HomeServices buys Colorado brokerage with luxury focus

Twin Cities-based HomeServices of America has made its first investment in Colorado with the acquisition of Kentwood Real Estate, one of the most prolific brokerages in the state.

Denver-based Kentwood has more than 200 agents in just three offices, but those agents specialize in the luxury market and are among the most productive in the nation. In 2015, Kentwood was the top company in Colorado, and the third nationally, in average volume sold per agent. Also last year, it closed nearly 4,500 transactions representing nearly $2.4 billion of volume.

Kentwood agents focus primarily on the Denver metro area with offices in the Denver Technological Center, Cherry Creek and downtown Denver.

HomeServices of America, which has its offices in downtown Minneapolis, is an affiliate of Berkshire Hathaway. HomeServices is the second-largest real estate company in the country and the parent company of dozens of well-known local businesses, including Edina Realty.

"This is an important transaction to HomeServices," said Ron Peltier, chairman and CEO of HomeServices. "Kentwood's culture of service, integrity, and community involvement closely aligns with our corporate vision and emphasis on customer value and results."

Terms were not disclosed.

For the past several years, HomeServices has been quietly expanding its national footprint by acquiring brokerages in both new and familiar markets for the company. Unlike many of its competitors, HomeServices does not change the name of the brokerage or fiddle much with management. That strategy is based on the belief that the local brand has more value than being aligned with a sprawling national operator.

For its part, HomeServices is able to expand its offerings of services that are affiliated with buying and selling a home, including closing and title services. The company has also been building its own mortgage operations after a recent long-planned divorce from Wells Fargo.

Peltier said that the Denver market has been on his acquisition wish list for about a decade, and that he had been pursuing a deal with Kentwood for about two years. "We will continue to look for expansion opportunities both in Colorado as well as increasing our presence across the country," he said.

In a news release, Kentwood CEO Peter Niederman said that joining HomeServices enables the company to continue its own expansion efforts. "We've been the leading brokerage in the Denver market for many years and this transaction makes us an even stronger organization," he said. Kentwood was founded in 1981.

Including Kentwood, HomeServices now has more than 27,000 employees in nearly 500 offices in 28 states. Last year the company and its affiliates facilitated more than 233,000 residential sales worth $81 billion.

In May, HomeServices made the full acquisition of two franchised operations in Florida and Oregon that became affiliated with Berkshire Hathaway HomeServices after HomeServices became their majority owner.