CHAMPAIGN – The Devonshire Group will get out of the residential real estate business and plans to sell a majority stake in its architectural and engineering firms, Chief Executive Officer Thomas E. Harrington said Thursday.

Harrington said he and his brother, Tim, have decided to concentrate instead on their commercial real estate business, the company's original focus.

He said the decision was made for "personal reasons" – not just the downturn in the real estate market – but would not elaborate, other than to say it isn't related to illness.

Devonshire's residential division, Coldwell Banker Devonshire Realty, is one of the largest Coldwell Banker franchises in the nation, with 26 offices in central Illinois and northeast Florida. About 600 agents are affiliated with the firm.

Harrington said he expects new Coldwell Banker affiliates to assume the business now handled by Coldwell Banker Devonshire Realty.

That should happen relatively soon – "it won't be months," he said.

"The consumer should notice no change," he added. "It should be a pretty seamless situation."

Coldwell Banker Devonshire Realty's exit will likely result in "short-term layoffs" of support staff, Harrington said.

He didn't specify a number, but said it's possible many could get rehired by new Coldwell Banker franchises. It's also possible the new franchises might operate from the current offices, he said.

"That decision will get made with the new owners and the landlords," he said.

Harrington also said the Devonshire Group is negotiating with an out-of-state firm interested in acquiring a majority interest in Devonshire's architectural and engineering companies, ASD Architects and HDC Engineering.

He would not disclose the prospective buyer, but said if the deal goes through, the firm could bring "additional expertise and disciplines to our array."

That could be positive for growth, he said. Currently, HDC's services include civil, environmental, electrical and mechanical engineering.

Harrington praised Coldwell Banker, calling it "the best brand in the business." He said the commercial real estate side of the business will continue to use the Coldwell Banker Commercial brand.

He said he's also positive about Coldwell Banker's future in the local residential market, even though the ownership of the franchise "is going to be different."

Meanwhile, the managing broker for Coldwell Banker Devonshire Realty in Champaign said she hopes her team will be able to move forward as a Coldwell Banker franchise, even if it no longer bears the Devonshire Realty name.

Managing Broker Donna Rose said the Illinois operations are divided into three regions, and there's hope each region will be able to regroup as a Coldwell Banker franchise.

The Eastern region, which includes the Champaign, Urbana, Danville, Rantoul, Mahomet, Monticello and Arthur offices, has about 150 agents, Rose said.

Rose, who met with agents Wednesday, said the decision to restructure came after Harrington met with investors and was advised to stick only with commercial real estate.

Rose said "it was sad news to share" with the agents, who expressed "overwhelming support and compassion for the owners."

The agents also showed "overwhelming support for leadership and loyalty to the brand," she said.

Terry S. Prillaman Jr., president and general counsel of Associated Capital Title in Champaign – which is also part of the Devonshire Group – notified area attorneys Thursday that Associated Capital Title won't be affected by the restructuring.

"We are open, operating and continuing to do business as a full-service real estate title insurance company able to accept your residential and commercial title insurance orders," he said in an e-mail to attorneys.

Devonshire Realty was formed in 1977, originally concentrating on commercial real estate. Its residential real estate division was formed in 1982.

That division eventually expanded to the Peoria, Springfield and Decatur areas, and two years ago acquired the Coldwell Banker franchise in the Jacksonville, Fla., area.

The Devonshire Group employs 90, according to its listing in the recently published Top Employers Directory from the Champaign County Economic Development Corp.