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Marcus & Millichap Acquires Houston’s LMI Capital


Marcus & Millichap has acquired LMI Capital for an undisclosed amount and will bring the firm into its financing division, Marcus & Millichap Capital Corp.

LMI Capital arranges debt and equity capital across the spectrum of property types. The Houston-based firm was founded in 1999 and serves commercial real estate owners, developers and investors across the Southwest. 

“As part of our ongoing focus on expanding Marcus & Millichap Capital Corporation with accomplished professionals, we welcome five originators and an additional five key support team members to our growing financing roster,” Marcus & Millichap CEO Hessam Nadji said in a statement.

The 10-person LMI team has completed more than $1.2B in transactions over the last three years, and the firm has a strong background in providing capital markets solutions through Fannie Mae and Freddie Mac, according to the press release.

Periods of economic disruption often are accompanied by an uptick in consolidation activity. The coronavirus pandemic has created an environment where larger CRE firms may be actively looking to acquire smaller firms to expand into areas where they have not historically operated or where they want to strengthen their footprint.

In February, Starlight Investments and KingSett Capital purchased Northview Apartment REIT, and Simon Property Group began looking into acquiring Taubman Centers during the same month. That transaction came to fruition in November for about $2.8B. In addition, Greystar bought Alliance Residential Co.'s apartment management business in June.

Proptech industry players were already discussing the potential for a big M&A year in May, and data center-related M&A activity has surpassed $30B in 2020, far outstripping the previous record set in 2017, according to Synergy Research Group.