Red Carpet Realty of S.D. Is Sold to Canadian Firm

NRS National Real Estate Service Inc., one of Canada’s largest real estate brokerages, announced plans Wednesday to greatly expand its U.S. network by buying Red Carpet Holding Co. of San Diego and two other firms.

The Vancouver-based company also said it will move its U.S. headquarters from Irvine to San Diego within the next few months.

When completed, the deal will triple the size of NRS to more than 9,000 sales representatives and 700 offices across North America. Company spokeswoman Sherry Quan said NRS will rank “fifth or sixth” in size among real estate franchisers in the United States. The largest, Irvine-based Century 21 Real Estate Corp., has more than 60,000 agents.

The terms of the acquisitions were not disclosed, although the company bought the three companies with operating capital and not a loan, Quan said.

Privately held NRS had gross sales of about $365 million in 1989 and has not disclosed more recent figures, she said.

Red Carpet, founded in 1966, has 330 offices and 4,800 sales agents nationally. As part of the deal, NRS will acquire the assets of Boston-based Gallery of Homes Inc., which has a franchise network of 160 offices and 1,600 agents, and Detroit-based Tranex Relocation Services Inc., a referral network with 675 employees.

All three companies are owned by the Central Holding Co. of Detroit. Federal regulators had given Central Holding until July, 1994, to sell the three real estate operations because it also owns the financially troubled Colonial Central Savings Bank. Colonial Savings has been working with regulators to avoid a federal takeover. The thrift’s losses have prevented it from meeting federal guidelines.