Warren Buffett Acquires Prudential Real Estate Unit

Warren Buffett’s company, Berkshire Hathaway, is buying a real estate franchise from Prudential and Real Living. Berkshire Hathaway will launch a new brokerage brand for the agents from Prudential. The company announced Tuesday that it will acquire Prudential’s real estate agent network from Brookfield Assert Management. Berkshire and Brookfield will start the new Irvine, California-based firm, Berkshire Hathaway HomeServices. The agents will begin switching firms next year.  Buffett is happy to lend the new company Berkshire's name and financial strength. The new company will be led by a team of executives from Prudential Real Estate.

Berkshire’s HomeServices, a majority owner, already comes with 16,000 real estate agents in 21 states. The independent brokers will not be forced to switch affiliation to the new network, but they will begin noting Berkshire Hathaway is now the owner. The CEO and Chairman of HomeServices, Ron Peltier, believes the deal gives the company a national franchise network with 75,000 people to compliment HomeService’s already local brokerages. “The strategy going forward is to migrate the franchises over to on super brand: Berkshire Hathaway HomeServices,” Peltier said. The company will help ensure both the independent brokers and the Berkshire Hathaway HomeServices locations will show up in Internet searches.

 

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Nick Banks

Nick created Front Street Commercial Real Estate Group in 2002 and spent the first eight years developing and acquiring office and retail projects in South Florida as well as North Central Florida. In 2010 the focus of the firm was shifted to primarily serve third party clients and perform brokerage, property management and mortgage banking functions. Nick has personally developed and acquired nearly 200,000 square feet of office and retail properties in markets throughout Florida. Prior to founding Front Street, Nick was the Director of Finance and Dispositions for Stiles Corporation in Fort Lauderdale where he financed and sold over $500 million in commercial real estate. Before joining Stiles, Nick was an Associate Director at GE Capital Real Estate where he sourced over $200 million in financing throughout Florida. Nick is a graduate of the University of Florida with a degree in Finance and a concentration in Real Estate. He serves as a board member and current vice-chair for the United Way of North Central Florida where he also chairs the Development Committee. Nick is actively involved with the Gainesville Area Chamber of Commerce where he serves as a board member and committee member for the Council for Economic Outreach. He is also a recent graduate of Leadership Gainesville which is a year long leadership program hosted by the Chamber. He is a member of Grace United Methodist Church where he has served as finance chair and as a member of the leadership council. Nick serves as an advisory board member of the University of Florida Bergstrom Center for Real Estate Studies. Nick was recently named chair of the Gainesville committee for the North Florida chapter of Urban Land Institute (ULI). He is a licensed real estate broker in the State of Florida and is a long time member of the International Council of Shopping Centers.

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