Signs of growth in real estate

Nov 04, 2009 (Cape Cod Times - McClatchy-Tribune Information Services via COMTEX) -- DOWB | Quote | Chart | News | PowerRating -- Kinlin Grover GMAC, one of the Cape's largest real estate agencies, announced yesterday that it is getting even bigger.

Kinlin Grover is merging with Atlantic Realty, formerly affiliated with Coldwell Banker, creating a single company that will control nearly one-third of the market on the Lower Cape, according to market share numbers provided by the company.

Atlantic Realty's 22 agents will transfer to the Brewster and Orleans offices of Kinlin Grover. Kinlin Grover currently employs 250 agents in 11 offices across the Cape.

The owners of Kinlin Grover, Rhode Island-based Randall Realtors GMAC, think that "when the economy is a little bit softer, that perhaps this is a good time to grow and invest," said Bett McCar-thy, executive vice president of Kinlin Grover. "They have the mindset that they would like us to grow even beyond where we are now."

Randall Realtors, in fact, acquired Kinlin Grover just four months ago.

And Randall Realtors is not the only agency pursuing this kind of strategic growth.

"It's been happening not just this year, but for the past several years," McCarthy said. "People are consolidating."

Combining operations can allow two companies to reach the same number of customers while cutting down on total overhead expenses, she said.

"You can bring more to your agents if you're a larger group -- economies of scale," she said.

Indeed, for the past few years, as the housing market on Cape Cod has been contracting, some real estate businesses have seen the downturn as the perfect time to expand.

In January, William Raveis Real Estate, Mortgage and Insurance acquired The Real Estate Company, a rental-focused company based on the Lower Cape.

Since last fall, Hyannis agency Century 21 Shoreland has executed three mergers, with agencies from Centerville to Provincetown.

"The ultimate goal, certainly, is that you are able to consolidate and pick up organizations for a fraction of what their value might be in the better market," said Matthew Weider, president of Century 21 Shoreland.

When the economy improves, he said, his company should be well-positioned to grab a greater share of a growing market.

Not all agencies that are expanding are doing so through mergers and acquisitions.

Despite the sluggish economy, Today Real Estate has launched a new division, Today Supreme Homes, which specializes in high-end and waterfront properties.

And the Cape area growth may not be over.

Randall Realtors and Kinlin Grover have nothing currently in the works, but "certainly have their eyes open to look for other things," McCarthy said.

The company may be looking to expand over the bridge into Plymouth and onto the islands, she said.

And there is a definite possibility that Century 21 will take more action, Weider said.

"We're always seeking good opportunities," he said.

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