A week after going public, Compass announced on Thursday that it would expand its services to Delaware with three of the state’s best teams.
Having resumed expansion plans in October with an office in Hawaii, Compass is back on the move after completing its IPO on April 1st.
“Compass is proud to call Delaware our newest home, and we look forward to welcoming some of the most seasoned and respected professionals from across the state,” said Jeff Bedard, Compass Regional President of Pennsylvania, Delaware, and South and Central -New Jersey in a prepared statement Thursday. “In such a strong real estate market, we look forward to providing technical assistance to brokers across the state of Delaware.”
Mottola Group, Andrea Harrington & Associates, and Andrew White Group will build Compass’ market presence with 60 representatives, who together have sales of more than $ 260 million in 2020.
Andrea Harrington & Associates and The Andrew White Group serve buyers and sellers across Delaware, while The Mottola Group also serves customers in Pennsylvania, southern New Jersey, Maryland and Florida.
Mottola Group and Andrew White Group will operate from two offices in Greenville, while Andrea Harrington & Associates will operate from their Bear office.
“We are very excited to be part of Compass and to take advantage of the technology and excellent service that they offer agents and customers,” said Stephen Mottola, principal agent of the Mottola Group, in the announcement. “We are excited about the opportunity to expand our group to serve our customers in the Naples and Palm Beach regions while maintaining our core philosophy of exceeding customer expectations in all existing local markets.”
“We remain committed to specialized and focused one-to-one customer service while delivering the best innovations this new relationship offers.”
Compass halted its expansion plans in early 2019 when CEO Robert Reffkin announced that the broker would instead focus on building its support staff, rolling out technology hubs, and accelerating the adoption of proprietary technologies. In October 2020, Compass added Hawaii as the first new market in almost two years.
The brokerage took another hiatus as it prepared for its March IPO that raised $ 450 million. The brokerage, backed by SoftBank, reduced its offering the day before the IPO from a maximum of USD 936 million to USD 450 million. However, Reffkin said he was satisfied with the $ 450 million funding that will be used to further Compass’ growth goals.
The brokerage stayed relatively stable for its first week in the market (NYSE: COMP), with the price per share hovering in the $ 20-17 range.
Real estate analyst Mike DelPrete said Compass’ debut reflected the broker’s dubious position toward investors trying to figure out whether Compass is just a swanky traditional broker or a true tech company.
“Between July 2019 and April 2021, many real estate and real estate tech stocks saw massive gains, even traditional established companies like Realogy and RE / MAX,” he said. $ 6.4 to $ 6.65 billion) in the past two years – two years in which the company has grown massively in all areas. “
“The assessment discrepancy – especially when compared to its competitors – is clearly noticeable,” he added. “Investors have either significantly overvalued the company in previous rounds of fundraising or are pessimistic about future growth prospects.”
However, DelPrete said Compass still has a lot of growth potential as it places them as the next real estate leaders alongside eXp and Redfin: “In 2018 it might have been possible to ignore the companies or ditch their growth efforts. But by 2021, they have grown too big to ignore and are cementing – and building – their leadership position in the future of real estate. “
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