In just two years, Carolwood Estates has captured an astonishing 37% of Los Angeles’ $20 million-plus home market. The firm’s rapid rise showcases a masterclass in luxury real estate brokerage – one built on discretion, collaboration, and an unwavering focus on quality over quantity.
Nick Segal, broker of record at Carolwood Estates and a 35-year veteran of Los Angeles luxury real estate, brings extensive experience to his third successful brokerage venture. His approach challenges conventional wisdom about what drives success in high-end real estate.
“We are the epitome of discretion. We do not need to pound our chest. We do not need to be on TV,” says Segal. “Our clients are the stars. The homes are the stars.”
Founded by CEO Drew Fenton and CMO Ed Leyson with Segal as Managing Broker, Carolwood Estates has quickly established itself as a leader in luxury real estate. Segal credits much of the company’s success to Fenton’s vision: “Drew’s ability to create an esthetic… we are the epitome of discretion,” he notes with clear admiration.
This philosophy has propelled Carolwood Estates to become the second-highest-grossing brokerage in Los Angeles by volume in 2024, according to the LA Business Journal – despite having just a fraction of the agents employed by market leader Compass. With $3.2 billion in sales volume for 2024 – doubling their debut performance of $1.6 billion in 2023 – Carolwood Estates’ influence in the ultra-luxury segment is undeniable.
What truly sets Carolwood Estates apart is their ability to handle both sides of high-value transactions. Approximately 23-25% of Carolwood Estates’ deals are transacted in-house, where they represent both the buyer and seller.
“It’s all relational,” notes Segal. “They trust us. They trust that we have the reach, the expertise, and the ability to put deals together.”
This advantage is bolstered by their approach to internal collaboration. The firm holds regular office meetings where agents share upcoming listings that haven’t yet hit the market.
“What do we have coming on the market? And there can be anywhere between $100 and $300 million of inventory that we’re just peppering in the environment,” Segal explains. “That’s power – the ability to have access to that inventory and the way we share it.”
This level of internal trust creates a competitive advantage that’s difficult to replicate. The firm’s ability to connect ultra-wealthy clients with properties before they hit the market creates a value proposition that’s particularly appealing to privacy-conscious billionaires.
Despite their rapid success, Carolwood Estates maintains a selective approach to growth. The firm has expanded to approximately 180 associates, but turns away many who seek to join their ranks.
“We turn down probably $2 million in annual revenue because they aren’t cultural fits, and we don’t feel they’re going to support the brand and identity and dynamic,” Segal reveals.
This selectivity begins at the top, with leadership demonstrating the collaborative culture they expect from associates. The result is a team that polices itself and takes pride in the exclusivity of their affiliation.
“We’re all our best keepers, and we hold each other to that standard,” says Segal. “People are proud of being in the environment. They know it’s tough to get into this environment, and they do their part as ambassadors of the company.”
The recent Los Angeles wildfires have significantly impacted communities and altered real estate dynamics across the region. Beyond the tragic personal losses, these events have created notable market shifts that Carolwood Estates has been helping clients navigate.
“The fires have created a catalyst in the marketplace,” Segal notes, as displaced homeowners seek new properties. This urgent demand has driven prices in high-value locations from approximately $1,700 per square foot to $2,200 per square foot.
“Finished product has become highly desirable – 21-day escrows, multiple offers, all cash for the convenience of getting into a home,” explains Segal.
Carolwood Estates has focused on guiding clients through difficult decisions about whether to rebuild or relocate. Looking ahead, Segal anticipates continued market movement.
“Those that realize that they’re in now a rental, they’re not crazy about it… they want to stay in Los Angeles,” says Segal. “I think that’s going to drive our spring and summer market even further.”
Despite the challenges, the long-term outlook for Los Angeles real estate remains strong, with Segal predicting that “in five years from now, price per square foot in the Palisades will easily be $2,500 a square foot.”
Carolwood Estates continues to advance its service offerings for clients. The firm recently launched a proprietary technology to harness their off-market inventory, with approximately $500 million in listings added on the first day alone.
They’ve also joined Forbes Global Partners, expanding their international reach. These strategic moves position Carolwood Estates to strengthen their standing in the ultra-luxury segment while maintaining their boutique approach.
In a market where many brokerages chase volume through agent count, Carolwood Estates has demonstrated that expertise, discretion, and selectivity yield remarkable results. Their success suggests that in luxury real estate, the firms focused on quality over quantity often command the most respect – and the highest market share.
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