Mission Capital and Marcus & Millichap’s Q2 Joint Marketing Efforts

Austin Parisi, Associate

The joint marketing effort between Mission Capital and Marcus & Millichap contributed to the recent successful auction of a $26,000,000 Non-Performing Loan secured by a largely vacant mixed-use building in the Nomad neighborhood of Manhattan.

Visit our website for more information about Loan Sales and Real Estate Sales now.

Mission Capital, a subsidiary of Marcus and Millichap, now leverages a platform of nearly 2,000 investment sales and financing professionals in 80 offices.  These boots on the ground have made Marcus the top investment sales broker in the United States based on transaction count over the last 15 years.  The proprietary comparable sale data and market research provided by Marcus increases Mission Capital’s valuation accuracy and execution success.

The joint marketing effort contributed to the recent successful auction of a $26,000,000 Non-Performing Loan secured by a largely vacant mixed-use building in the Nomad neighborhood of Manhattan. Mission Capital collaborated with the Anton team at Marcus & Millichap, who helped to accurately value the troubled collateral by understanding COVID-19 impacted lease up timelines, rental assumptions and the lengthy judicial foreclosure process in New York.  Of course, the combination of Mission Capital’s comprehensive investor data base of institutional note buyers and the alternative capital sources that typically transact with the Anton group was powerful rocket fuel for the aggressively bid live auction conducted on Real Insight Marketplace.

The benefits of the Mission Capital Marcus & the Millichap team extends well beyond traditional core asset classes. Our team is in the process of selling a Single Room Occupancy, or Co-Living asset in the Mission District of San Francisco. The persistence of COVID-19 variants has led to prolonged elevated vacancies in the SRO rental market since March of 2020 as remote workers migrated to cities with a cheaper cost of living. As people begin to transition to a post-COVID-19 world, employees are returning to gateway cities, which is evident by the rebound in urban multi-family rental rates as well as increased demand for SRO assets. In developing our valuation thesis and marketing plan, Mission Capital drew on its own expertise in arranging financing for co-living assets in the San Francisco – San Jose market and Marcus & Millichap’s Taylor Flynn.  Taylor is the leading investment sales broker of Co-Living and SRO properties assets in San Francisco.

The culture of sharing market intelligence and sales expertise throughout Marcus & Millichap’s various lines of business continues to be imperative to effectively advising our clients and generating positive outcomes.

joint marketing effort Mission Capital Marcus & Millichap

RESEARCH BRIEF | Marcus & Millichap

Published January 2022

Retail Sales Have Tailwinds Heading into 2022 Despite Soft End to 2021

Consumers step back in December. Core retail sales dipped 2.5 percent last month as spending that usually occurs closer to the holidays was spread over a longer shopping season. Furthermore, the highly contagious omicron variant of COVID-19 elevated case counts, keeping more people at home. Retail sales, however, are up 16.5 percent from one year ago and consumers still have more than $5 trillion additional funds in savings and money market accounts.








22_01 Retail Sales Research Brief

Thursday, October 28th, 2021

Pricing for Seasoned Performing Loans with David Tobin, Senior Managing Director

New Video

One of the most impressive characteristics of the recent surge in fixed income assets is how deep and strong the market is for seasoned performing loans collateralized by both commercial real estate and single family homes.

Why is this?

  • Persistently low rate environment
  • Unprecedented payoff velocity of existing loans
  • Unprecedented liquidity at banks generated by unspent COVID stimulus and a year of excess savings

How should financial institutions take advantage of this?

  • Examine loans at the lower end of the rate spectrum
  • Evaluate credits that were questionable pre-COVID
  • Consider exposure to businesses that peaked prior to COVID
  • Like with equity rallies, sell loans into this demand vortex

Even with the absence of call protection, premium transactions for seasoned higher rate loans are common place.

Pre-financial crisis era loans which may have been underwater (due to subordinate financing, collateral value issues or both) are now “in the money”.

In a market where asset prices are at historic levels, but where fundamental economic issues exists in certain hotspots, an equity market sell off will impair value across all asset classes and cause spreads to blow out. It is an opportune moment for portfolio balancing.


Who is Mission Capital?

Mission Capital Advisors, a subsidiary of Marcus & Millichap Capital Corporation, are experts in marketing loans secured by real estate. Learn more about who we are, what’s new, and why Mission Capital can help you with your loan sale needs.

The video features David Tobin – Senior Managing Director, Alex Draganiuk – Managing Director, and Spencer Kirsch – Vice President. Contact information can be reached at the following links below.

David Tobin can be contacted here.
Alex Draganiuk can be contacted here.
Spencer Kirsch can be contacted here.


Mission Capital is a full-service commercial, residential, and consumer loan sale, valuation, and advisory firm. We provide a wide array of services on behalf of our institutional and governmental clients through our tech-driven due diligence and trading platforms.

What’s new?
In November 2020, we were acquired by Marcus & Millichap, the #1 commercial real estate investment sales brokerage in the nation. The acquisition has significantly expanded our sales network and access to best-in-class research and local “boots on the ground” market knowledge.

Why Mission Capital?
We have been a top-tier loan sale advisory firm by volume every year since formation in 2002. Our extensive investor database consists of over 40,000 loan buyers for virtually all collateral types, and through our newly-formed partnership with Marcus & Millichap, we have added direct access to over 2,000 investment sales and financing executives in 82 offices across the US and Canada.

Secondary Market Liquidity for Hospitality Loans

Spencer Kirsch, Vice President, Loan Sales and Real Estate Sales

Spencer Kirsch, Vice President of Loan Sales & Trading, describes the state of the secondary market for hospitality loans, along with how buyers and sellers have altered their view of the sector over the last several months.

Visit our website for more information about Loan Sales and Real Estate Sales now.

Full Transcript

It’s no secret how material the effect of COVID has been on the Lodging sector in the U.S. With COVID-restrictions in place and a sharp decline in business and leisure travel, the occupancy, ADR, and RevPar figures across the industry plummeted by the end of 2020. Per TREPP, in Q4 2020, the overall delinquency percentage of lodging loans on bank balance sheets was 13.3%, significantly increased from the 1.1% delinquency rate in the first quarter. Additionally, by Q4 2020, lodging occupancy rates had dropped to 43%, well below the 72% rate present in Q4 2019.

Hospitality-focused debt firms and private equity firms alike have quickly identified an opportunity to raise capital to deploy in the sector. These firms banked on the opportunity to buy loans at discounts and restructure debt at higher interest rates or take title of the real estate. However, this capital was raised at a point when banks and other note holders were first starting to implement deferral or forbearance plans and were not ready to sell deferred loans at a discount and book losses. This led to a 6-month period of little-to-no hospitality loan transactions executing in the market from Q4 2020 through Q1 2021.

Fast-forward to present day, when the majority of deferral periods have ended or are close to ending, yet the sector is still a-ways away from stabilization and hotel bottom-lines are insufficient to cover debt service. Banks and other note holders who are unable or unwilling to implement further deferrals for impaired assets or don’t want to go through foreclosure processes are now more amenable to selling loans and realizing a controlled amount of loss. This has increased the opportunity for investors to acquire impaired hospitality loans at a discount to Par, with exit strategy optionality in-play.

At the same time, there remains a plentiful amount of hospitality-focused investment capital waiting to be deployed, along with a newly-formed, positive outlook on the industry. June in particular has brought upon a number of encouraging signs, as the country hit the 50% mark of vaccinated individuals, flight traveler count increased to more than 2 million for the first time since March 2020, and June hotel occupancy hit 61% across the US, which is the highest percentage in the pandemic era. The combination of excess dry powder and positive economic trends has resulted in an increased amount of investor interest, as well as tamed forward-looking default projections and tightened required yields. Ultimately, these factors have enabled sellers to trade deferred, scratch & dent or non-performing loans at a manageable discount, which has proved to be more economical than negotiating a new deferral or going through a foreclosure process .

We at Mission have been quite active in advising sellers of performing and non-performing hospitality loans over the last quarter and have a number of hospitality portfolios in the pipeline. We have represented clients in transactions executing anywhere from manageable discounts up to Par pricing, while garnering interest from a wide-variety of investors, including banks, pension funds, hedge funds, private equity firms, and others. We expect the hospitality market to remain liquid through the foreseeable future as forbearance periods continue to end and debt holders continue to offload distressed exposure while the sector gradually moves toward stabilization.