Illustrated gains on Coldwell by buying PGA National Realty

By Linda Rawls

08/03/2005

Illustrated Properties — the county's No. 1 independently owned real estate company — has continued its expansion spree, buying PGA National Realty for an undisclosed amount from its founder, PGA National Resort & Spa developer Llwyd Ecclestone.

The deal will boost Illustrated's sales this year to more than $2 billion, President Chappy Adams said Tuesday, and expand its sales force to 550 Realtors.

It also makes Palm Beach Gardens-based Illustrated a more serious challenger to top-ranked area real estate agency Coldwell Banker, he said.

"We're No. 2 among all agencies now," he said, "and we're closing the gap on Coldwell Banker."

The PGA National Realty sale, which closed Monday, also includes Country Club Properties in Palm Beach Gardens, which posted $200 million in annual sales last year.

PGA Realty handles about 70 percent of all resales at PGA National, a 5,000-home golf course community in Palm Beach Gardens.

Ecclestone was out of town Tuesday and not available for comment, his assistant said.

Last month, Illustrated Properties bought Old Port Cove Corp. of North Palm Beach in another move to expand its on-site sales position in golf course communities. Illustrated also owns Jonathan's Landing Realty and Lost Tree Village Realty.

Illustrated is entering the condo-conversion and new-home sales arena, as well, Adams said.

The agency is the on-site broker for The Strand, a condo conversion in West Palm Beach that has a grand opening party tonight with 270 units going on sale this weekend.

"Even though there are a lot of new, small companies, consolidation is a major trend in the real estate business nationwide," Adams said. "There will be more because of the ability to pool resources and market share. That's why we've continued to grow over the years."

The consolidation trend will continue, said Jim Sahnger of Palm Beach Financial Network in Sewalls Point, because it's a less expensive way to do business in a competitive market.

"Marketing costs are always increasing, agents are demanding higher commission splits and it's becoming harder for businesses to compete and make a profit," he said.

However, the success of a real estate company ultimately depends on the individual real estate agent, not how big or small the agency is, Sahnger said.

"Buying a house is not like buying a car. If you want an Explorer you can go to any dealership and buy one. Buying a house is an emotional transaction. The customer has to trust the agent and the agent has to develop a very good working relationship with everyone involved in the transaction — the mortgage professionals, the real estate lawyers, the title people and so forth."

Illustrated Properties has 20 offices in Palm Beach, Martin and St. Lucie counties, and an office in Naples. The company was founded in 1975 by Adams' father, Bud Adams.

With Chappy Adams' purchase of Ecclestone's PGA National Realty, the Adams-Ecclestone business ties now span two generations.

Ecclestone's father, the late Llwyd Ecclestone Sr., developed Lost Tree Village, an upscale community in North Palm Beach. Adams' father, Bud, was Lost Tree's original broker.

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