There are still some shareholders through Vector, but “being that Howard is the majority shareholder, Dottie is really answering to Howard,” said a source familiar with the firm’s ownership structure.ĭropping the affiliation with Prudential has removed some of the bureaucracy, sources said. With Prudential no longer involved, the buck now stops with Lorber, sources said. So what does this ownership arrangement mean for operations at Elliman? New Valley reportedly increased its ownership stake to more than 50 percent by investing an additional $1.4 million between 20.Įlliman declined to comment on its ownership structure. Following the franchise agreement with Prudential, the new company changed its name to Prudential Douglas Elliman. Then, in 2003, the partners bought Insignia Douglas Elliman, as it was then-called, for a reported $72 million. New Valley’s association with Herman began in 2000, when it paid $1.7 million for a 37.2 percent ownership stake in Herman’s B&H Associates of NY, formerly known as Prudential Long Island Realty, according to the stockholder’s report. And until recently, the Prudential franchise owned 20 percent of the company, but Herman and Vector have dropped that affiliation and reportedly bought out Prudential’s stake in the company. In 2011, Vector - which owns its stake through a subsidiary called New Valley - reported a pre-tax income of $16.6 million from its interest in Elliman, according to a stockholder’s report.Įlliman CEO Dottie Herman, meanwhile, is said to own approximately 30 percent of the company. This month, The Real Deal looked at New York City firms with a variety of different ownership structures to see who controls the purse strings and what that means for getting deals done.ĭouglas Elliman (formerly known as Prudential Douglas Elliman) is one of the city’s largest residential firms, and has one of its most complex ownership structures.įifty percent of the firm is owned by chairman Howard Lorber’s Florida-based Vector Group, a publicly traded company best-known for its association with tobacco giant the Liggett Group. Individual owners, for example, tend to have more control over the company but less cash-flow, while firms with large corporate parents may have the opposite. These structures dictate, to a large extent, how firms operate, make decisions and divvy up the profits.
Still other owners have silent parents, or offer their brokers the opportunity to own a piece of the firm. Others have large, publicly traded corporate parents. Many of the city’s residential brokerages, for example, have long been privately owned by families. But behind the scenes, even firms of similar sizes and reputations can have vastly different ownership structures. To outsiders, it may be hard to distinguish between New York City’s big real estate firms.
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