Marcus & Millichap Special Assets Services Completes Highest Number of Distressed Property Valuations and Sales Since 1993

Pipeline indicates major wave of distressed property sales starting in 2009

NEW YORK, N.Y-– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced that in 2008 its Special Assets Services division will complete the highest volume of distressed asset valuations and sales since 1993.

“To date we have completed more than 1,000 property valuations for a wide variety of financial institutions, asset managers and large owners – and we expect that number to exceed 1,500 by year’s end 2008,” says Bernie Haddigan, (top right photo) managing director of Marcus & Millichap, and executive in charge of the Special Assets Services division.

“We have already sold more than 100 troubled assets this year, which are being well received by private investors, and expect to market a large volume of these properties over the next several months. This is driven by our lender clients’ need to clear their balance sheets and various types of funds, which are actively working to free up capital,” he adds.

The Special Assets Services division, which was formed in 2006 and expanded earlier this year, is comprised of eight regional directors located throughout the United States who oversee a team of experienced investment brokers, located throughout Marcus & Millichap’s network of offices.

These investment sales specialists bring the highest level of expertise in the private investment market place.

“While we saw a marked increase in our assignments related to property specific financial problems and bankruptcies over prior years, the spike in our activity this year was with local and regional banks,” says Scott LaMontagne, head of the division’s western region, based in Los Angeles.

“Our agents have traditionally maintained relationships with local and regional lenders and are being called upon to assess the degree of the problem in commercial portfolios and bring a large portion of them to market,” explains John Leonard, the division’s eastern regional director based in Atlanta.

Commercial real estate fundamentals remained relatively healthy through the first half of 2008 with the exception of the retail property sector, which added a relatively large inventory of new product over the past three years, according to Marcus & Millichap Research Services.

“The escalation of the downturn into a global financial crisis in recent months has intensified job losses, which will lead to higher vacancies on one hand, and substantial strain on financial institutions on the other hand,” notes Haddigan.

“This combination is elevating the number of assets that have to be sold. We are actively working with Wall Street firms and national banks that sought a corporate-level solution with a single point of contact and accountability for rapidly analyzing and valuing properties, advising them on the right strategy and disposing of the assets that should be sold,” he adds.

Marcus & Millichap brings several key advantages to owners and lenders of distressed properties including its market research, extensive local market coverage, particularly in secondary and tertiary markets where much of the distressed inventory is concentrated; and most important, its industry-leading access to private capital.

“We engage a team that can assess properties thoroughly and quickly, and expose the appropriate assets to the largest pool of private investors nationally who make up more than 90 percent of sales in the current market,” according to Haddigan.

Press Contact: Stacey Corso, Communications Department, (925) 953-1716