2 minute read
Douglas Elliman has sold its property management division to PMG Holdings, a subsidiary of Associa, in an $85 million deal.
The sale was approved by all but one member of Douglas Elliman’s board of directors. The exception was board member David K. Chene, a principal at Kennedy Lewis Investment Management, who recused himself from the vote.
The deal closed Oct. 24, the same day it was signed, an U.S. Securities and Exchange Commission filing shows.
Douglas Elliman was the subject of a rumored buyout by Anywhere Real Estate earlier this year — before Anywhere was eventually acquired by Compass.
Elliman said it expects to report a gain of more than $75 million from the sale in the fourth quarter. The company plans to use the proceeds, along with existing cash, to pay off debt it issued to Kennedy Lewis last year.
As part of the transaction, PMG Holdings will continue using the Douglas Elliman name for its property management services under a five-year licensing agreement.
The two companies will also maintain their referral relationship — allowing Elliman’s brokerage business and PMG’s management arm to continue working together on client services.
Elliman agreed to a five-year noncompete clause in New York, Texas and other areas where Associa operates.
Terms also restrict Elliman from poaching employees or clients affiliated with PMG or its former property management arm.
Elliman’s property management division oversaw cooperative, condominium and rental buildings across New York and other markets.
