{"id":1004084032,"date":"2013-09-24T12:50:34","date_gmt":"2013-09-24T20:50:34","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004084032"},"modified":"2022-12-02T23:26:30","modified_gmt":"2022-12-03T07:26:30","slug":"marcus-millichap-files-for-ipo","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/marcus-millichap-files-for-ipo\/","title":{"rendered":"Marcus & Millichap Files for IPO"},"content":{"rendered":"

\u00a0<\/i>By Gail Kalinoski, Contributing Editor<\/i><\/p>\n

\"Marcus<\/a>

Marcus & Millichap CEO & President John Kerin<\/p><\/div>\n

Citing improvement in the commercial real estate industry, Marcus & Millichap, Inc. has filed plans for an initial public offering as much as $103.5 million with the U.S. Securities and Exchange Commission.<\/p>\n

The company plans to list on the NYSE under the symbol MMI. The SEC filing said the number of shares or price range had not been determined. It also plans to spin off Marcus & Millichap Real Estate Investment Services as a wholly owned subsidiary of Marcus & Millichap, Inc., once the offering is completed. The filing notes that founders George Marcus and William Millichap would serve as co-chairmen of the Board of Directors and retain their positions as directors of Marcus & Millichap Co.<\/p>\n

A spokesperson for CEO and President John Kerin declined comment today because the firm is in a quiet period due to the filing.<\/p>\n

A leading national brokerage firm founded in 1971 and specializing in commercial real estate investment sales, financing, research and advisory services, the Calabasas, Calif.-based company said it intends to use net proceeds for general corporate purposes. The firm noted in its SEC filing that could include \u201ccapital expenditures and working capital to expand our markets and services and potential acquisition of real estate businesses or companies.\u201d It stated there are no current agreements on any transactions.<\/p>\n

But that might be what they have in mind, according to Dan Fasulo, managing director at Real Capital Analytics.<\/p>\n

\u201cThis is an opportune time to bring a commercial brokerage public,\u201d he told Commercial Property Executive<\/i>. \u201cSome of the other publicly listed brokerage companies on the corporate and residential side have seen significant increase in their stock prices over the last couple of years. It makes transactions like this more attractive.\u201d<\/p>\n

\u201cThey have competitors that are expanding and investing in their platforms and I\u2019m sure they need capital to do the same,\u201d Fasulo added. \u201cDon\u2019t underestimate how much staying competitive is a driver of something like this.\u201d<\/p>\n

He said Marcus & Millichap may look to buy \u201csmaller infill companies.\u201d<\/p>\n

\u201cI think they will look to invest in their strengths and fill in the gaps on their coverage,\u201d Fasulo said.<\/p>\n

\n

Jahn Brodwin, senior managing director in the Real Estate Solutions practice at FTI Consulting in New York City, said the biggest factor in the firm\u2019s decision to go public now could be the consolidation trend occurring in the industry, particularly for real estate advisory firms like Marcus & Millichap.<\/p>\n

\u201cIncreasingly in the marketplace you need to be one of two things \u2013 you need to be very large or you need to be a boutique, highly specialized in a particular service or geography,\u201d he said. \u201cThis will give them the ability to do a number of things. It will give them new currency, namely their stock, to incentivize employees as well as new currency they can use to be acquisitive, to acquire other companies to grow their platform.\u201d<\/p>\n

Brodwin said if Marcus & Millichap was looking to bring on new teams or acquire a specialty or boutique firm, being able to offer stock is another incentive.<\/p>\n

\u201cIt gives them added firepower,\u201d he told\u00a0CPE.<\/i><\/p>\n<\/div>\n

In its SEC filing, Marcus & Millichap noted that the commercial real estate market has been coming back from the downturn of 2007. It said that CRE property sales priced at $1 million or more reached more than $340 billion, about 37,000 transactions, in 2012, a 41 percent increase in dollar volume and 32 percent increase in transaction volume over 2011.<\/p>\n

\u201cThis cyclical upturn has been, and we believe it will continue to be, primarily driven by attractive yields, improving property fundamentals and the availability and cost of financing,\u201d Marcus & Millichap said in the SEC filing.<\/p>\n

\u201cProperty fundamentals have improved since 2009, with multi-family properties in particular experiencing a strong recovery. We expect further increases in occupancy and rental rates in all four primary commercial real estate sectors of multifamily, retail, office and industrial properties,\u201d the filing stated.<\/p>\n

Those comments were echoed by Fasulo.<\/p>\n

\u201cTransaction activity is up significantly from a low point, especially in multi-family, which is their historical strong spot,\u201d he told CPE<\/i>.<\/p>\n

Marcus & Millichap said it closed 6,149 transactions with a total volume of approximately $22 billion in 2012, the highest of any commercial real estate brokerage firm. It added that based on the number of transactions, it had been the top CRE investment broker in the United States over the past 10 years. The firm has more than 1,100 investment sales and financing professionals in 73 offices. Marcus & Millichap said it focuses primarily on the private client segment, consisting of transactions under $10 million.<\/p>\n

Citigroup Global Markets Inc. and Goldman, Sachs & co. will serve as joint book runners for the proposed offering. JMP Group Inc. and William Blair & Col will act as co-managers.<\/p>\n","protected":false},"excerpt":{"rendered":"

Citing improvement in the commercial real estate industry, Marcus & Millichap has filed plans for an initial public offering as much as $103.5 million with the U.S. Securities and Exchange Commission.<\/p>\n","protected":false},"author":1068,"featured_media":1004084036,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21742],"tags":[],"class_list":["post-1004084032","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest"],"acf":[],"yoast_head":"\nMarcus & Millichap Files for IPO - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/marcus-millichap-files-for-ipo\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Marcus & Millichap Files for IPO\" \/>\n<meta property=\"og:description\" content=\"Citing improvement in the commercial real estate industry, Marcus & Millichap has filed plans for an initial public offering as much as $103.5 million with the U.S. Securities and Exchange Commission.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/marcus-millichap-files-for-ipo\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2013-09-24T20:50:34+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-03T07:26:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2013\/09\/Kerin_John.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"409\" \/>\n\t<meta property=\"og:image:height\" content=\"336\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gail Kalinoski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/marcus-millichap-files-for-ipo\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/marcus-millichap-files-for-ipo\\\/\"},\"author\":{\"name\":\"Gail Kalinoski\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/fc5b5df1393e5023d2417bd48c2fda57\"},\"headline\":\"Marcus & Millichap Files for IPO\",\"datePublished\":\"2013-09-24T20:50:34+00:00\",\"dateModified\":\"2022-12-03T07:26:30+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/marcus-millichap-files-for-ipo\\\/\"},\"wordCount\":812,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/marcus-millichap-files-for-ipo\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2013\\\/09\\\/Kerin_John.jpg\",\"articleSection\":[\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/marcus-millichap-files-for-ipo\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/marcus-millichap-files-for-ipo\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/marcus-millichap-files-for-ipo\\\/\",\"name\":\"Marcus & Millichap Files for IPO - 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