Royal LePage Real Estate Services’ acquisition of the 31-year-old independent Coast Realty Group of offices and property management business, with 150 agents in the central Vancouver Island area, was a matter of perfect timing.
“The major reason was our ages,” says Jim Ballard, one of the six Nanaimo founding representatives who created the independent group of agencies on the Island. “When we started in 1984, I was in my 30s. I’m the youngest and today I’m 66.”
The other partners range in age up to the mid-70s. Ballard said the partners had simply reached the age when they no longer wanted the responsibility that comes with overseeing a string of offices that stretches from Campbell River down to Ladysmith, with one office on the mainland at Powell River.
“The timing was right,” says Ballard. Other large franchisees had regularly knocked on the brokerage’s door during the last decade, but “we just were not ready then,” he says.
Ballard said there was no interest internally from agents to take over the company in a succession plan. Two of the founding members, Ron Baines and Bruce Chanakos, had already retired. Ballard says the partners talked with Royal LePage during the past year and felt comfortable with the company.
“We felt their culture and our culture blended very well,” he says. “It is still early days, but it is turning out well.”
Ballard and the other co-owners of Coast Realty – Blaine Froats (who served as the point man in forging the deal with Royal LePage), Mark C. Anderson and Reg Warren – will remain with Royal LePage as sales agents.
Marty Douglas, a minority shareholder with Coast Realty for 17 years before moving to Re/Max in the Comox Valley three years ago, said the story of Coast Realty points to one of the pitfalls that independents face as senior shareholders want to exit.
“This was a successful business. We are talking millions of dollars,” he says. It shows the wisdom of having a long-term succession plan in place, he says, adding many other owners of independents are no doubt learning a lesson from Coast Realty.
The brand’s growth faced a setback when it lost high-profile general manager Randy Forbes in 2011. “Randy really brought the company to its peak,” says Douglas, as it climbed to 238 sales agents in 2007. “He led the expansion up and down the Island – he’s a great leader.” Forbes has since started his own brokerage, 460 Realty in Nanaimo, which has 30 agents.
Forbes was replaced by Barb Lafreniere in 2014. Lafreniere came with 30 years of experience in commercial real estate and extensive experience in property management. Ballard says Lafreniere will stay in the organization for the time being to help with the transition.
Douglas says the acquisitions put Royal LePage in a strong position on the mid-Island, either having market-share dominance or running second to Re/Max.
Royal LePage is a relatively new player on the Upper Island real estate market, having entered in 2000.
Barry Clark and Travis Carmichael, brokers/owners of Royal LePage Nanaimo Realty, have acquired Coast Realty Group offices in Nanaimo and the offices in Ladysmith and on Gabriola Island. Combined, Royal LePage Nanaimo Realty now has the largest market share in Ladysmith and on Gabriola Island and has doubled its Nanaimo market share.
“We felt that to continue to succeed, we needed to grow,” says Carmichael, adding that the acquisitions “add strength to the company.” He says his agency is seeing a lot Asian buyers coming into the market. “They are finding they can buy two or three houses here for the same kind of money they spend in Vancouver,” he says, adding that that move is increasing business in the retirees and first-time buyers markets.
Clinton Miller, broker/owner of Royal LePage Port Alberni-Pacific Rim Realty has acquired the Coast Realty offices in Port Alberni and Ucluelet. The Port Alberni offices are merging and the Ucluelet office will be a branch outlet. Miller is also the broker/owner of Royal LePage Parksville-Qualicum Beach Realty and has acquired Coast Realty’s Parksville and Qualicum Beach offices.
Gregg Hart, broker/owner of Royal LePage in the Comox Valley, acquired the Coast Realty office in Courtenay and will merge the offices. He also takes over the former Coast Realty offices in Hornby, Denman Island, Cumberland and Union Bay, which will now operate as satellite offices of the Courtenay brokerage.
Stephen Grant, broker/owner of Royal LePage Advance Realty in Campbell River has taken over the former Coast Realty office in Campbell River and will merge the operations.
Grant says, “It was a mutual opportunity both for the Coast owners and the Royal LePage owners.” He says Campbell River is welcoming a grey wave of retirees and the average home sale price is $312,000. Retirees are coming from all points across Canada, the B.C. Interior and larger areas such as Vancouver and Victoria. “It’s affordable with a good climate – very little or no snow,” he says. The seaside community offers fishing, a good selection of nearby golf courses and skiing in the local mountains.
The Powell River Coast Realty office will also convert to Royal LePage before fall.
Jean Sorensen is a contributing writer for REM.
