NEW YORK CITY—Marcus & Millichap marked the successful launch of its IPO Thursday by opening trading at the New York Stock Exchange, and GlobeSt.com was there. Watch the video above for an account from three of the firm’s top executives—John Kerin, president and CEO; Hessam Nadji, SVP and chief strategy officer; and Marty Louie, CFO, interviewed by Michael G. Desiato, VP of ALM’s Real Estate Media Group—on the firm’s growth, the impetus nehind its decision to go public and its plans going forward.
On Thursday, we reported that the investment services firm had begun selling stock at a public price of $12 per share under the ticker symbol MMI; here’s additional information on the IPO, based on its filing documents and road show presentation.
As defined in the road show presentation, MM has a growth strategy driven by expanding its already dominant market share in the private investor investment sales business for deals of up to $10 million. Further, the company intends to grow its specialty niches, such as hospitality, seniors housing and self-storage; increase its business in larger transactions by building on recent success with its institutional division, Institutional Property Advisors; and further grow its financing business, Marcus & Millichap Capital Corp.
Although it leads in sales of apartments and retail properties of up to $10 million, MMI’s market share in these sectors is 12.7% and 9.3%, respectively, and the firm sees significant room for growth in both asset classes. Office and industrial are also key areas of focus in growing the company’s core business.
The company sees its primary focus—private investors and deals of up to $10 million—as a major advantage, since this segment accounts for 80%-plus of commercial property sales in the US and is less volatile than bigger-ticket price segments. At the same time, MM is expanding its presence in specialty niches through national and regional directors in charge of supporting agents in these specialties as well as hiring additional professionals.
The initiatives have borne fruit, including a 300% increase in 2012 in large, institutional apartment sales since the implementation of MM’s IPA division in 2010. MMCC will be expanded by adding loan originators in additional offices and expanding existing financing teams in major metro areas, according to the IPO filing. In late September, GlobeSt.com broke the news that the company had filed for an IPO.