Pacific Union sold to smaller, Marin-based firm

Pacific Union, part of GMAC, is being sold to Morgan Lane Marin, a smaller company:

Boutique real estate firm Morgan Lane Marin Inc. is swallowing its larger competitor, Pacific Union GMAC Real Estate, in an acquisition that promises to create a local brokerage powerhouse, but could also entail serious challenges in this sluggish housing climate.

The deal, for an undisclosed sum, will bring together 17 Bay Area offices and more than 430 real estate professionals, with combined sales volume projected to reach $2.2 billion this year. As recently as 2000, Pacific Union alone was boasting sales of $3.2 billion, a difference that highlights the recent fallout in the brokerage industry and strongly hints that Morgan Lane picked up its rival at a discount.

Mark McLaughlin, chief executive officer of the Marin real estate company, said he pursued the deal because it offered a chance to inject the entrepreneurial attitude of his high-end-focused firm into a dominant local brokerage. Pacific Union is among the top five regional real estate companies and also focuses on the luxury end.

SOURCE: SF CHRON