Deal will expand the firms’ multifamily agency financing and resources for originators
Marcus & Millichap has announced that its financing subsidiary, Marcus & Millichap Capital Corporation (MMCC), has partnered with M&T Realty Capital to expand its clients’ access to multifamily agency financing.
In a statement, the commercial real estate brokerage said that the strategic alliance would allow both MMCC and M&T Realty to provide clients with affordable and conventional multifamily agency loan offerings. 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.
“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,” said Hessam Nadji, president and CEO of Marcus & Millichap. “Marcus & Millichap is the leader in multifamily brokerage and will better integrate agency financing with our client value proposition.”
Under the agreement, MMCC will invest in M&T Realty Capital’s preferred stock and will be able 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. MMCC originators will also have the ability to clear the market on behalf of each client.
“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,” Nadji said.
Paul Lewis, senior vice president and director of agency programs at MMCC, and M&T Realty Capital’s national production manager Mark Gould will co-manage the venture.
“Marcus & Millichap and IPA have a stellar reputation in the industry and specifically in the multifamily real estate segment,” said Michael Berman, president and CEO of M&T Realty Capital. “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.”
“Marcus & Millichap Capital Corporation is firmly committed to this partnership,” said Evan Denner, executive vice president and head of business at MMCC. “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.”