Marcus & Millichap’s Multifamily Play: A New Leader in a Hot Market

The real estate market’s shifting dynamics have placed multifamily housing at the center of institutional investment strategies—a trend Marcus & Millichap’s Institutional Property Advisors (IPA) is poised to capitalize on with the hiring of Andrew Leahy as its new National Director of Multifamily. A seasoned veteran of $6 billion in transactions and a career spanning Blackstone, The Rockefeller Group, and Elme Communities, Leahy’s appointment signals a strategic escalation of IPA’s ambitions in one of the most resilient sectors of commercial real estate.

A Leader for a Growing Sector

Leahy’s pedigree is steeped in multifamily excellence. Over two decades, he has orchestrated deals across market cycles, from his early days at Blackstone to his role at Elme Communities, where he expanded the firm’s portfolio. At The Rockefeller Group, he spearheaded acquisitions for global private equity investors, a skill set now aimed at boosting IPA’s advisory reach. “Leahy’s ability to navigate both public and private institutional platforms gives him a unique lens for client needs,” says Hessam Nadji, CEO of Marcus & Millichap. This client-centric focus aligns with IPA’s goal of amplifying its role as a go-to partner for investors seeking scale and sophistication in multifamily deals.

Why Multifamily? Why Now?

The multifamily market’s enduring appeal is clear: it’s a sector insulated by demographic trends and economic cycles. Rents remain resilient even as office demand wanes, and institutional investors—from pension funds to private equity—are pouring capital into stabilized apartment assets. Marcus & Millichap’s 2024 performance underscores this momentum: the firm closed $49.6 billion in transactions across 7,836 deals, with its multifamily division contributing significantly to this total.

Yet the sector’s growth isn’t without challenges. Rising construction costs, supply constraints in key markets, and evolving tenant preferences demand a leader who can balance risk and opportunity. Enter Leahy, whose experience in both expansion and stabilization phases of real estate cycles positions him to guide IPA through these complexities.

The Financial Case for Optimism

Marcus & Millichap’s third-quarter 2024 results highlight the firm’s financial resilience. While it reported a net loss of $5.4 million, this marked a 41% improvement over the prior-year period, with financing fees surging 19% year-over-year. Meanwhile, the Middle Market and Larger Transaction segments—a key indicator of institutional activity—grew 15.1%, outpacing declines in the smaller Private Client Market.

Visualization would show MMI’s stock price stabilizing near $40–$45 since 2022, with revenue rising from $5.4 billion (2022) to $6.1 billion (2024), reflecting the firm’s focus on high-value deals.

This data points to a company prioritizing quality over quantity, a strategy that aligns with Leahy’s mandate to enhance service quality and deepen institutional ties.

The Path Forward

Leahy’s priorities are clear: expand IPA’s geographic footprint, leverage its proprietary research and technology tools, and strengthen client relationships in a competitive landscape. His experience at Elme Communities, where he navigated public markets, could also help Marcus & Millichap attract institutional investors seeking liquidity or exit strategies—a critical edge as capital continues flowing into multifamily.

The stakes are high. With over 1,678 professionals across 80+ offices, Marcus & Millichap has the infrastructure to scale, but success hinges on execution. Leahy’s track record suggests he’s up to the task. “This is a golden era for multifamily,” he said upon joining the firm. “The demand is there, and IPA’s platform is primed to lead.”

Conclusion: A Strategic Bet on Stability

Marcus & Millichap’s move to bolster its multifamily leadership comes at a pivotal moment. With Leahy’s expertise and the firm’s record of closing $49.6 billion in deals last year, IPA is well-positioned to capitalize on the sector’s growth. The numbers back this optimism: multifamily investment is expected to grow at a 6% annual clip through 2027, outpacing broader commercial real estate returns.

Yet the firm’s success will depend on its ability to stay ahead of evolving investor demands. Leahy’s tenure will be measured not just in transaction volume, but in how well he navigates the next wave of challenges—from regulatory shifts to ESG integration. For now, Marcus & Millichap’s bet on a proven leader in a proven market looks like a winning hand.

As the real estate cycle turns, IPA’s focus on institutional clients and its new captain’s seasoned vision may just solidify its place as the go-to partner in an ever-competitive multifamily arena.