B6 is a boutique middle markets sales brokerage in nyc that’s run by brokerage legend Paul Massey.
Work at a competing nyc brokerage and this rumor was heard from a few different people in my office over the weekend. Anyone else hear anything like this or about other brokerages?
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Yeah Im in the streets right now they said they would comp my entire rent in Chelsea
Heard something similar from a competitor who also started at Massey Knakal. I took it with a grain of salt.
Just saw one of the brokers at my local summer club, said nothing of it.
Because I’m sure the first thing people will say is “Hey man, FYI my firm bounced payroll this week”….
Unrelated, what is a summer club? Members only golf course?
Like a Pool/Beach Club that is only open in the summer. Nothing too fancy.
How big is “payroll” at a brokerage where, presumably, almost all employees besides the secretaries/transaction support are commission only?
Interviewed there two years ago, all brokers get a salary at the Associate level are getting $40k a year. Looking at traded this month they did one $1.2mm deal aka like a $40k check and last month did $6mm so like $200k ish for the brokerage. They're not pulling in enough money at all to afford an office and with 50ish employees I'm sure at least 20 are on salary of say at least $50k that's $20k a week on a low end plus office rent. Could see why they're having cashflow problems.
Big Update - https://therealdeal.com/new-york/2023/08/02/massey-faces-mountain-of-de…
Jesus, that's pretty damning. I know the RealDeal is kind of suspect in their reporting but it's pretty hard to be that off target on something like this. I wonder what happens to all these guys, they have some pretty legit rainmakers. Though I guess every broker was making money in NYC 2017 - 2021
Making money, but not paying bills. Idk how you fall so behind when you got $50mm pre tax a few years ago.
Fast forward a few months later to this original thread post - it's safe to say B6 is toast.
Almost all the brokers/heavy hitters have posted on LinkedIn they're moving to different shops.
You typically don't see the wave that you saw with B6. It's usually a little at a time, I wonder what the breaking point was for so many people who frankly owe a lot of their careers to MK. Not saying you HAVE to stay on a sinking ship but loyalty typically keeps you there for a bit
Sorry to hear your paycheck didn’t come in…
Website has just management on it now, no brokers left. RIP?
I follow a lot of them on Linkedin, they've all left in the last month. Many to Meridian, Matthews, and others. Weirdly enough Paul spoke at Fordham with about founding Massey Knakal so I guess he doesn't care/is not embarrassed by these issues?
It is a tough blow to Paul, who is a good human being, and created and ran the biggest and best CRE brokerage in NYC for close to 2 decades. I don't think anyone wishes him but the best of luck trying to navigate this market. People who worked for MK have gone on to found or lead divisions of 30+ companies most of large, medium and some of small successes, but successes never the less.
I have no doubt he gave his blessing on every recent departure, and there is no ill will. I would recon' he tried like heck to keep them, but maybe he just kept the company afloat so the survivors had time to get off the ship. Much like a good captain.
The lesson for the younger guys and women here is that it is very hard to duplicate success on that magnitude. In hindsight, a local business in NYC was just not dynamic enough to survive 2 black swans such as the 2019 rent laws, and the past 2 years of interest rate hikes. As Patton once said, nobody ever wins defending a position, but by attacking.
For those that don't know, Paul was also involved in a small PE fund that found some good success too, so his eggs aren't just in one basket.
I get he didn't have all eggs in one basket, but if he was doing well he wouldn't be in so much debt. Accomplished broker, but not in a good spot financially just in case they're hiring again and anyone coming out of undergrad is looking for a job now.
While B6 would not be my top recommendation, if there are people who needs jobs, I would recommend B6 over no job clearly.
Also, people have liquidity issues. Especially UHNW individuals, just because he has a bank after him or starting the foreclosure(or whatever) doesn't mean he doedn't have that money elsewhere. I'd say that is a very myopic and simplistic view on debt and personal financial statements/balance sheets.
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