The deal for The Brokery to acquire the Arizona division of Kenneth James Realty started over a cheeseburger.
Four weeks ago, Tucker Blalock, co-founder of The Brokery, and Karl Freund, founder of Kenneth James, met for the first time at The Global Ambassador, a new luxury hotel in Phoenix's Arcadia neighborhood.
The two were introduced through a mutual friend and found out their goals were in sync. Weeks later, a deal was struck for the two Arizona firms to operate under The Brokery name.
The acquisition is expected to finalize on Nov. 1, but agent transition is already underway, Blalock and Freund told Homes.com.
"We quickly recognized the synergies between Kenneth James Realty and The Brokery," Blalock said. "This move is a major step toward solidifying our position as the go-to local independent brokerage in the Valley.”
The Brokery will grow from a team of 110 to 160 agents, and the combined brokerages will have an annual sales volume of approximately $650 million.
Two firms aim to become 'go-to local company'
The Brokery was founded in 2017. Blalock told Homes.com that his firm has grown organically up to this point. The firm, on average, handles home sales at $1 million and above in high-end neighborhoods in Phoenix and Scottsdale.
Blalock and fellow co-founder Oleg Bortman will retain ownership of The Brokery. Freund will be the director of agent development, which he said involves sales and marketing training.
"We see ourselves as a bold alternative to corporate, tech-driven brokerages — offering instead a highly personal, relationship-focused approach," Bortman said in a statement.
Freund started Kenneth James in 2014. He said he has been approached by several larger brokerages interested in a deal, but none aligned with his vision.
This transaction comes as larger industry giants continue to grow even larger through acquisitions. Last month, Compass reached a deal to purchase rival Anywhere Real Estate that would bring its combined value to about $10 billion upon closing in the second half of 2026.
Freund said the opportunity to join The Brokery gave him and his agents a chance to grow with an independent local firm that had the high-level tools offered at larger brokerages.
"We really want to plant our flag as the go-to local company here in Arizona," Blalock said.