Unique Homes Changes Hands; Terms Not Disclosed : Merrill Lynch Buys Newport Real Estate Firm

Entering the lucrative Newport Beach real estate market, Merrill Lynch Realty purchased Unique Homes Inc. on Tuesday, planning to use the acquisition to become the largest residential real estate firm in the Newport Beach area.

Terms of the sale were not disclosed.

Unique Homes, with $52 million in net sales last year, has changed its name to Merrill Lynch Realty and will move from an 1,800-square-foot office in Corona del Mar to 7,000-square-foot quarters in the Bank of Newport Building. By the end of the year, the company hopes to double its sales and staff, which now includes 35 agents.

The purchase fits Merrill Lynch’s style of buying its way into new markets. “That’s where we get local expertise to build,” said George Rathman, a regional president of Merrill Lynch.

Its Newport Beach branch office will be the company’s ninth in Orange County. Publicly owned Merrill Lynch, based in Stamford, Conn., operates 403 offices in 19 states and had 1986 sales of $18 billion.

James Wood, who founded Unique Homes 17 years ago and built it into what he said was the fourth largest residential real estate firm in Newport Beach, will stay as manager for at least two years.

Competitors said Merrill Lynch’s presence will not adversely affect the local market. “I don’t look for (the office) to be as great a competitor as it was” when it was locally owned, said Don DeThomas, office manager of George Elkins Co.