Newmark is stepping up its ambitions in the advisory space following a string of big-ticket transactions.
Chief executive Barry Gosin said the agency – which in the UK owns BH2 and Gerald Eve – is bringing in new talent to help it win work on larger, more complex deals.
Asked on a third-quarter earnings call about the firm’s push to generate “traditional investment bank revenues that complement the brokerage verticals”, Gosin said Newmark is investing “more heavily” in the advisory business, including bringing bankers onto the team.
“We are starting to do more complex, more in-depth kinds of transactions where we see a real opportunity in REIT-to-REIT M&A continuations, total recaps, new investors and debt providers, and we think we are in a good place to do that,” Gosin said.
As well as the firm’s role selling Signature Bank’s $60bn loan book on behalf of the Federal Deposit Insurance Company, Gosin highlighted its work with Blackstone Real Estate Income Trust on the $2.2bn sale of Simply Self Storage; securing a $947m loan for Los Angeles’ Park La Brea, the largest apartment scheme on the West Coast; and last week’s sale of a three-property, 673-home multifamily portfolio in Texas.
“In most of these cases, there were other incumbents that we are picking up these opportunities from, and we continue to be the go-to company in respect of providing the more creative solutions,” Gosin said. “So we just see a vast array and a wider spectrum of things in the real estate business right now that will bring our talent to the table. We are in the room, and that’s the first step.”
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