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Friday, Mar 29, 2024

Texas Firm Becomes Rare New Residential Broker Entry

Texas Firm Becomes Rare New Residential Broker Entry REAL ESTATE By Shelly Garcia There’s a new kid on the residential real estate block for the first time since anyone can remember. Keller Williams Realty International, an Austin, Texas-based brokerage, has opened its first office in the San Fernando Valley with plans to add several more locations in the area shortly. The office that opened in Northridge less than two months ago has attracted about 40 brokers so far and officials plan to staff up to 100 agents within the first year of operation. “We offer profit sharing and that’s the difference between us and everybody else,” said David Watkins, one of five partners in the shop. “Then another difference is Keller Williams offers at least five days a week of different training, so they really push you to do more business.” Most brokers work on a so-called “split” with the company, essentially a portion of the commission on sales. So do the brokers at Keller Williams, but in addition to the commission arrangement, Keller Williams funnels back a portion of the profits to the individual brokers. In 2003 the company said it paid out $13 million in profit sharing to its agents. The training helps agents to develop a business model in addition to refining sales strategies. “It helps them build their business more like a business instead of working for a conventional firm,” said Dave Cargo, a co-founding member of the Northridge office. “We participate as owners.” The company, which operates more than 300 offices nationally, is about to add locations in Studio City, Woodland Hills and Glendale. Plans are also in the works to open in Granada Hills, Van Nuys and Sherman Oaks. Kosmont, Lee Join Forces Kosmont Cos. and Lee & Associates have formed a joint venture to share services and expertise. Lee-Kosmont Advisory Services will provide a range of services including brokerage representation, financing and consultation on entitlement, zoning and other issues. The venture will be directed by Larry Kosmont, president and CEO of Kosmont Cos., and Mike Tingus, president of Lee & Associates-LA North/Ventura. “What I’ve been trying to do is provide more services and tools to our brokerage team,” Tingus said. “I saw a huge value to teaming up with his group because of the need for someone that really understands the entitlement business, land use, environment impacts and floating of municipal bonds, and the timing couldn’t be better.” Kosmont, which has done extensive work with public-private partnerships, also would be able to expand the reach of its services to clients. As cities step up economic development efforts, they need assistance attracting businesses and putting deals in place in addition to consultation and strategic assistance. “Cities need taxes and revenues and the way they get them is by getting deals done,” said Kosmont. As an example he pointed to a current project to help the city of Fillmore develop an industrial park. “We have been able to identify market opportunities but with Lee’s industrial knowledge, it helps us refine and target what the city should go after to get the most jobs and tax revenue from it.” Clients would be able to access a menu of services through the partnership, but the role each company would play will be negotiated separately. Cascades Deals Two deals were just completed at Cascades Business Park in Sylmar. A 122,000-square-foot building at 14093 Balboa Blvd. was acquired by Inline Distributing Co. for $9.9 million. Inline, which is currently based in Sun Valley, will initially hold the property as an investment and will occupy it when the current lease expires. Also at Cascades, a 1.1-acre parcel of land was sold to Jack Fase, president of Alno Inc. Alno, a decorative hardware company, plans to build a new facility on the site and relocate from Chatsworth. The parcel sold for $13 a square foot. The CB Richard Ellis team of Barbara Emmons, Greg Geraci and Greg Barsamian represented the seller on both deals, Royal Clark Development, and Inline. Doug Wax, a broker with Industrial Park Associates, represented Alno. With the transactions, only one parcel, a 2.9 acre site, remains at the 55-acre business park. That parcel is currently in escrow Emmons said. Earlier, Royal Clark had split off about 10 acres of the property for residential development. That project is currently working its way through the permitting process. Chavez Exits Staubach Robert Chavez, who headed the Los Angeles office of Staubach Co. for the past six years, is leaving to start his own brokerage company. The San Fernando Valley resident is planning to open a boutique brokerage, Guardian Commercial Realty, to represent tenants. Chavez said that as brokerage companies have increased in size, it is not uncommon for two brokers from the same company to be representing two different tenants competing for the same property. “We won’t take on another piece of business if it’s going to be a conflict,” Chavez said. “If I’ve got my own firm and I’m small I can do that.” Joining him in the new firm, which will be based in West L.A., will be Jee-Young Tscha, a broker who has worked side by side with Chavez for many years. Poison Pill for Walgreen’s A plan to build a Walgreen’s in Sherman Oaks took a step backward in recent weeks when Los Angeles City Councilman Jack Weiss joined the Sherman Oaks Homeowner’s Association in opposing the project. Weiss sent a letter to the developer stating that he would not support any variances or other discretionary approvals on the project. Walgreen’s, which is hoping to build a store on Ventura Boulevard at the site of the former Ventura Club, would be permitted to build the store in the commercially zoned district, but would have to receive certain exemptions from current codes because of the size of the project, parking requirements and other aspects of the development. Walgreen’s could still build the store without the exceptions, but would likely have to make adjustments such as building underground parking, which could be prohibitively expensive. Senior reporter Shelly Garcia can be reached at (818) 316-3123

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