Nothing lasts forever. Even the grandest of real estate properties will lie in ruins and be replaced with something else. For commercial brokerage firm Eastern Consolidated, this idea will become a reality for the once-mighty business.
The Real Deal reports that Eastern Consolidated will shut down permanently next month, the company’s founders said Friday.
Eastern Consolidated’s married-couple founders Peter Hauspurg and Danu Paris tried working with investment bank Kimberlite to find a buyer. They didn’t find any offers they found adequate, struggling to find a deal with favorable terms, the Commercial Observer reported. It’s unknown who tried buying the firm.
“We went to the logical suspects,” Hauspurg said.
The shutdown comes amid a turbulent time for the brokerage business in New York, according to the Commercial Observer. RKF recently sold to the now publicly-traded Newmark Group and Town Residential announced it was closing for good in April.
Things weren’t going well for the company though. While their retail and capital markets divisions did okay, the investment sales division was down, commensurate with the rest of the market, according to The Real Deal.
The climate for midrange firms focused on the middle market like Eastern is “not getting any better,” Hauspurg said. Indeed, there have been a number of dramatic moves at similarly sized firms, including the recent announcement that RKF was being sold to Newmark Group, and MHP Real Estate Services selling off a large chunk of itself to Banyan Street Capital. Moreover, in the residential sector, Town announced that it was shutting down its sale and leasing division in April.
The market should expect to see some of the biggest names in the business on the market, including Brian Ezratty, who worked for the company over three decades, Adelaide Polsinelli, James Famularo, Robin Abrams, Adam Hakim, Ron Solarz and Matt Sparks.
Paris and Hauspurg said want to stay in business for the next month-and-a-half to help the firm as it tries moving forward. Staff would get severance packages.
Hauspurg and Paris founded Eastern Consolidated in 1981 and built it into a full-service commercial real estate company.
For decades, Eastern Consolidated sold office buildings, development sites and assemblages for future international hotels and office towers, and multifamily properties throughout the entirety of New York.