StackSource Acquired by L.A.-Based Firm, Investor and Founder Equity Wiped Out


Commercial mortgage advisory firm StackSource has floundered, leaving shareholders without any equity payout as it merges with a real estate financing brokerage, Commercial Observer has learned.

Los Angeles-based Max Benjamin Partners entered into a merger and acquisition agreement with StackSource, which has been struggling financially after an investment offer fell through and several capital advisers jumped ship, according to Tim Milazzo, co-founder & CEO of StackSource.

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Milazzo shared the news Wednesday over an email to shareholders that was obtained by CO, and has since updated his LinkedIn profile to reflect that he is a consultant for Max Benjamin Partners.

“Despite our relentless efforts over the past several months to secure bridge funding and achieve a recovery in our transaction activity in a turbulent commercial real estate credit market, we’ve faced insurmountable challenges,” Milazzo wrote in the email. “The [merger and acquisition] deal will not be sufficient to pay out funds to holders of common equity shares, including the employee stock pool. If you are receiving this email, you have at one time earned either employee common share options, or company adviser shares, which are both part of that stock pool and will no longer hold value.

But Milazzo and others at the top such as co-founder Nathan Wall are in the same boat as shareholders as founder equity was also completely wiped, according to Milazzo’s email.

He added that “market timing, unproductive executive hires, and maintaining a cohesive culture in a remote environment” were some of the challenges faced by the firm in recent days.

Milazzo, Wall, and representatives from Max Benjamin Partners did not immediately respond to requests for comment.

In August 2022, StackSource had closed about $1 billion in financing deals in just three years, focusing on suburban office and multifamily markets nationwide. The company arranged deals such as the $60.8 million of acquisition financing for Impex Capital Group and Bridge Investment Group to buy The Harmony Apartments in Arlington, Texas, in October 2022.

StackSource also arranged the deal for GoodNeighbor Properties to secure $32.6 million in construction financing for a mixed-use property in Alexandria, Minn., in June 2022.

Mark Hallum can be reached at