Henry S. Miller Cos. Beefs Up Commercial Strategy with Residential Division Sale

Vance C. Miller, CEO and chairman, tells GlobeSt.com that many a suitor has been turned away through the years, but the timing hadn't been right until seven weeks ago when NRT came knocking. More importantly, he says, the timing is right to expand commercial development in Texas and enter markets of surrounding states.

Henry S. Miller Commercial has two shopping centers under construction in Texas, but is plotting another 10 ground-breakings this year of community-based convenience centers, Miller says. The deals are still in the option stage and not ready to be announced. "It's going to be a pretty interesting program," he assures GlobeSt.com.

What it means to Henry S. Miller Commercial is more brokers most likely will be brought on board. The firm's brokerage business will remain strictly a Texas proposition as development efforts definitely head across the state's borders, says Miller. Oklahoma is the only state that Miller is revealing as a development target; the rest will be announced later as the plan unfolds. "We're rolling," he says in an interview shortly after the NRT sales announcement had been made to 800 associates at a luncheon at Dallas' Adam's Mark.

The estimated 400-employee, 11-office Perry & Butler Realty in Denver will merge with Coldwell Banker Residential Brokerage of Colorado. Houston's eight sales offices go to Coldwell Banker United Realtors and Austin's four offices will be part of Coldwell Banker Richard Smith Realtors. Coldwell Banker Residential Brokerage of Dallas-Ft. Worth gets 19 sales offices under the structuring. Heidi Holman, former president of Henry S. Miller, has been named president of a new Henry S. Miller division of Coldwell Banker in Dallas. The buyer is a joint venture of Apollo Management LP and Cendant.

Miller, whose grandfather started the business in 1914, says his father supports the transition to strictly commercial real estate. The father-son team were honored in an emotional tribute at yesterday's luncheon. "We love the people," he explains to GlobeSt.com. But, he acknowledges that it's time to let go. The attending 800 associates, part of the metroplex's third-largest residential real estate company, earned $50 million in 18,000 residential transactions for the company last year. "They are the best in the business," he says. And, the sale is a way of giving associates access to tools to do business in the 21st century. "They need a national network," Miller emphasizes.

The residential business kicked off in 1971 with eight sales associates in Dallas, recalls Miller. In the past nine years, there have been nine acquisitions and the launch of the mortgage company, which maintains headquarters in Dallas and Denver.

Just as Miller had insisted the deal be done "quick and quiet," he is pretty mum about how much the sale has fetched. "It was a lot of money," he tells GlobeSt.com. "It's a substantial acquisition ... 1,500 people and a big mortgage banking company." American West Mortgage had completed $400 million in year 2000 transactions. Perry & Butler Realty sealed $700 million in deals last year while the three-city Texas teams accounted for $2.75 billion in closings.