CALABASAS, CALIF. — Marcus & Millichap Inc. (M&M) has filed a registration statement with the U.S. Securities and Exchange Commission for a proposed initial public offering of common stock as the commercial real estate brokerage looks to expand.
The company has not determined the number of shares and the price range for the offering. M&M is looking to raise up to $103.5 million in its initial public offering.
The Calabasas, Calif.-based brokerage firm intends to use the proceeds of the offering for general corporate purposes, including buying real estate businesses or companies, capital expenditures and working capital to expand its markets and services.
The move comes amid signs of a rebound in the commercial real estate market. Total sales of commercial real estate properties priced at $1 million and above jumped to more than $340 billion in 2012, an increase of 41 percent over 2011, according to research by CoStar and Real Capital Analytics. The total value of U.S. commercial real estate assets was estimated to be $12 trillion at the end of 2012.
M&M is a national brokerage firm focusing primarily on the private client segment, consisting of transactions with prices under $10 million. The company has more than 1,100 investment sales and financing professionals in 73 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate.
The company generates revenues by collecting brokerage commissions upon the sale and fees upon the financing of commercial properties and, in addition, by providing consulting and advisory services. M&M closed more than 6,100 sales and financing transactions worth approximately $22 billion last year.
In 2012, the company reported a profit of $27.9 million on revenue of $385.7 million in 2012, up from $13.5 million in profit and $274.7 million in revenue a year earlier.
Goldman Sachs & Co. and Citigroup will serve as joint book runners for the IPO. The company has applied to list its shares on the New York Stock Exchange under the ticker symbol “MMI.”