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| A transaction instantly earned a Minneapolis commercial mortgage banker a top spot in the industry, and — just as quickly — the seller’s gain on the deal was lost in an unrelated lawsuit.
NorthMarq Capital Inc. announced that the mortgage banking and mortgage consulting services division of Legg Mason Real Estate Services is officially under its direction. The acquisition follows July’s announcement of the sealed deal with original LMRES parent, Legg Mason Inc., which says it is a global financial services company. The Minneapolis-based subsidiary of Marquette Financial Company claimed the title of third largest commercial real estate investment banking firm since acquiring LMRES last week. NorthMarq reported the unison upgrades its mortgage-servicing portfolio from $11.9 billion to $21 billion. Plus, annual transaction volume now exceeds $6.5 billion, of which LMRES contributes approximately $2.5 billion, a NorthMarq spokeswoman said in a phone interview. LMRES, which was founded in Philadelphia in 1954, operated with two businesses; full service commercial banking and real estate investment advisory. The advisory sector still remains Legg’s property. Meanwhile, the commercial banking division allows NorthMarq to operate in 28 non-overlapping offices concentrated in the eastern U.S., reported the new owner. Baltimore-based Legg reportedly did business with NorthMarq for more than 20 years. In a phone interview, a Legg spokeswoman said combining LMRES with NorthMarq created an opportunity to achieve economies of scale through the establishment of a national platform. “This is the combination of two great organizations with similar cultures and approaches to working with clients,” said Craig Butchenhart in a previously released announcement. NorthMarq reported Butchenhart, former LMRES president, assumes the position under the new NorthMarq. He will report to CEO Edward Padilla, who reiterated the merger gives the company “true nationwide presence.” On the other hand, earnings for Legg’s second quarter, which reportedly ended last week, apparently will not reflect an overall gain. The pretax $11 million the company said it expected to receive will be offset by a pretax $17.5 million litigation charge, according to the Wall Street Journal. The Baltimore-based company was sued for making unauthorized copies of a newsletter belonging to a Florida research firm, WSJ said. |
Coco Salazar is an assistant editor and staff writer for MortgageDaily.com.
