A pair of capital markets firms are combining to form a new national commercial mortgage brokerage to double transaction volume in the next three years to more than $2 billion annually.
Metropolis Capital Advisors and AMA Financial said this week they combined as Metropolis-AMA Advisors. The new firm said it will specialize in a broad scope of structured finance and equity options for the full spectrum of real estate asset classes.
The new firm is led by co-CEOs Gregg Wallace, founder of AMA Financial, and Clifford Mendelson, founder of Metropolis Capital Advisors.
Metropolis-AMA Advisors said it has dual headquarters, with head offices at the firms' existing spaces in Bethesda, Maryland, near Washington, D.C., and just outside of Philadelphia, a spokesperson for the combined entity confirmed via email.
The decision to join forces comes as the capital markets used by developers and investors to raise money to build and buy projects remain somewhat tight but are showing signs of loosening as more money becomes available for commercial transactions.
"Headwinds will continue for commercial real estate owners and investors and, despite going through a transition, there are tremendous opportunities available to those which have successfully managed their balance sheets," Wallace said in the statement. "The real estate loans due to mature in coming months were executed with historically-low interest rates and owners will need to creatively manage its capital stack during the refinancing process."
Completing office investment sales remains hard due to challenging financing and an uncertain economic outlook in and around Washington, D.C., according to a CoStar report on the area office market. In Philadelphia, despite some stability in the city's office space market, it has yet to find its footing in 2025, according to CoStar.
"Annual sales volume totaled $770 million in 2024—a 25% decline year over year to hit a new 12-year bottom. Philadelphia's drop-off in investment is now nearing the depths of the Great Recession," according to the report.
Financing activity for commercial deals, however, is turning the corner in some markets across the country, including New York and Houston, CoStar data shows. Also, cuts in interest rates made by the Federal Reserve last year are expected to help boost activity to some degree.
In addition to its dual headquarters, Metropolis-AMA Advisors plans to operate out of regional offices in Dallas and Fort Lauderdale, Florida, and open offices in Los Angeles and New York City. In addition, the firm said it intends to hire seven to 10 new loan originators in anticipation of its growth.
"Following years of working together to assist the needs of clients and recognizing our respective companies' strengths, we decided to form one powerhouse group that leverages the talents, resources and experiences of the combined group, which would provide the fuel for accelerated growth," Mendelson said in the statement.