We are excited to announce the name of a new brand: Berkshire Hathaway HomeServices®. Earlier this year, Brookfield embarked on a search for a compelling brand to support the conversion of Prudential Real Estate franchise members and enable franchise expansion. HomeServices is providing this new brand called Berkshire Hathaway HomeServices®. The new partnership combines our franchise system Prudential Select Properties, with one of the most respected, like-minded companies in real estate – HomeServices of America, Inc., a Berkshire Hathaway affiliate. Together, we share core values and our long-term belief and commitment to the residential real estate market.
This new brand joins an existing franchise family that includes Prudential Real Estate and Real Living Real Estate. Berkshire Hathaway HomeServices® will be available in 2013. The new partnership is in the process of putting together a franchise disclosure document and over the coming months, it will unveil the new visual identity and logo, announce new partners, and provide new details on the overall value proposition.
Berkshire Hathaway HomeServices® is grounded in the financial strength and the deep traditions of HomeServices and Brookfield. The brand brings together proven operational excellence, demonstrated integrity and the Berkshire Hathaway reputation — one of the world’s most trusted and valued companies — to deliver the best and most respected real estate offering in the marketplace.
The new partnership is among the few companies to be entrusted to use the Berkshire Hathaway brand name with consumers, and will convey the strength of Berkshire Hathaway’s reputation through its core values of integrity, stability and longevity. We believe this is the best possible combination in the industry, based on qualities that are essential to our affiliates: financial strength, unparalleled reputation, operational excellence plus the foundational values of trust, integrity, stability and longevity.
Brookfield and HomeServices have formed a joint venture (HSF Affiliates LLC) and will operate the affiliate networks of Prudential Real Estate, Real Living Real Estate and the future Berkshire Hathaway HomeServices® brand. HomeServices and Brookfield have joint ownership of the new company, with HomeServices having a majority share.
Earl Lee will lead HSF Affiliates LLC as chief executive officer, Stephen Phillips as chief operating officer; Brian Peterson as chief financial officer and Aleya Chattopadhyay as chief marketing officer. Ron Peltier is chairman and CEO; Robert Moline is president and COO. The company will be based in Irvine, California.
HomeServices is the nation’s second largest, full-service residential brokerage firm with 26 real estate companies, more than 350 offices and more than 16,000 agents. In 2011, the company generated nearly $32 billion in closed sales. HomeServices has been a valued member of the Prudential Real Estate network for many years. In addition to owning a network of independent residential real estate brokerage companies that have retained their original market branding, HomeServices’ network contains several Prudential Real Estate franchises including Prudential California Realty, Prudential Carolinas Realty, Prudential Connecticut Realty, Prudential First Realty, Prudential Northwest Realty Associates, Prudential Northwest Properties, Prudential Rhode Island Realty, Prudential York Simpson Underwood Realty, and Prudential Yost & Little.
The announcement does not introduce any immediate changes to our business processes, resources or interaction with Prudential Real Estate and Real Living Real Estate affiliates. The two networks will continue to operate independently. Work continues on Berkshire Hathaway HomeServices® value proposition and brand position. Over the coming months the new partnership will unveil its visual identity, new partners and value proposition offering as well as more detail on our conversion plan.
We believe that timing couldn’t be better for Berkshire Hathaway HomeServices®. U.S. real estate is finally showing signs of stabilization after five long years of struggles. Housing inventory is falling around the country and home prices are firming in many markets. Consumers are returning to the market but, understandably, they are cautious. The stage is set for a new brand – one that delivers superior service, integrity and professionalism. The brand is right for today and tomorrow.