."
"We recognize the residential real estate business is a local business," said Scott Gibson, senior vice president of the Northeast region of NRT. Acquisitions provide more resources for agents, allowing them to offer a higher level of service, he said.
Local real estate firms had mostly welcoming words for Corcoran's latest move.
Corcoran's acquisition of McCann Coyner Clarke Real Estate is part of a national trend toward consolidation, said William Zeckendorf, co-chairman of Tara Holdings LLC, parent of Brown Harris Stevens, which has two offices in Palm Beach. Zeckendorf cited two factors: brand name recognition and the appeal of cash for the sellers.
Plenty of business
Consolidation means less choice, "and we are one of the choices, which is good news," he said.
John Pinson, president of John Pinson & Associates, with seven associates and one office in Palm Beach, said there will still be plenty of business for everyone.
"The interesting thing is, our business is not necessarily companies, it's the individual agents who are independent contractors generating their own spheres of influence," Pinson said.
Pinson's firm specializes in estates, trusts and international buyers, and has more than $50 million in sales under its belt so far this year, he said. The company is preparing to open an office in New York.
"The small fish are market specialists, and aren't offering just one standard format," he said. "They are more flexible. A large corporation is set in its ways and is less flexible. Specialization is very important in our business."
Large corporations that buy smaller firms always end up closing offices, and it takes about two years before the impact is known, he said.
Rodney Dillard, whose Illustrated Properties Real Estate opened in Palm Beach last year, expressed surprise, saying he had expected McCann Coyner Clarke Real Estate to remain independent.
"They had grown very rapidly into a very fine company," he said. "The right proposal came along at the right time, I guess."
McCann said there is "always room for good competition. It keeps everyone on their toes and keeps them sharp."
As for expanding into other markets, McCann said Palm Beach's South End condominiums, Manalapan and West Palm Beach are likely target areas.
When asked if Corcoran has its eye on other local real estate firms, Liebman said Corcoran would look at any firm that would seem to be a good fit for the corporation.
Zeckendorf said he suspects the buying-out trend may have run its course in Palm Beach. "I'm just not sure there is much left, really, to acquire."
Pinson said he isn't interesting in selling but conceded that money typically has the last word. "It depends on on how ridiculous the price is."