How a Nashville Brokerage Expanded Its New York Reach

DJ Johnston, who oversees Matthews’ Brooklyn investment sales division, said a “territorial system” proved successful when he was a young broker at the old Massey Knakal Realty Services from 2010 to 2015.

“The geography focus keeps brokers in their lane, because when you have a bunch of competitive people come together they instinctively want to compete for the business. But, if you have the structure and you have the right management, that’s what keeps people focused on their own business,” said Johnston, who arrived at Matthews in the fall after five years as partner at B6, which, incidentally, Massey Knakal co-founder Paul Massey started. “It promotes collaboration naturally.” 

Johnston along with Cory Rosenthal and Brock Emmetsberger departed B6 in the late summer to spearhead Matthews’ New York expansion. The brokerage, which was founded by Kyle Matthews in 2015, then added six brokers from B6: Maria “Mimi” D’Angelo, Jermaine Pugh, Bobby Lawrence, Henry Hill, Will Cheng and Jameson Hill. All have dedicated geographic or speciality roles. 

While other young brokerage shops may have been reluctant to set up shop in New York post-pandemic, with much uncertainty about how hybrid working trends may affect the city economically, Kyle Matthews decided during a visit in December 2022 during ICSC’s annual conference at the Javits Center that now was an opportune time. 

“With interest rates on the rise and sales volume down a lot of people questioned whether or not it was the right time, and he thought it was a perfect opportunity to jump in while things were slowing,” Emmetsberger said.

Cory Rosenthal, national director of multifamily at Matthews who also leads the operations of the New York office, said the territory system he witnessed during a nearly 12-year run at Massey Knakal that ended in late 2014 was effective because brokers aggregated data not readily available at the time. He noted that with commercial real estate data now more easily accessible, having true specialists for certain geographic markets or property sectors, like Johnston and Emmetsberger, is essential for a growing firm like Matthews because it does not have exclusivity agreements. 

“Unless you’re really an expert at another level and another layer beyond what the rest of the world can pull in terms of data, you’re not providing any value,” Rosenthal said. “We want to specialize within our markets in a way that exceeds what our competition is doing.”

Matthews is planning to replicate its geographic and asset-type approach with Manhattan and Brooklyn when it adds specialists focused on investment sales in Queens and the Bronx. Rosenthal said there is no set timetable for this, and he wants to make sure to bring in the right people for these roles before expanding into other boroughs. 

For now, Matthews is making its presence known in Manhattan and Brooklyn while still finding some deals in the Bronx despite not having dedicated teams in place yet for that market. Since the arrival of Rosenthal, Johnson and Emmetsberger, Matthews has listed 30 buildings in New York for $158 million. 

In the Manhattan market, Matthews’ team strategy involves linking up a broker whose speciality is office sales and pairing that broker with someone who has experience with a specific neighborhood, according to Emmetsberger. He said having this set strategy helps assure that the right people are hired. 

‘We’re not just breaking a dozen eggs to make an omelette,” Emmetsberger said. “People will be coming in with purpose and without duplicating any other skill sets that we have.” 

Some of Matthews’ featured Manhattan  listings executed early on by the New York City team included office buildings at 497 Broome Street and 109-11 West 24th Street along with a multifamily property at 170 Second Avenue. Matthews also was tapped to sell a residential asset at 137 Prospect Avenue in Gowanus, Brooklyn, and a six-building portfolio in the Bronx. 

Rosenthal said the long-term goal is to make Matthews’ New York City office a full-service brokerage firm with brokers for debt transactions and leasing deals. As Matthews eyes expansion and a likely bigger space from its current office at 575 Fifth Avenue when its lease expires in 18 months, the team mindset will remain front and center.

“We want people who are passionate about it, love it and want to wake up every day and have a good time doing it,” Rosenthal said. “I enjoy working with these guys and want people with that same mindset.” 

Andrew Coen can be reached at acoen@commercialobserver.com.