Marcus & Millichap, Inc. (NYSE:MMI) Q2 2023 Earnings Call Transcript

Hessam Nadji: Sure Blaine. The overall market downturn has, of course, limited the volume that we would have achieved with M&T in agency lending in a normal market environment, for sure. But having said that, because the agencies have been active in the market, and because we were able to leverage our partnership with M&T to acquire or bring on board the Eisendrath Financial Group, which was the number one industry leader in agency production for major apartments about year and a half ago, we have done more business with M&T in the last six months that we have in the last year and a half or almost two years now since the partnership was put together. And we have a very healthy pipeline that would also qualify as our top performing subsector within our financing division, because the agencies are still active and because we do have the partnership with M&T and the origination capacity that the Eisendrath Group has brought to the firm.

They’re also integrating very well with our IPA multifamily sales teams in a very targeted effort by management to create a streamlined way for them to really partner and bring a combined value proposition to our clients, bring in the investment sales research capabilities that we’ve always had, but now really expanding that to include capital markets. And that includes a lot of advice and consulting as well as execution of actual financings because a lot of our mid-market and larger clients are frankly trying to come up with solutions to maturing loans and bridge the current financing environment to get through the next couple of years and position themselves for refinancing down the road when interest rates do come back down. So, having that capability actually is very beneficial at a strategic level because it puts us in front of the clients that we normally wouldn’t have a reason to be in touch with.

Blaine Heck: Okay, great. Thanks so much for all the time.

Hessam Nadji: Thank you, Blaine.

Operator: There are no further questions in the queue. I’d like to hand it back to management for closing remarks.

Hessam Nadji: Thank you, operator, and thank you, everybody, for joining our call. We look forward to seeing many of you on the road and look forward to our next earnings call for the third quarter. The call is adjourned.

Operator: Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.