Century 21 Headquarters Leaving O.C. for New Jersey

Century 21 Real Estate Corp., the brokerage giant founded by two Orange County realtors 24 years ago, will move its headquarters to New Jersey as part of a massive restructuring, the company’s new owners said Tuesday.

The loss of such a prestigious firm with a national presence--while having minimal job impact with fewer than 200 workers affected--will further weaken the image of Orange County and is a setback to Southern California’s efforts to retain businesses, analysts said.

“It’s a shame. It’s a blow when a visible company leaves town, no doubt about it,” said Tim Cooley, president of Partnership 2010, an economic development group.

“Forget about the number of jobs,” he said. “It’s like losing Taco Bell”--another high-profile Orange County company that once threatened to leave.

It was unclear Tuesday how many of the 163 workers located in the company’s office tower headquarters in Irvine would be asked to relocate to New Jersey or given jobs at other company divisions, officials said.

Real estate brokers who work at any of the company’s 6,000 franchises will not be affected by the move, which is expected to be completed by March, officials said.

Known for its trademark gold coats, Century 21 is now one of the largest real estate brokerages in the world, with more than 60,000 agents in places such as Paris, Ireland and Japan.

A longtime Southern California company and pioneer of the real estate franchising concept, Century 21 was founded in 1971 in Santa Ana by brokers Marsh Fisher and Art Bartlett who, with $6,000, hired a part-time bookkeeper and set up a small office on Broadway.

The company grew quickly and by the end of its first year had 17 offices in Southern California with the Century 21 name.

“It was started on a shoestring,” said Fisher, now 69 and founder of a computer company in Irvine. “Orange County was a natural spot for Century 21--the real estate business here was excellent.”

Century 21 has had various owners since its founding. It went public in October, 1977, on the Nasdaq market but merged in 1979 with TransWorld Corp., a New York-based food and lodging chain. The company reported revenue of $130 million last year.

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Century 21 was acquired in early June by Hospitality Franchise Systems of Parsippany, N.J., from Metropolitan Life Insurance Co. of New York for $200 million in cash and stock. It later sold a 12.5% stake to new chief executive officer and MTV founder Robert W. Pittman and two associates.

“We are committed to transforming Century 21 from a sleeping giant to one of the most entrepreneurial companies anywhere,” said new chairman John Snodgrass, who told workers of the New Jersey move Tuesday morning. “The move is part of a consolidation strategy--it is not a reflection of the employees here in Irvine.”

Century 21 employees, some of whom had been with the company for more than 20 years, gathered at a nearby Red Lion hotel to hear the news.

“A lot of us were crying--this is such a great company,” said Janifer Machinsky, a Century 21 receptionist. “We were stunned. They said they would try to take as many of us as possible but not many of us want to go to New Jersey.”

Snodgrass said about 30 workers were interested in leaving California.

Officials at other Southern California real estate firms said they may add Century 21 workers to their payrolls.

“It should give all real estate companies an opportunity to hire some good people who don’t want to leave California,” said Chandler Barton, president of Mission Viejo-based Coldwell Banker Corp., with more than 2,400 offices worldwide.

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Although company officials in early June had assured workers that the company would stay put, rumors had swirled for weeks that the company would relocate.

As part of the restructuring, Century 21 will close two of its six national divisions. One of the four remaining divisions will be located in Orange County, the company said. Regional directors and general managers at division offices will focus on direct contract with brokers instead of administrative tasks.

Century 21 currently occupies four floors of a 13-story building at 2601 S.E. Main St. in Irvine. The building is owned by the company’s former owner Met Life, and the lease expires in 1997, company officials said. It was unclear how the lease would be negotiated.

Laurie Wightman, owner of a Century 21 brokerage in Cypress, said she was not worried about the company’s headquarters being in New Jersey.

“We have very little contact with them,” she said. “And Century 21 is a national company. They are as strong on the East Coast as they are out here.”

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Still, Fisher, one of the original founders of Century 21, said it was too bad the company was leaving. Fisher said that with the move, Orange County loses a piece of its history.

“When we started this company, half of Orange County was covered with orange groves,” said Fisher, whose voiced choked with emotion as he recalled the early days.

“Guess it’s a little like losing the orange groves,” he said. “Century 21 had its roots here.”