Marcus & Millichap Closes On Pinnacle Financial Group

CLEVELAND, OH–Marcus & Millichap has closed on its previously-announced acquisition of the locally-based Pinnacle Financial Group. Formed in 1990, Pinnacle is one of the largest independently owned financing companies in the Midwest. With the acquisition complete, Pinnacle’s 17-person team will be incorporated into the mortgage brokerage operations of Marcus & Millichap Capital Corp. in that region.

Pinnacle will fill a service gap in key areas of the Midwest, President and CEO Hessam Nadji said in a prepared statement when the deal was first announced in May. Pinnacle provides bridge loans, mezzanine financing and construction loans and it has a sizable mortgage servicing portfolio as well as relationships with life insurance companies and CMBS lenders, Nadji also said.

For example, the earlier this year the company announced that it had added two new life company relationships: Farm Bureau Life and American Equity Investment Life, both of which are based out of Des Moines, Iowa and have programs that serve the Northeast Ohio markets. As another example, the company reported that it closed a $42.6 million CMBS for a 315,000 square foot power center in Boardman, Ohio, called The Shops at Boardman Park. It was a 10-year, 30-year amortization structure that included 2 years of interest only payments and despite recent pullback in financing terms, it had a loan-to-value of 75%, Pinnacle said at the time.

Many M&A

The acquisition is one of a number of deals that have been closing in the broker space. Last week Newmark Group announced it is acquiring RKF Retail Holdings. Also, Colliers International has an agreement to take  a 75% stake in Harrison Street Real Estate Capital for a total of $550 million. Colliers also recently announced it has entered into an agreement to acquire Engel & Völkers Main -Taunus GmbH in Frankfurt, Germany.