Douglas Elliman sells property management division for $85 million

The deal closed on October 24, the same day it was signed U.S. Securities and Exchange Commission submit shows.

Douglas Elliman was the subject of a rumored takeover by Real estate everywhere earlier this year – before Anywhere was ultimately acquired by Compass.

Elliman said it expects to report a profit of more than $75 million from sales in the fourth quarter. The company plans to use the proceeds, along with existing cash, to pay down debt it issued to Kennedy Lewis last year.

As part of the transaction, PMG Holdings will continue to use the Douglas Elliman name for its property management services under a five-year licensing agreement.

The two companies will also maintain their referral relationship, allowing Elliman’s brokerage operations and PMG’s management department to continue to collaborate on customer service.

Elliman agreed to a five-year non-compete agreement in New York, Texas and other areas where Associa operates.

The terms also restrict Elliman from poaching employees or customers affiliated with PMG or its former property management unit.

Elliman’s property management division oversaw cooperative, condominium and rental buildings in New York and other markets.