Milwaukee-based commercial real estate brokerage and management firm MLG Commercial LLC has been acquired by New York-based Newmark Group Inc.
[caption id="attachment_378492" align="alignright" width="414"]
From left: Jack Jacobson, Bruce Westling, John Malloy, Stephen Provancher, Brian Vanevenhoven and Barry Chavin, all of Newmark Knight Frank's senior team. (Courtesy: NKF)[/caption]
Newmark Group, which operates global full-service real estate services firm Newmark Knight Frank, acquired MLG on Tuesday, said John Malloy, managing director at MLG. The dollar amount was not disclosed. According to a news release, the acquisition grows Newmark Group's market share in a key region "where there is robust demand for commercial real estate services."
“Newmark and MLG are a perfect fit. Both businesses have a track record of growth and support for brokers that is evident to anyone in our industry,” Malloy said. “As we continue to deliver excellent client service, we look forward to offering an expanded suite of services under this powerful global brand.”
BizTimes first reported on the pending deal
back in May 2018.
Malloy said MLG has been researching a number of firms to join up with over the last seven years or so. It found that NKF was a good fit due to its footprint, overall brand and its similar leadership style to MLG. Moreover, the firm would allow MLG to "provide offerings for our clients and brokers specifically that we didn't otherwise have in our toolbox."
MLG will also operate very similarly to the way it was before the acquisition. Malloy said all current employees will remain, as well as current leadership.
"That's one of the things that attracted them to us, they operate in similar fashion to us and they emphasized they want everyone here to continue operating as they have," he said.
Newmark Group has a history of growth through acquisitions, having completed 16 of them since 2017, according to the release.
"MLG emerged as a perfect fit because the team is similarly growth-minded and focused on excellent client service,” said Barry Gosin, chief executive officer of Newmark Group.
Gosin added that companies acquired by Newmark have increased revenue by an average of 30%.
"This deal is one of the many steps we have taken to create value and drive momentum through the rest of 2019, along with making strategic hires that expand our geographic presence and enhance our specialized offerings," he said.
MLG specializes in the sale, lease, acquisition and management of industrial, office, retail and multi-family properties. It has offices in Milwaukee and Madison. Prior to the acquisition, the firm was owned by Malloy, Barry Chavin, Jack Jacobson, Stephen Provancher, Brian Vanevenhoven and Bruce Westling.
Michael Mooney partnered with Pat LeSage, Phil Martin and Michael Zimmer to create Mooney LeSage & Associates, Ltd. in 1987. Two years later, Tim Wallen and Chavin joined what had become MLG. Wallen now heads MLG Capital
, a private equity firm that specializes in investing in small and mid-sized private real estate properties. In 2000, the company separated from MLG Commercial.
NKF offers a complete suite of services and products for both owners and tenants. Along with London-based partner Knight Frank and independently owned offices, NKF counts 16,000 professionals across 430 offices on six continents.
NKF's investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt, and structured finance and loan sales.
Tenant services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration, and facilities management.