Minnesota Firm Buys Prudential California
BY MANDY JACKSON
Staff Writer
Prudential California Realty, the largest residential real estate agency in the county, has sold a majority interest to HomeServices.com Inc.
The value of the transaction, which will be completed April 2, was not disclosed.
Prudential California’s sales volume in 2001 was $13 billion. The San Diego-based company has 71 offices and 3,100 sales associates in Southern California between San Diego and Santa Barbara.
Co-owners Stephen Games, Nyda Jones-Church and John Aaroe will retain a 15 percent interest in the company.
“They’re really excited about their business and they wanted to retain some ownership,” said Cindy Sattler, HomeServices vice president and controller.
HomeServices, based in Edina, Minn., is now comprised of 11 different real estate agencies in 14 states. It is a wholly owned subsidiary of Berkshire Hathaway Inc., whose CEO and majority owner is billionaire investor Warren Buffett.
“I didn’t want to sell and leave the real estate business I started as a founder. I wanted to stay around and watch it grow,” Games said.
Games, CEO and managing partner of Prudential California, said his company watched HomeServices for a number of years, and noted that the company was successful and similar to itself in its integrity.
“After Sept. 11, I wanted to expand the real estate company into different markets. I felt there was a need to find different capital sources,” he said.
Games approached HomeServices in mid-September in order to help the company grow, and to provide financial security in case of another catastrophe similar to the terrorist attacks in September.
Prudential California hopes to double its size in Southern California in the next five years, Games said.
Games and his partners will maintain their management roles for at least five years.
After speaking with Games and HomeServices president and CEO Ron Peltier, Carlton Lund, one of Prudential California’s top agents, said “I think it’s business as usual.”
Lund sold his Carlsbad-based real estate agency to Games 10 years ago. He feels comfortable with Buffett as the new owner, and said the investor made the right choice for expanding HomeServices into Southern California.
No layoffs or company name changes are planned.
Prudential California is the largest of the Prudential Real Estate Affiliates franchises, and recently extended its franchise agreement through 2011. The Prudential network is a subsidiary of Newark, N.J.-based Prudential Insurance Co.
