Warburg Realty Forms Partnerships and Bonds to Expand
Two years into a reorganization of the family-run firm, and one year into its alliance with Wallack Management, Warburg Realty is on the move. Not bad for a company operating in its third century, yet committed to a modern approach, including working with a like-minded management company.
Last year, Warburg announced an alliance with residential building manager Wallack Management, through which Wallack-managed buildings are assigned broker specialists from Warburg. And Warburg is the preferred brokerage company for those buildings. However, each company remains independent.
“I see this partnership as the outgrowth of a really exciting period of growth and modernization for our company,” said Clelia Warburg Peters, president of Warburg Realty.
The partnership was launched at the urging of Warburg partner Linda Reiner, who had been a friend of Burt Wallack, president of Wallack Management, for many years.
“We always kidded each other over the years about partnering the companies or doing something together,” Reiner said. “This partnership was organic and natural. They didn’t need for us to change, and we didn’t need for them to change. We just needed to coalesce.”
Both companies are small by choice and family-owned, she notes. And both are selective about the properties they work with.
“Burt doesn’t believe that more is better,” Reiner said. “And neither do we.” And both firms share a commitment to building in-depth knowledge and relationships.
“From the beginning, my vision revolved around staying small, at least by New York standards. It had enabled us to focus on quality rather than quantity,” said Frederick Warburg Peters, CEO of Warburg Realty. “Warburg today handles listings of every size with the utmost expertise and professionalism. We can only do that because we hand-pick every agent.
Under the alliance, an experienced Warburg broker is assigned to each building, monitoring market trends, tracking when units trade, and creating a relationship with the Wallack manager.
“I’ve spoken with other brokerages about this program, and for most brokerages this is purely a marketing and recruiting play. There isn’t much deal flow that comes from it. The surprise for me is how effective our relationship with Wallack is starting to be,” Clelia W. Peters said.
The Wallack program is different from other broker specialists, Clelia W. Peters noted. In the early days, Warburg’s team visited and conducted in-depth research on every building, and worked with Wallack, the super, and in some cases the boards to produce research reports on each building. Those research reports are available to the boards and to each building tenant, and are becoming standard procedure for all Warburg properties.
“We chose to partner exclusively with Warburg because of their longevity of ownership and the expertise their agents bring to the table,” Burt Wallack said. “The building specialists know all of their property’s intricacies very well, from the amenities they offer to where they measure up in the current market. They are, and continue to be, an excellent resource for current and prospective residents.”
Most important, Clelia W. Peters adds, is that the broker was involved in the reports, so when a resident calls a Warburg broker specialist, he or she will be deeply informed about the building.
“This is not just a marketing relationship. They have the insight coming directly from Burt and the board,” Clelia W. Peters adds.
Though the partnership doesn’t include Wallack’s rental units, Warburg did take on one building that had several vacancies.
“We rephotographed it, repositioned it, and produced new marketing materials. Within a week, we’d rented two new units, and a third is coming,” Clelia W. Peters said. “It’s a win for Wallack, a win for us, and most significantly, a win for the owners.”
The service continues beyond matching buyers and sellers to making sure that prospective buyers are fully prepared to meet the all-important co-op board. “Warburg is known for its accurate, in-depth packages,” Reiner said.
“We all know how to do a board package, which isn’t true of most companies. We have oversight—every single package we send out comes before a second or third set of eyes before it leaves the office,” Reiner said.
The attention to detail and lack of bureaucracy in both firms also help keep the partnership running smoothly. Frederick W. Peters remains an active broker among the 140 agents at his company, with his own listings. Wallack is equally involved with all aspects of his firm.
“Burt talks about how he likes to be the one at his desk answering calls,” Clelia W. Peters adds. “He knows all of the buildings intimately and many of the tenants as well. It’s very similar to hearing Fred talk to the brokers at this company,”
Warburg achieves that quality through selective hiring and an unusually supportive structure for its brokers.
“Our brokers are smart, sophisticated people, and they’re being overseen by smart, sophisticated people. More than half have an advanced degree,” Clelia W. Peters said. “These are generally people who have made a choice to work in this field and do it really well. That makes a big difference.”
And while many brokerage firms have created team structures, in which the agent retains and pays for marketing and administrative support, Warburg’s in-house team provides those services.
“We see ourselves as a business-to-business service provider, serving our agents,” Clelia W. Peters said. “There are companies that don’t treat agents with the respect they deserve. We pay our top agents the same split as other firms pay their team leaders, but we are their team. Several broker specialists have junior agents to give them more reach. But when they need a team member to manage their marketing or board package, we’re here.”
The next question is expansion. In addition to its Madison Avenue headquarters Warburg has opened offices in Tribeca and Flatiron, and also has an alliance with a firm in the Hamptons. And the senior management occasionally discusses whether to grow further.
“We are looking to grow, but strategically,” Clelia W. Peters said. “We’re not looking to grow in a random fashion.”
“Staying this size is a dilemma,” Reiner mused. “On one side, you feel pride and a sense of authorship. You know exactly what the brand stands for. On the other side, you grow, and while your profits grow, you might feel it get a little away from you. It’s hard to know which model to emulate.”
To help the Wallack program grow, the firm is embarking on a marketing program that will be overseen by the corporate office to avoid bombarding tenants and ensure that they are adding value to the buildings. In addition, Warburg is working with Perchwell, a listing and analytics platform, and is looking at bringing more technology into the marketing process. But what won’t change is Warburg’s ethos, one that has created strong partnerships and fed its own growth.
“We are now poised to bring our old-world values and diligence and to combine that with a fresh, modern approach to conducting business,” Clelia W. Peters said. “I don’t think there is another firm that can offer the best of both old and new.”
Warburg Realty
654 Madison Avenue
New York, NY 10065
212-439-4500
Add Comment