City Connections Realty (CCR), announced today that the company has merged with DSA Realty. The newly combined company will be operating as “City Connections Realty” under the firm’s business model and reside at CCR’s office space located at 71 West 23rd Street. DSA Realty’s office location at 113 East 12th will close at the end of the month.
DSA Realty’s co-founder Arik Lifshitz will be a minority equity partner. No further financial terms have been disclosed. Lifshitz will continue to be CEO of DSA Property Group, located at 60 Madison Avenue. His role at CCR will be mostly behind the scenes and focused on commercial business development.
Approximately 35 agents from DSA Realty, roughly 80 percent of the firm, will join City Connections’ 95 current agents and work together out of that firm’s 71 W. 23rd Street office. Jesse Rhinier DSA Realty’s president and a co-chair of the REBNY Rental Committee, was instrumental in the negotiations and will be part of the merger as well.
In addition to agents, DSA Realty will be bringing over 128 exclusive rental buildings to CCR on an exclusive basis adding to the over 130 exclusive rental buildings already under the CCR umbrella.
CCR’s founder, David Schlamm, will remain President and CEO of CCR and will continue running the day-to-day operations along with CCR’s current management team.
“I am very excited about this merger for many reasons. I have gotten to know Arik over the years and his values are very much aligned with mine. DSA Property Group, of which Arik is the CEO, is a prominent player in the NYC multifamily arena which brings a more diverse menu of opportunities for all our agents to expand their business. The merging of our two firms will significantly increase the number of rental buildings that City Connections Realty represents on an exclusive basis and will also help our commercial division explore new areas of business,” said Schlamm. “Residential sales is still our biggest revenue driver, but this will give us a nice balance. We anticipate to be able to serve a greater part of the NYC market and continue to attract experienced/ethical agents.”
Schlamm adds that he plans on looking at other deals to continually expand his firm’s growth via merges and acquisitions.
“I was drawn to CCR through my relationship with David, who shares many of the same values as I do and that consideration was the highest priority. I have always trusted my gut over my financial models
and this move feels right. CCR’s split model is highly attractive for experienced agents, and with our combined resources and economies of scale it’s truly a mutually beneficial,” said Lifshitz.
“I am so proud of the great job we have done at DSA Realty, especially considering it was all on the job training. From our first day we were committed to growing a great company with a great reputation — and we did that with limited resources and experience. However, as my primary focus was always on our property holdings, I feel I have reached the limit of where I can take DSA Realty on my own. Together David and I will take our combined firm to a new level and our entire team will benefit greatly from this merger.”
Lifshitz said by folding into CCR, new avenues of growth will open up for all.
“With this deal we are skipping 10 years of organic growth overnight.”
DSA Realty was founded nine years ago and CCR has been in business for 28 years.
City Connections Realty merges with DSA Realty : Real Estate Weekly