Halstead Property

Diane M. Ramirez
President
dramirez@halstead.com
(212) 381-3203

Halstead Snaps Up Conn Broker

Gains a 55-broker toehold in rich Fairfield market.

By Amanda Fung

Residential brokerage Halstead Property has acquired boutique brokerage Wheeler Real Estate, in a move to expand into the Connecticut market. The deal further indicates a consolidation of the brokerage industry in the New York area.

Halstead, which has more than 700 brokers and has been owned by Terra Holdings since 2001, will gain a Fairfield County, Conn. outpost with 55 brokers. Founded in 1927, Wheeler, which will become known as Halstead Property Wheeler, will maintain its management. Financial details of the deal were not disclosed.

“They had an interest in coming to Connecticut and we wanted better exposure to New York,” said David Hawes, Wheeler’s executive director of sales, who will retain his title post acquisition. “There was a natural synergy.”

According to Mr. Hawes, many of Wheeler’s clients in recent years were New Yorkers looking for leafier places to raise young children. Many Connecticut residents also work in the city, he added, describing the communities of Darien, New Canaan, Rowayton and Norwalk as a “bedroom community for New York.” Wheeler will benefit from the resources of a larger company like Halstead and take advantage of its marketing power, both in print and on the Web, he noted.
Both firms are members of the Leading Real Estate Companies of the World and shared referrals through that international network before the acquisition.

“This is an incredible opportunity for Halstead Property to expand strategically into the suburban Connecticut marketplace,” said Diane Ramirez, Halstead Property’s president, in a statement.

Mr. Hawes added that even if the economy were healthy, “this type of opportunity for a boutique company like ourselves would not be one we would pass up on.”

Meanwhile, as the real estate market slumbers, a number of brokerages have either been shuttered or swallowed up by bigger players. Among them are JC DeNiro & Associates, founded by Robert De Niro’s uncle, which recently folded. At the same time, larger shops are acquiring smaller boutiques. Brown Harris Stevens recently snagged Edward Lee Cave Inc. and Morrel Realty for undisclosed prices.

With the addition of Wheeler, Halstead has 13 offices in the New York area.
“Any business has to separate itself from the pack,” said Mr. Hawes. “This was the best way to give us an advantage.”

Thursday, May 28, 2009