Marcus & Millichap Capital Corporation Enters Strategic Alliance with M&T Realty Capital Corporation
October 07 2021 - 5:14PM
Business Wire
Enhances client services and access to
multifamily agency financing with no additional costs or fees to
clients
Marcus & Millichap (NYSE: MMI), a leading commercial real
estate brokerage firm specializing in investment sales, financing,
research and advisory services, announced today that its financing
subsidiary, Marcus & Millichap Capital Corporation (MMCC) has
entered into a strategic alliance with M&T Realty Capital
Corporation (M&T Realty Capital). The strategic alliance will
enable MMCC to provide clients with increased access to M&T
Realty Capital’s affordable and conventional multifamily agency
financing through a highly streamlined process with dedicated
resources. M&T Realty Capital is a Fannie Mae DUS lender and an
approved Freddie Mac multifamily lender for Freddie Mac’s
Conventional and Targeted Affordable Housing loans.
As part of MMCC’s ongoing expansion, the alliance includes a
preferred stock investment in M&T Realty Capital and the
ability for MMCC to indemnify M&T Realty Capital for 50% of the
credit risk losses for certain loans originated by MMCC through
M&T Realty Capital’s Fannie Mae DUS platform. The strategic
alliance will enable MMCC originators to access M&T Realty
Capital’s streamlined underwriting and efficient transaction
execution in this critical capital markets segment. Under the
agreement, MMCC originators will continue to have the ability to
clear the market on behalf of each client. Additionally, they will
have access to M&T Realty Capital’s dedicated tools, resources,
and expansive lending capacity, which are expected to significantly
grow agency market share for MMCC’s sourcing business and M&T
Realty Capital’s loan origination business.
In January 2021, MMCC named Evan Denner as Executive Vice
President and Head of Business. Denner was instrumental in
co-designing the partnership with Michael Berman, President and CEO
of M&T Realty Capital, along with Beekman Advisors, who advised
MMCC on the alliance. To further build MMCC’s ability to expand its
clients’ access to agency financing, Paul Lewis, who spent nearly
20 years at Fannie Mae, joined in January. Lewis is a Senior Vice
President and Director of Agency Programs.
Hessam Nadji, President and CEO of Marcus & Millichap
stated: “MMCC is well positioned to work seamlessly with M&T
Realty Capital to expand agency financing for our multifamily
clients with better tools and resources for our originators. Marcus
& Millichap is the leader in multifamily brokerage and will
better integrate agency financing with our client value
proposition. The investment in this strategic alliance and
willingness to indemnify M&T RCC for credit risk losses is
driven by the agencies’ historically strong multifamily loan
performance and very low losses, coupled with significant upside in
growing our internal financing capture rate and M&T’s unique
ability to enhance our client services.”
MMCC closed $2.73 billion of multifamily financing in the first
half of 2021 and with this alliance will become M&T Realty
Capital’s largest origination partner by loan volume. Marcus &
Millichap and its Institutional Property Advisors (IPA) division
closed $12.97 billion of multifamily sales in the first half of
2021. “Marcus & Millichap and IPA have a stellar reputation in
the industry and specifically in the multifamily real estate
segment,” stated Berman. “We are proud to have Marcus &
Millichap Capital Corporation as our strategic alliance partner.
The synergies across our brands will enable us to provide
substantial opportunities for clients.”
The alliance will allow both firms to provide clients with the
most competitive capital markets solutions secured by multifamily
properties throughout the United States. MMCC originators will work
directly with M&T Realty Capital’s origination and credit teams
creating an efficient, transparent, and ultra-competitive process
for clients. Lewis and M&T Realty Capital’s Mark Gould will
co-manage the venture.
“Marcus & Millichap Capital Corporation is firmly committed
to this partnership,” said Denner. “We are a market leader
providing multifamily capital markets solutions and this alliance
provides us with another tool to continue to best serve our
clients.”
About Marcus & Millichap (NYSE: MMI)
With over 2,000 investment sales and financing professionals
located throughout the United States and Canada, Marcus &
Millichap is a leading specialist in commercial real estate
investment sales, financing, research, and advisory services.
Founded in 1971, the firm closed 8,954 transactions in 2020 with a
value of approximately $43 billion. Marcus & Millichap has
perfected a powerful system for marketing properties that combines
investment specialization, local market expertise, the industry’s
most comprehensive research, state-of-the-art technology, and
relationships with the largest pool of qualified investors. To
learn more, please visit: www.MarcusMillichap.com.
About Marcus & Millichap Capital Corporation
Marcus & Millichap Capital Corporation (MMCC) is a
subsidiary of Marcus & Millichap (NYSE: MMI), a leading
commercial real estate investment services firm with offices
throughout the United States and Canada. MMCC provides commercial
real estate capital markets financing solutions, including debt,
mezzanine financing, preferred and joint venture equity, sponsor
equity, loan sales and consultative and due diligence services. In
2020, MMCC closed 1,943 transactions totaling $7.67 billion. To
learn more, please visit: marcusmillichap.com/financing
M&T Realty Capital Corporation® (www.mtrcc.com) is a
wholly-owned subsidiary of M&T Bank Corporation—one of the 20
largest US-headquartered commercial bank holding companies. As a
full-service mortgage banking company, it specializes in providing
competitive financing nationwide for commercial real estate. It is
a fully accredited Fannie Mae DUS® lender, a Freddie Mac Optigo®
lender, an approved FHA/HUD MAP and LEAN lender, and offers life
insurance company and CMBS financing through correspondent
relationships. In addition to its M&T Bank offices, MTRCC is
also closely aligned with M&T commercial banking offices in
Florida, Oregon, and Washington.
Equal Housing Lender. NMLS #1024366. M&T Realty Capital
Corporation is a wholly owned subsidiary of M&T Bank, Member
FDIC. “DUS®” is a registered trademark of Fannie Mae. “Optigo®” is
a registered trademark of Freddie Mac. All loans and all terms
referenced herein are subject to receipt of a complete application,
credit approval, and other conditions.
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version on businesswire.com: https://www.businesswire.com/news/home/20211007006037/en/
Media Contacts: Gina Relva Marcus & Millichap
Gina.Relva@marcusmillichap.com 510-999-1284
David Samberg M&T Bank dsamberg@mtb.com 201-368-4515
Investor Relations: Brad Cohen ICR Inc
Brad.Cohen@icrinc.com
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