C
ompass made a significant move in the residential real estate market by announcing its acquisition of Chicago-based @properties and its Christie's International Real Estate flag. The deal, valued at $444 million, includes title and mortgage businesses and is expected to close next year.

    @properties co-founders Thad Wong and Mike Golden will receive $150 million in cash and 44.1 million shares of Compass stock upon closing. They will also stay on as co-CEOs to run @properties' day-to-day operations, with the firms continuing to operate separately.

    The acquisition marks a surprising end to the fierce rivalry between Compass and @properties since Compass expanded into Chicago in 2017. @properties had boasted $7.55 billion in total sales volume across 12,814 deals, accounting for more than a quarter of the city's top 20 firms' sales volume.

    Some brokers were upset by the news, particularly those who felt they weren't informed ahead of time. However, others saw it as an opportunity for growth and change. "You gotta be versatile and roll with what the market demands," said @properties broker Jena Radnay.

    The acquisition is expected to strengthen Compass' presence in the Chicago market, but may also lead to a strengthening of new competitors. As one broker noted, "With change will come another competitor." Consumers may not see the two top firms as separate brands anymore, potentially swaying them toward working with independent agents.

    Compass CFO Kalani Reelitz compared the plans for the firms continuing independent operations to how Anywhere Real Estate owns and oversees several brokerages. Compass' top Chicago broker Jeff Lowe noted that the acquisition will give @properties access to Compass' title and mortgage services, which hadn't appeared to catch fire in the area.

    The deal has sparked debate among brokers about the future of real estate companies and the impact on independent agents. As one Compass agent noted, "Now you've just added a bunch of other top agents into the mix, and there'll be less to differentiate ourselves."