Compass, whose Southern California presence quickly expanded to nearly three dozen offices, has closed its Hancock Park location just a year after opening it, The Real Deal has learned.
The Softbank-backed brokerage shuttered the office at 156 North Larchmont Boulevard, and will consolidate the handful of agents there into the firm’s flagship Los Angeles space in Beverly Hills.
In Southern California alone, the firm has expanded to 33 offices — not including the Hancock Park space — since it opened in Beverly Hills four years ago. Pacific Union intended to open the Hancock Park office in the Keystone Building last summer, to accommodate 20 agents.
But Compass acquired Pacific Union in August 2018 in a blockbuster deal, and coupled with ongoing renovations of the historic building, the opening was delayed until December.
Bret Parsons, former assistant manager at the Hancock Park office who still works at Compass, confirmed the office closure. A spokesperson for the company declined to comment.
The New York-based Compass has been on a nationwide expansion tear, which has seen it grow into one of the largest brokerages nationwide. The venture capital-backed firm, now valued at $6.4 billion, is preparing for an initial public offering.
Compass isn’t the only brokerage in L.A. shedding some office space. In July, sources said Coldwell Banker, one of the most entrenched agencies in the city, is also consolidating its two offices in Beverly Hills into its larger “North Office” on Canon Drive, a move that would relocate about 150 brokers.
The consolidation comes as home sales in L.A. have been slowing, and high-end listings have been lingering on the market. Despite that slowdown, Compass has been actively recruiting and expanding its roster of agents in Los Angeles.
Recently, the firm has poached at least 22 agents and staff from Coldwell Banker alone. Among those 22 were top-producers Chris Cortazzo, who brought 16 agents with him; and Ginger Glass.