Marcus & Millichap has inked a deal to acquire Mission Capital Advisors, a New York-based debt and equity brokerage.
The acquisition has been in the works since 2019, but its finalization was delayed by the outbreak of the coronavirus pandemic, Commercial Observer reports. As recently as this summer, the fate of the deal was uncertain because a number of long-standing finance professionals had left Mission.
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Neither buyer nor seller has disclosed the purchase price. Mission principal David Tobin will continue to head the company's loan sales platform, and about 40 other Mission employees will join Marcus & Millichap in New York, Florida, Texas and California.
“Mission’s loan sales and consulting services will expand our lender relationships and client service offerings," Marcus & Millichap President and CEO Hessam Nadji said in a statement, as reported by Connect Media.
Mission's experience securing financing for larger and more complex transactions, and its equity advisory capabilities, are complementary to Marcus & Millichap Capital Corp.’s core mortgage brokerage business, Nadji also said.
CRE lending is down from pre-pandemic levels, but capital is still available and looking for deals.
"There’s still financing available, particularly for the right deals, but it’s definitely a more challenging environment,” Mission Capital Managing Director Steven Buchwald told The Wall Street Journal.
The Mission deal comes when further consolidation among commercial real estate giants may be in the offing. Earlier this year, Marcus & Millichap acquired Dallas-based Metropolitan Capital Advisors, which specializes in locating debt, equity and financing options for CRE developers, investors and owners.
Recently, Cushman & Wakefield reportedly made an unsuccessful offer for Newmark Group. Also, commercial real estate insiders in multiple markets told Bisnow that they have also heard talk about Cushman & Wakefield and JLL engaging in merger discussions, though that deal hasn't been confirmed.
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