SVN Embraces an Alternative to Its Franchise Ownership Model

Brokerage firm SVN International Corp. is adopting a partnership model as part of a new growth strategy. SVN launched the new strategy with the minority purchase of two Southern California offices. This is the first time that the firm has purchased a interest in an office since 2008, when it shifted to a franchise model. As part of the growth strategy, SVN will acquire a minority interest in established commercial real estate companies that are in high growth markets, including Washington DC, San Francisco and New York City.

“As a growth accelerator for the brand, these minority acquisitions not only provide SVN with immediate market share but also provides a foundation on which we can aggressively reinvest in markets on an ongoing basis for future growth,” Kevin Maggiacomo, president and CEO of SVN International Corp., tells GlobeSt.com. “These key markets are also the most active in terms of volume and velocity and serve as hubs for inbound and outbound opportunities.”

This is the first part of a two-pronged growth strategy. The second part will focus on the growing interest in alternative consolidation options. “We believe that the evolving competitive landscape and wave of consolidation has created demand for firms to be part of a larger platform but who also seek an alternative to traditional franchising or a straight, 100% acquisition,” adds Maggiacomo. “Our partnership strategy provides a bit of both, affiliating with one of the most recognized brands in CRE while simultaneously realizing some liquidity.”