Marcus & Millichap Acquiring Mission Capital Advisors: Sources
Marcus & Millichap is acquiring Mission Capital Advisors, multiple sources told Commercial Observer.
Talks began last year, sources said, with the acquisition’s closing likely being scheduled for the first quarter before COVID-19 turned the world upside down. Now, the transaction is a “done deal,” sources said.
Brokerage behemoth Marcus & Millichap has a national footprint, closing 9,726 transactions in 2019, with a sales volume of approximately $50 billion.
New York-headquartered Mission Capital offers debt and equity placement services as well as loan sale services, with additional offices in Jupiter, Fla. and Los Angeles.
Its loan sale platform encompasses both performing and non-performing debt portfolios as well as real estate sales. As part of the merger, David Tobin, principal of Mission Capital, will continue to run the firm’s loan sale business out of New York, sources said.
Sources said that the impetus behind the merger was that the two firms saw synergies between their loan origination and loan sales businesses, with Mission seeking to tap into Marcus & Millichap’s local bank knowledge.
“Given the uncertainty regarding [COVID-19] recovery timeframes, we are executing necessary expense reductions to keep [the firm] financially strong. We are confident that our nearly 50-year history to persevere through a multitude of historical market disruptions will serve us well as we navigate the current situation,” Marcus & Millichap president and CEO Hessam Nadji said in commentary included 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.”
Over the last 18 months, Mission has seen a couple of its longtime debt and equity professionals depart the company. Former managing director Ari Hirt left last summer to join debt and equity brokerage powerhouses Aaron Appel, Keith Kurland and Jonathan and Adam Schwartz at their newly-formed operation, AKS Capital Partners. He then joined them in their move to real estate financier Walker & Dunlop in February, following AKS’ sale to CEO Willy Walker’s firm.
Mission also saw the departure of principal Stephen Emery in June 2019, who had been with the company for over 17 years. Emery currently serves as a partner and board member at online commercial real estate investing platform EquityMultiple as well as at Supergoop!, a skincare and sunscreen brand.
And on the loan sale side, two of its top professionals, Will Sledge —who’d been with the firm for 17 years — and Kyle Kaminski left Mission Capital in May for new roles at JLL, as reported by Commercial Real Estate Direct. Luis Vergara, who focused on residential loans sales, left in October 2019 for a role at HouseCanary.
Officials at Mission Capital didn’t immediately return requests for comment. A representative for Marcus & Millichap declined to comment.