The Twin Cities-based franchise snapped up a 24-agent office in St. Cloud.
Twin Cities-based Re/Max Results pressed its regional expansion with the acquisition of Re/Max Realty Source, a 24-agent office in St. Cloud. The deal follows the opening of a Re/Max Results franchise in the same city and a handful of acquisitions in southern Minnesota earlier this year.
Re/Max Results is already the largest Re/Max franchise in the country, but the company hopes to capture a greater share of the regional market at a time when brokerage prices are low, and markets are improving. Terms of the deal weren't disclosed.
"We want to be very strong in that market," said Lynn Foulke, the chief executive officer for Re/Max Results. "The market is showing sings of improvement, and we felt that this would be a great foundation upon which to build."
The Twin Cities is dominated by a handful of local brokerages with local and national ownership, including Edina Realty, Coldwell Banker Burnet and Re/Max Results.
In St. Cloud, the situation is slightly different. Marshall Saunders, the Re/Max co-owner and broker, said unlike many regional markets in which only a few companies dominate, St. Cloud has about a half dozen companies that share most of the business.
Since the beginning of the Great Recession, the number of brokerages in the Twin Cities has dwindled, while the number of licensed agents has dropped about 40 percent, according to the Minnesota Department of Commerce.
Despite sagging home prices, deal-making for real estate agencies is on the rise. Earlier this year, Twin Cities-based HomeServices of America, the parent company of Edina Realty, announced several large acquisitions beyond the Midwest. And in February Re/Max Results acquired two brokerages in Rochester and a RE/MAX Realty Plus in Austin.
Including the most recent deal, Re/Max has 24 offices with nearly 700 associates from Wayzata to Ellsworth, Wis., and Austin, Minn., to St. Cloud. Realty Source will operate under the Re/Max Results name.
Foulke said the Realty Source office was attractive in part because the group has a particularly strong commercial business, a segment of the market that the company's other office hasn't yet embraced.
Jim Buchta 612-673-7376