South Shore real estate heavyweight Jack Conway & Co. caused a stir when it announced the location of its 42nd Massachusetts branch recently – in the North Shore town of Swampscott.

Now, the company and its competitors both say the key to Conway’s success in its new territory will lie in its ability to establish itself and attract quality agents.

Though the branch won’t officially open until later this month, the brokerage seems to have hit the ground running, with two agents and six listings on its books already, according to the new branch’s manager.

The firm will launch in the former Coldwell Banker office on Humphrey Street, closed since Coldwell’s December 2008 decision to consolidate its North Shore offices.

Tim Knowlton, who will lead the new office, said the space can accommodate up to 30 agents, and he expects to have six to eight in place by the grand opening in late May.

“[By] next year, I would say we’ll be able to double that,” said Knowlton. He says he has been in contact with an additional six experienced agents whom he expects will join the new firm in the next few weeks.

Knowlton, formerly a branch manager for GMAC in Marblehead, had most recently been an agent at Sagan Realtors in Swampscott. His departure was so abrupt that as of press time, he was still listed on Sagan’s website as an employee.

But his former boss says she’s unfazed by the prospect of a new shop in town.

“Competition is always healthy, we wish them well,” said Phyllis Sagan, founder of Sagan Realtors. Sagan said she wasn’t surprised by Knowton’s move, given that he had managed a branch in his previous position. Sagan said she felt confident that her 40-agent firm was well placed to remain the dominant agency in town, given its central location and long history in the area. She founded it in 1983.

Ripe For Expansion

The North Shore market has seen increased activity and may be ripe for more competition, said Bert Beaulieu, president of the North Short Association of Realtors.

“It’s good friendly competition in respect to [my agency] as we relate to the other agents,” said Beaulieu. “He’s already made contact with us here at the North Shore [Association] to participate…We look forward to getting good people in.”

Al Becker, director of marketing for Jack Conway, said the move in part reflects the expansionist path the firm has been on. The new location will be the Conway’s third new venture in the last six months. The diversity of communities and mix of housing inventory in and around Swampscott are similar to the company’s traditional strongholds on the South Shore and Cape Cod, Becker said.

“Depending on how it all goes here, we certainly would like to branch out throughout the North Shore,” Knowlton told Banker & Tradesman.

Conway’s other 41 locations may be concentrated on the South Shore, but Becker said the firm did not think the distance would be a significant hindrance to the new location’s development. In fact, he noted the new location in Swampscott would be closer to the firm’s corporate office in Norwell than some of the group’s existing branches.

Still, other industry professionals say the move does have its risks.

“There’s no question that companies face bigger challenges when they open offices that are not contiguous to market areas they already service and know,“ said Mark Lippolt, senior vice president of operations for Hammond Residential Real Estate. “I can’t recall a major firm taking this approach in many, many years. But if Conway is able to hire experienced agents from other existing firms early on, they will have a good chance of success.”

“Conway has done very well on the South Shore, of course, but it’s not a surprise that they would want to build on their strength and diversify a bit by opening in new markets,” he added.

Knowlton, for one, doesn’t think that will be a problem.

“Once we get out there and the brokerage community sees what a good company Jack Conway is, and all that this company has to offer them, and gets a good feel for their culture and how they work, I think the phone’s going to be ringing off the hook,” he said.