Louisiana-based real estate company Latter & Blum sold | Business

A longtime Louisiana-based real estate brokerage company has been sold.

Latter & Blum, which is based in New Orleans and has offices in Lafayette and other markets in the state, was sold to Compass Real Estate, the largest residential real estate brokerage in the U.S. by sales volume, company officials announced Wednesday. 

Details of the deal were not disclosed.

Compass, which is in 72 markets in 28 states, described the acquisition of “a 100-plus-year-old boutique brokerage” and the top company along the Gulf Coast that netted $3.6 billion in sales last year.

The deal will allow Latter & Blum agents to gain access to a large referral network and the industry’s leading technology platform, firm officials said. Compass has nearly 30,000 agents and maintains a presence nationwide in over 150 cities, including Atlanta, New York, San Francisco and Miami, and has invested $1.5 billion on a contact-to-close platform to streamline home-buying.

Agents with Latter & Blum, led by chairman Robert Merrick and his daughter, CEO Lacey Merrick Conway, last year closed $3.6 billion in transactions. 

The two companies will operate as a co-brand initially with Latter & Blum eventually to be rebranded under the Compass banner, according a report by real estate news website Inman.com. The deal would increase the agent count for Compass up 21% if all agents remain after the deal.

“At Latter & Blum, we take pride in creating life-changing opportunities and meaningful careers for agents,” Merrick Conway said. “This partnership enhances our commitment, providing our agents and the local community access to an expansive referral network and cutting-edge tools driving the industry forward while maintaining our local culture and expertise.”

Last fall Compass launched Compass AI, a machine-learning tool that empowers agents to craft compelling listing descriptions and design effective marketing strategies, Latter & Blum offiicials said. Compass also announced an international referral program in partnership with Barnes International, a leading European brokerage.

“We are excited to welcome the No. 1 brokerage in the Gulf South to Compass,” Compass founder and CEO Robert Reffkin said. “We will now have a firm presence across the Gulf Coast, from Texas to Florida, providing more opportunities for our agents to transact and better serve their clients.”

Longtime Acadiana real estate analyst Bill Bacque with Market Scope Consulting noted the acquisition “is a big deal that will garner national attention” but that more in the industry could come.

“In today’s competitive environment for productive agents, compensation pressures and higher operational costs have had significant impact on brokerage’s bottom lines,” Bacque said. “Although this will likely rank as the biggest acquisition so far this year, the market pressures that made this possible will not diminish. I would expect more consolidation, mergers and acquisitions in the future.”

Lori McCarthy, managing broker for the firm’s Acadiana offices, confirmed the deal, which was first reported by Inman. 

“We are so excited to become a part of such an elite company with a reputation of excellence,” McCarthy said. “Latter & Blum and Compass share the company values of community, culture and professionalism.”