The Virginian-Pilot
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TowneBank announced Monday that its real estate sales subsidiary is merging with two other Hampton Roads real estate firms in an attempt to extend the institution's reach amid a flagging local housing market.
The Portsmouth-based bank will merge GSH Real Estate, which it acquired in 2004, with Virginia Beach-based Prudential Decker Realty and Prudential McCardle Realty in Williamsburg.
The new Virginia Beach-based real estate company will be named Prudential Towne Realty and will have exclusive rights to the Prudential name in southeastern Virginia.
The bank will have a 65 percent ownership in the new firm, said G. Robert Aston Jr., the bank's chairman and chief executive officer. The balance will be held by the former owners of the two Prudential firms.
The merger continues TowneBank's expansion into housing-related business. A year ago, the institution bought an Outer Banks manager of resort properties as a way to expand its property management services.
Having a robust real estate brokerage will help the bank capture a larger share of home loans in the area, Aston said.
"It helps to feed our core banking business," he said, while allowing three merged companies to adjust to the slumping housing market.
Aston said the affiliation with a national real estate firm that has a robust Internet presence enhances TowneBank's ability to attract homebuyers from outside Hampton Roads.
The new real estate company will have more than 600 agents and staff, he said.
The merger will allow the firms to combine some of their offices. As many 30 positions could be eliminated, he said.
Barbara Wolcott, president and chief executive of Prudential Decker Realty, will become chairman and chief executive of the new entity.
She said the merger had been in the works since early last year and a deal was reached Friday.
"We all recognized that particularly in the economic times it just made good sense to bring together the resources of all four companies," Wolcott said.
Kimber Smith and Carol "Randy" Smith, formerly of Prudential McCa rdle Realty, will become president and senior vice president respectively of the company's operations on the Peninsula.
For the nine months ending Sept. 30, 2008, TowneBank's income in real estate brokerage and property management was $6.8 million, up nearly 60 percent from the $4.3 million it earned in that sector during the same period in 2007.
Part of the increase was due to the company's purchase of the Outer Banks property management firm.
"We all know the past couple of years have been a little rocky," Aston told a group of more than 400 agents and staff assembled Monday morning at the Sheraton Norfolk Waterside Hotel. "We are committed to putting the bank's resources behind this business."
Pilot writer Tom Shean contributed to this report.
Josh Brown, (757) 446-2318, josh.brown@pilotonline.com
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I just dont get it.
I just wonder why so many people post on here that have no idea of what they are talking about. The person that had an issue with their mortgage, do you know whether your situation could have been a mistake. It is definitely the exception not the norm for TowneBank. For every one situation you had, there are hundreds that have been able to experience superior customer service. Just look at how much money TowneBank has put back into the community over the past couple years through charitable contributions. I remember seeing sometime last year in the paper where one of the other local based banks ran an ad in the paper stating they gave back $250,000 to the community. In the same period TowneBank had given close to $1,000,000. Instead of bashing businesses that support our Hampton Roads community, we should be supporting them. Maybe you should bank at RBC so your money is used in Canada.
A one stop shop???
It puzzles me how people can assume a "One Stop Shop" can in anyway serve their best interest. Wow, now that is soooo Naive... Care to buy some swamp land in FL naive!! Perhaps to frame it better....go to Little Joe's...buy a car and let their finance company finance the loan for you...or perhaps....try to buy a new GM car and let GMAC finance it for you.... you'll have to grow up sometime :)
Two Great Companies
Not sure why there is so much animosity on this board and why so many of you feel a merger of two long standing, locally owned, good standing companies is such a negative thing. In my eyes, this merger represents an opportunity for Tidewater citizens to have a “one stop shop” for all their needs, to include banking, investments, mortgages, and real estate. Why is that negative?
"That's because it was
"That's because it was basically forced down their throat like all the other banks that didn't need it."
That's funny. I have to assume you do not understand the process to apply for these funds?
That's because
Excellent point. It does look as though you have missed some very recent history in the form of Towne taking funds from the very same goverment you blame.
That's because it was basically forced down their throat like all the other banks that didn't need it. It's a matter of taking the money or being at a competitive disadvantage in a market inflated by those handouts. More stupid government policy wasting our tax money and it's only looking worse for 2009.
"People just never learn
"People just never learn from history."
Excellent point. It does look as though you have missed some very recent history in the form of Towne taking funds from the very same goverment you blame. They then reinvest this money into one operation that rolls into another such as real estate or insurance. All the while the people who compete against them and keep their hands off of your tax dollars suffer. Ironically it's their own tax dollars that made it possible. Beyond sickening.
Good to see
It's good to see some local business making some moves to improve the market after the government screwed it up so bad. Unfortunately they're going to have to fight yet more detrimental government interference due to the political climate for a while. People just never learn from history.
What did you expect?
He's the mayor.. owns a bank.. of course hes going to ask his friends to build it since they golf together. Thing that boggles me is why isn't there a bid process in place to let other companies have the chance to win the contract. I'm sure it's possible to find another company dying to find a long contract and do it cheaper. Granted Hoffler has a endless supply of equipment that your every day Joe doesn't have. Not like he needs more money.. he owns a $12 million House, trophy/mother-in-law house, and horse stable in Eastern shore with 2 acres of land. Massive painted mural 3 stories tall in foyer with 20+ bathrooms. We had to rush his painting job because Bush was visiting his house. People with power hang out with people with money, thats how the world runs.
MCSEVA - congrats on
MCSEVA - congrats on catching that! You're not the first local person to tell that story. Should have reported them to the board, and checked into legal action against them.
There is no need for Realtors anymore. We have the internets. 6% per transaction, no matter the price? Forget that. Where are travel agents now?
Remember when the papers were quoting David Lehrah of the National Association of Realtors non-stop? Look up his books on Amazon. I replied to every story on here calling him out. He has now admitted that he was a paid shill. No one did due diligence in getting a counter argument. Heck, who goes to an industry salesperson 5 stories in a row to get their information for their articles?
and Virginia Beach repaves streets at the bank
Look at the First Colonial office of Towne Bank and you'll notice that the city is resurfacing the street at the entrance to the bank's building as well as the street running behind the bank that serves as an exit from the building for many.