Marcus & Millichap Inc Stock Price, News & Analysis

Marcus & Millichap (NYSE: MMI) has successfully sold two multifamily portfolios in Essex County, New Jersey, for a total of $92.5 million. The sale includes 24 properties comprising 702 units, making it one of the largest multifamily transactions in New Jersey in 2020. Represented by Richard Gatto and Fahri Ozturk, the seller was a partnership of ERCT Capital Group, MAVeCap, and Metropolitan America. The buyer, Spaxel LLC, was represented by Eric Anton and Chris Warner. The deal showcases strong market interest, with 12 qualified offers received.

Marcus & Millichap (MMI) announced the acquisition of Houston-based LMI Capital, a firm specializing in commercial real estate financing. Founded in 1999, LMI has arranged over $1.2 billion in transactions in the past three years and focuses on securing capital for various property types. This acquisition enhances Marcus & Millichap Capital Corporation's (MMCC) workforce, adding 10 experienced professionals from LMI, thus expanding its capabilities in capital markets solutions. MMI's CEO highlighted the cultural fit and strong client relationships as key factors for this strategic growth.

Marcus & Millichap (NYSE: MMI) has completed the sale of a two-property multifamily portfolio in Tucson, Arizona, comprising Equestrian and Ridgeline. Equestrian, a 288-unit complex, sold for $47.7 million (~$165,625/unit), while Ridgeline, a 272-unit property, fetched $42.5 million (~$156,250/unit). Both properties were noted for their potential revenue enhancement through renovation programs. With ongoing job growth in sectors like aerospace and defense, Tucson’s economic landscape appears favorable for real estate investments.

Marcus & Millichap (NYSE: MMI) has successfully sold the Riata apartment complex in Chandler, Arizona, for $91 million, equating to $303,333 per unit. The transaction involved a private family trust in a 1031 exchange, following the sale of another property. Completed in 2020, Riata features 300 units with high-end amenities and is strategically located near major employers and retail centers. The rapid lease-up amid the pandemic highlights its desirability.

Marcus & Millichap (NYSE: MMI) announced the sale of Eagle Crest, a 408-unit multifamily property in Glendale, Arizona, for $55 million, averaging $134,804 per unit. The sale reflects ongoing demand in the Greater Phoenix area, which saw over 77,000 new residents in 2019, leading the nation in net in-migration. The property benefits from its location near key amenities and a strong local economy, bolstered by expanding companies in the region. The affluent Arrowhead community surrounding Eagle Crest further enhances its market value, ensuring protection against future multifamily developments.

Marcus & Millichap (MMI) reported a 20% decline in third-quarter 2020 revenues, totaling $158.6 million, impacted by the COVID-19 pandemic. Net income was $6.0 million, or $0.15 per share, compared to $19.3 million in the same quarter of 2019. Adjusted EBITDA also fell to $12.2 million. Despite these challenges, MMI saw a sequential increase in brokerage transactions, up 42% from the previous quarter. The firm acquired Mission Capital to enhance its financing capabilities, signaling a commitment to growth amid market disruptions.

Marcus & Millichap, Inc. (NYSE: MMI) announced it will release its financial results for Q3 2020 on November 5, 2020, after market close. A conference call will follow at 5:00 PM ET, hosted by CEO Hessam Nadji and CFO Steve DeGennaro. Investors can access a live webcast through the company's website, with a replay available from 8:00 PM ET on November 5 until November 19. As of December 31, 2019, Marcus & Millichap had 2,021 professionals and closed 9,726 transactions with a sales volume of approximately $50 billion in 2019.

Marcus & Millichap (NYSE: MMI) announced the sale of Onnix, a 659-unit multifamily property in Tempe, AZ, for $117.5 million or $178,300 per unit. The property is well-located near key employment corridors and educational institutions, enhancing its economic potential. The sale was facilitated by IPA executives, representing both the seller, Bridge Investment Group, and the buyer, Western Wealth Capital. The property features diverse unit options and numerous amenities, indicating strong market demand.

Marcus & Millichap (MMI) announced a definitive agreement to acquire Mission Capital, a capital markets advisor, expected to close in Q4. Founded in 2002, Mission Capital specializes in loan sales, consulting, and structured finance across various property types. This acquisition will add 40 capital markets professionals to MMI and enhance its financing division, Marcus & Millichap Capital Corporation (MMCC). MMI aims to broaden its capital markets capabilities, improve client offerings, and foster collaboration within its financing and sales teams.