Brokerage giant Marcus & Millichap is acquiring New York-based competitor Mission Capital Advisors.
Acquisition talks began last year and the transaction was set to close in the first quarter before the coronavirus pandemic hit, Commercial Observer reported.
Sources told the outlet that the merger was motivated by potential to combine the firms’ loan origination and loan sales businesses, and the opportunity for Mission Capital to leverage Marcus & Millichap’s knowledge of local banks.
Mission Capital principal David Tobin will continue to run the firm’s loan sale business from New York after the merger. The firm also has offices in Jupiter, Florida and Los Angeles.
Calabasas, California-based Marcus & Millichap closed 9,726 transactions nationally in 2019, with a sales volume of about $50 billion. In New York City, the firm closed 147 investment sales deals totalling about $1.39 billion in 2019, the fifth-highest dollar volume and the highest deal count in The Real Deal’s latest investment sales ranking.
“Given the uncertainty regarding [coronavirus] recovery timeframes, we are executing necessary expense reductions to keep [the firm] financially strong,” Marcus & Millichap president and CEO Hessam Nadji wrote in the firm’s first quarter SEC filings.
“We are particularly supported by a strong balance sheet and liquidity, not only to execute our business but to capitalize on potential acquisition opportunities.” [CO] — Kevin Sun