Marcus & Millichap Capital Corporation closed more than $160 million in financing for six shopping centers across the United States that comprise more than 1.4 million square feet. Five of the shopping centers were located either in the Midwest or Texas.

Todd McNeill and Sunny Sajnani, senior managing directors in Capital Markets at MMCC’s Dallas Uptown office, arranged the financing for the six shopping centers by working with various financial institutions to provide the funding, including JP Morgan, Morgan Stanley, Goldman Sachs and Happy State Bank.

“Grocery-anchored centers are essential. That’s been proven even before the pandemic and well after,” said Nick Hodge, chief executive officer of Essential Growth Acquisition Properties. Hodge was the former head of corporate real estate for Kroger Cos. and started Essential with a focus of acquired high performing grocery anchored centers across the country.

Transactions details

Newport Pavilion – Located in Newport, Kentucky, the 336,900-square-foot shopping center has more than 35 retailers, including popular national retailers Target, TJ Maxx, Dick’s Sporting Goods, Ulta, PetSmart and Chick-fil-A. The site was acquired by Dallas-based Rainier Companies, a leading commercial real estate investment firm. This property received a 10-year fixed-rate loan with a 3 percent interest rate.

Wolflin Village –The 159,485-square-foot retail center anchored by Office Depot, Sprint, Edward Jones, and Talbot’s is located in located in Amarillo, Texas. Morris Capital Partners owns the property. This retail center received a 10-year fixed-rate loan with a 3.9 percent interest rate.

Midlothian Towne Crossing – The 53-acre development is located in Midlothian, Texas, and is anchored by brands such as a 123,000-square-foot Kroger, Ross, Burke’s Outlet, Jo-Ann’s and Ulta. The property is owned by Weber & Co., a private development firm. This development received a 10-year fixed-rate loan with a 3.5 percent interest rate.

Epic West Towne Crossing – Located in Grand Prairie, Texas, the 276,817-square-foot shopping center is shadow anchored by IKEA and anchored by, Burlington, Michaels and Petco. The site is owned by Weber & Co, a private development firm. This brick-and-mortar site received a 10-year fixed-rate loan with a 3.25 percent interest rate.

Shoppes of Mason – Located in Mason, Ohio, the 81,000-square-foot shopping center anchored by Kroger, UPS, T-Mobile and Avis. The shopping center was acquired by Essential Growth Acquisition Properties, a Cincinnati-based investment firm focused on grocery anchored shopping centers. This property received a 10-year fixed-rate loan with a 3.8 percent interest rate.

Lake Drive Plaza – Located in Vinton, Virginia, this center is comprised of a 163,000-square-foot shopping center anchored by Kroger, GNC, H&R Block and Tractor Supply. The shopping center was acquired by Essential Growth Acquisition Properties, a Cincinnati-based investment firm focused on grocery anchored shopping centers. This property received a 10-year fixed-rate loan with a 3.25 percent interest rate.

CALABASAS, Calif. Oct 8, 2021 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today that its financing subsidiary, Marcus & Millichap Capital Corporation (MMCC) has entered into a strategic alliance with M&T Realty Capital Corporation (M&T Realty Capital). The strategic alliance will enable MMCC to provide clients with increased access to M&T Realty Capital’s affordable and conventional multifamily agency financing through a highly streamlined process with dedicated resources. 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.

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. The strategic alliance will enable MMCC originators to access M&T Realty Capital’s streamlined underwriting and efficient transaction execution in this critical capital markets segment. Under the agreement, MMCC originators will continue to have the ability to clear the market on behalf of each client. Additionally, they will have access to M&T Realty Capital’s dedicated tools, resources, and expansive lending capacity, which are expected to significantly grow agency market share for MMCC’s sourcing business and M&T Realty Capital’s loan origination business.

In January 2021, MMCC named Evan Denner as Executive Vice President and Head of Business. Denner was instrumental in co-designing the partnership with Michael Berman, President and CEO of M&T Realty Capital, along with Beekman Advisors, who advised MMCC on the alliance. To further build MMCC’s ability to expand its clients’ access to agency financing, Paul Lewis, who spent nearly 20 years at Fannie Mae, joined in January. Lewis is a Senior Vice President and Director of Agency Programs.

Hessam Nadji, President and CEO of Marcus & Millichap stated: “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.”

MMCC closed $2.73 billion of multifamily financing in the first half of 2021 and with this alliance will become M&T Realty Capital’s largest origination partner by loan volume. Marcus & Millichap and its Institutional Property Advisors (IPA) division closed $12.97 billion of multifamily sales in the first half of 2021. “Marcus & Millichap and IPA have a stellar reputation in the industry and specifically in the multifamily real estate segment,” stated Berman. “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.”

The alliance will allow both firms to provide clients with the most competitive capital markets solutions secured by multifamily properties throughout the United States. MMCC originators will work directly with M&T Realty Capital’s origination and credit teams creating an efficient, transparent, and ultra-competitive process for clients. Lewis and M&T Realty Capital’s Mark Gould will co-manage the venture.

“Marcus & Millichap Capital Corporation is firmly committed to this partnership,” said Denner. “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.”

About Marcus & Millichap (NYSE: MMI)

With over 2,000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed 8,954 transactions in 2020 with a value of approximately $43 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit www.MarcusMillichap.com.

TULSA, OKLAHOMA – Manhattan Construction Company, a top-performing national construction services firm, today announced that it has been named an Accredited Quality Contractor (AQC) by Associated Builders and Contractors, the 18th year it has earned the credential for its commitment to corporate responsibility. Only 229 of the nation’s elite merit shop construction contractors earned the credential in 2020.

“As a fifth-generation, family-owned company, there is an authentic care and concern for those who work for and with Manhattan,” said Manhattan Construction Company President John Reyhan. “Our AQC designation is a meaningful affirmation of our wide-ranging quality, safety, education, health, and wellness programs that nourish the lasting success of our client relationships, team members, project partners, and trade partners.” ABC’s AQC program provides recognition to world-class construction firms that have documented their commitment in five areas:

• Quality
• Safety performance
• Talent management
• Craft and management education
• Community relations, inclusion, diversity, and equity

“Accredited Quality Contractors are the types of companies I want to work for and do business with because of the priority placed on world-class safety, culture, workforce development, innovation, diversity and quality,” said 2021 ABC National Chair of the Board of Directors Steve Klessig, vice
president of architecture and engineering, Keller Inc., Kaukauna, Wisconsin. “Congratulations to the leadership and employees of Manhattan Construction Company for your daily commitment to corporate and community service; you exemplify the merit shop philosophy and what’s best about ABC membership.”

In earning the AQC credential, each member company commits to world-class safety by achieving Gold, Platinum or Diamond level in ABC’s STEP Safety Management System. Founded more than three decades ago, STEP dramatically improves safety performance among construction industry participants, with top performers achieving incident rates more than eight times safer than the U.S. Bureau of Labor Statistics industry average. AQC members also take the following pledge:

As an Accredited Quality Contractor, our company is committed to providing our clients with the highest quality construction services, and we care deeply about our employees and the communities in which we build. We are proud to be part of the construction industry and are dedicated to the principles of free enterprise. We commit ourselves to serve our communities and provide our employees with the skills they need to work safely and productively in order to meet the needs of our clients. AQC is recognized by Construction Users Roundtable, an organization founded by leading construction project owners.

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About ABC
Associated Builders and Contractors is a national construction industry trade association established in 1950 that represents more than 21,000 members. Founded on the merit shop philosophy, ABC and its 69 chapters help members develop people, win work and deliver that work safely, ethically and profitably for the betterment of the communities in which ABC and its members work. Visit us at abc.org.

About Manhattan Construction Company
Founded in 1896, Manhattan Construction Company is a fifth-generation family-owned company that provides preconstruction, construction management, program management, general building, and design-build services throughout the United States, Mexico, Central America, and the Caribbean. Manhattan’s portfolio of work includes mission-critical, sports, healthcare, government, education, laboratory, science & technology, aviation, transportation, industrial, convention, casino, and hospitality
facilities. Manhattan is an 18-time Associated Builders and Contractors (ABC) Accredited Quality Contractor (AQC), an ABC 2019, 2020, and 2021 Top Performing Contractor, a nine-time STEP Diamond Safety Award Winner, and a 2017 and 2021 National Safety Pinnacle Award winner. www.manhattanconstruction.com