Real estate co-ownership startup Pacaso announced a strategic partnership with luxury brokerage Engel & Völkers on Thursday.
The partnership introduces co-ownership, a new ownership type defined by the Real Estate Standards Organization (RESO) and its members, to the brokerage.
Together, Pacaso and Engel & Völkers, have already sold co-owner luxury homes in Park City, Aspen, Vail, and Malibu.
“As a global brand with a strong presence in so many premier lifestyle markets, we understand the value of presenting new ways for our clients to claim ownership in beautiful properties in beautiful places,” Anthony Hitt, president and CEO of Engel & Völkers Americas said in a statement.
Viewed as an updated version of a time share, Pacaso’s platform brings together a group of eight or fewer co-owners to purchase shares of a single-family home in a luxury vacation destination, which they have access to throughout the year. This co-ownership model is made possible through the creation of property-specific LLCs.
According to Pacaso, real estate agents representing buyers who purchase a share of a Pacaso property will earn a 3% referral commission and have the opportunity to earn equity rewards.
“Agent and brokerage relationships are instrumental in Pacaso’s success and growth,” Marnie Blanco, the vice president of industry relations at Pacaso, said in a statement.
Pacaso said it manages the entire share purchasing process, from scheduling a home tour and answering client questions, to managing inspections, escrow, title, and reporting.
In 2021, the firm’s first full year, Pacaso generated nearly $300 million in revenue and sold approximately 400 Pacaso units, according to the press release. The company currently operates in more than 35 second home designations around the world and has plans to expand to more than 30 new markets in 2022.
“I think we all agree that second home ownership is more desirable than ever,” Paul Benson, the co-founder and CEO of nearly 40 Engel & Völkers offices, said in a statement. “Pacaso has entered the market at the perfect time to offer creative options that allow homeowners to not only enter the second home market, but also to allow well-traveled homeowners options to have multiple properties around the world.”