McGarvey Clark Bought by Coldwell Banker

In a move that mirrors a consolidation trend among real estate brokerages, Coldwell Banker Southern California said Thursday that it has acquired McGarvey Clark Realtors, a major independent firm in north Orange County, for an undisclosed sum.

Analysts said national firms are sweeping up local real estate businesses that find it more difficult to attract buyers who are relocating to Southern California and lack the resources to invest in Internet Web sites that could help raise their profiles.

The acquisition of McGarvey Clark will give Coldwell a foothold in Fullerton and Yorba Linda, areas that the smaller company dominated, analysts said. The move allows Mission Viejo-based Coldwell “to create an immediate position in these north Orange County markets without having to build new offices and compete head-to-head with a very strong local firm,” said Patrick Veling, a housing market analyst at Dynamic Marketing Resources Inc. of Fullerton.

Coldwell is the largest residential real estate brokerage in Southern California and the third largest in Orange County, where it sold $1 billion worth of homes during the year ended June 30, according to figures compiled by Dynamic Marketing. McGarvey Clark, which was founded in 1953 and has more than 100 employees, ranks 21st in the county. It completed $78 million in sales during the year, according to Dynamic.

Coldwell Banker is owned by New Jersey-based NRT Inc., which also controls Century 21 and ERA.

Coldwell and McGarvey officials weren’t available for comment.

The deal marked the second acquisition in as many weeks for Coldwell. The company bought Bradbury Realtors of the San Fernando Valley for an undisclosed sum.

Analysts said they expect to see more mergers.

“I won’t be surprised if we see many other firms of like size and culture being absorbed by Coldwell Banker and other large real estate firms,” Veling said.