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- Date Announced
- Seller AUM
- MONY Realty Capital, Inc. (AXA Financial, Inc.)
- Municipal Mortgage & Equity, LLC (MuniMae)
- Real Estate Managers
- January 27, 2005
- $3.5 Billion
MRC, which has over $2 billion in assets under management, consists of a regional network of approximately 35 professionals who source, underwrite, structure, close and manage commercial real estate investments. Since 1997, MRC (and its predecessor organization) has originated approximately $3.2 billion in commercial debt investments, including $1.2 billion in high yield or structured transactions (including construction loans, bridge loans, mezzanine investments and B-notes).
MuniMae and its subsidiaries originate, service and asset manage investments in multifamily debt and equity for its own account and on behalf of others. MuniMae conducts these operations through its subsidiary, MMA Financial, LLC. As of September 30, 2004, assets under management totaled $9.3 billion secured by 2,217 properties containing 249,850 units in 49 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. For its proprietary accounts, MuniMae primarily holds tax-exempt multifamily housing bonds. This on-balance sheet portfolio is secured by 177 properties containing 37,581 units in 27 states. For a portion of these investments, MuniMae participates in the performance of the underlying properties.
This transaction increases MuniMae's assets under management by more than 20%, jump-starts the growth of our investment advisory business, and expands its platform beyond multifamily housing. It increases product distribution and provides the opportunity to build upon some very strong investor relationships, particularly in the financial institution and institutional investor segments.
Following the closing of the transaction, MRC will operate under the name MMA Realty Capital, Inc. Essentially the entire team of MRC (including the regional office network) will remain intact and will continue under the leadership of Thomas McCahill, who will be joining MuniMae's senior management committee.
MRC will continue to manage $1.9 billion in real estate investments on behalf of MONY Life Insurance Company and MONY Life Insurance Company of America, as well as MRC's two proprietary mezzanine funds, its B-Note Value Added Fund, and other selected third party accounts. MRC is expected to grow as it expands upon its successful third party investment management business, which is one of the key drivers in the transaction with MuniMae.
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