Compass to Acquire Pacific Union, the Fifth Largest Real Estate Broker in the U.S., Reports Say

In July, New York-based real estate startup Compass acquired Paragon Real Estate, a San Francisco-based brokerage firm

New York-based real estate startup Compass is nearing closure on a deal to acquire San Francisco-based luxury real estate company Pacific Union International Inc., according to recent reports. Real estate industry news site Inman first reported the deal, citing sources, on Tuesday. Later that day, Los Angeles-based real estate news outlet The Real Deal reported it has obtained a copy of an email sent to Compass employees on Tuesday, in which CEO Robert Reffkin confirmed the deal.

 

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Founded in 1975, Pacific Union was ranked fifth largest real estate broker in the U.S. according to sales volume with over $14 billion in closed deals during 2017, according to a ranking by Colorado-based consulting firm Real Trends.

 

Compass co-founder Ori Allon. Photo: Reuven Schwartz

 

Founded in 2012 by Robert Reffkin and Israeli entrepreneur Ori Allon, Compass operates a digital portal for buying, selling, and renting real estate. Softbank Group Corporation’s Vision Fund invested $450 million in Compass late last year, bringing the company’s total funding raised to $775 million.

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In July, Compass acquired Paragon Real Estate Group, a San Francisco-based brokerage firm for an undisclosed amount. In a statement, Compass said at the time that the deal is part of the company’s expansion efforts in the Bay Area, where it now employs a team of more than 500 agents.

 

Both Compass and Pacific Union have yet to reply to Calcalist’s requests for comment.