NorthMarq to Buy Legg Mason Unit

NorthMarq Capital Inc., Minneapolis, is acquiring the commercial mortgage financing and commercial mortgage servicing businesses of Legg Mason Real Estate Services in a deal that NorthMarq said is expected to create the third-largest commercial mortgage banking organization in the United States.The terms of the deal were not disclosed, but Baltimore-based Legg Mason said it expects to record a pretax gain of approximately $11 million on the transaction, which does not include its real estate investment advisory business or any other Legg Mason business. NorthMarq said that, after the deal is done, it will have 28 offices across the country, 350 employees, more than $6.5 billion in annual commercial real estate financing (including both debt and equity transactions), and more than $21 billion in commercial mortgage servicing. "This transaction gives us a true nationwide presence with stable management and a strong industry reputation," said Edward Padilla, NorthMarq's chief executive officer. "We now can offer a national platform across multiple markets and provide more options to our clients than ever before." Walt D'Alessio, chairman and CEO of LMRES, will become vice chair of NorthMarq, and Craig Butchenhart will become president, reporting to Mr. Padilla.