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ouglas Elliman sold its property‑management division to PMG Holdings, a wholly owned unit of Associa, the nation’s largest property‑management group. Associa acquired all equity for $85 million, per SEC filing. The proceeds, combined with existing cash, will settle $50 million of convertible debt issued to Kennedy Lewis Investment Management last year, which was redeemed for $95 million. After the transaction, Elliman will hold $122 million in cash.

    The board approved the sale unanimously, except for David Chene, a Kennedy Lewis partner who had joined the board as part of the investment. Chene resigned afterward; the filing said the departure was unrelated to any conflict.

    In 2024, the divested arm employed more than 216 staff and generated $36 million—3.7 % of Elliman’s roughly $1 billion revenue. Under the deal, PMG will license the Douglas Elliman name for five years and the two companies will keep their existing referral partnership.

    The transaction occurs amid a wave of consolidation in residential real estate. Compass recently paid $1.6 billion for Anywhere Real Estate, which owns Corcoran, Sotheby’s International Realty and Coldwell Banker. Rocket Companies closed a $14 billion purchase of Mr. Cooper, the country’s largest home‑loan servicer. Earlier this year, Elliman received a takeover bid from Anywhere that ultimately fell through. The brokerage’s first‑quarter results showed losses narrowed to $6 million from $42 million the previous year, but the second quarter saw a $23 million loss versus $2 million the year before. Elliman projects an after‑tax gain exceeding $75 million in the fourth quarter.

    Associa, founded in 1979, operated 300 offices in 42 states and four countries outside the U.S. last year. It relocated its headquarters to two Richardson, Texas buildings after a 30 % revenue increase over the prior two years.