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Marcus & Millichap Capital Corp., M&T Realty Capital Enter Strategic Alliance
Marcus & Millichap’s financing subsidiary, Marcus & Millichap Capital Corporation (MMCC) has entered into a strategic alliance with M&T Realty Capital Corporation. The strategic alliance will position MMCC as M&T Realty Capital’s largest origination partner by loan volume and will enable MMCC to provide clients with increased access to M&T Realty Capital’s affordable and conventional multifamily agency financing.
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.
Hessam Nadji, president and CEO of Marcus & Millichap, said: “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,” Nadji continued.
- ◦Financing
