Town Residential closes today after eight years of Brokerage in NYC. Their CEO Andrew Heiberger rose to success after he built and famously sold Citi-Habitats. This time he could not achieve the same results. So what happened? Back when Andrew opened CH with his partners he had one goal, build a firm to make the leasing process in NYC better for both landlords and tenants. He grew his company on this premise to a Mecca that still stands today.
With Town Andrew aimed to build a firm that he could grow with his past connection and sell for another grand profit. Both firms had turmoil with partners and their own ups and downs. But without a company declaration and mission statement like CH, the former Town Residential was set for failure.
Town is planning on keeping one small office open to run their remaining new development division. This may not last longs, as without a brokerage arm it will be difficult to support the needs of a new development sales campaign. Also without their 600 agents Town will have no salesforce to push these properties. Many people I’ve spoke with suggest that this division is being kept so Town may sell their lucrative development exclusive contracts to other firms as they try to obtain any and all capitol.
This should be a good example for other firms, especially in the current environment. When you build a firm based on profit and exit strategy and not your clients, success will never be obtained. Yes I’m talking to you. Calm down on your growth, investor capitol, profit sharing and brand. Take some time to focus on your clients. Without them you are nothing.