NorthMark Deal Makes Big Servicer.

NorthMarq Capital is acquiring the commercial mortgage financing and commercial mortgage servicing businesses of Legg Mason Real Estate Services in a deal that NorthMarq says will 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 reports that it expects to record a pre-tax gain of approximately $11 million on the transaction, which the company specifies does not include its real estate investment advisory business or any other Legg Mason business.

Bert Colianni, executive vice president and COO of Marquette Financial - a financial services firm based here, owned by the Pohlad family, and NorthMarq's parent company - said, "This is a very attractive business segment for Marquette. We're committed to growing this key segment of our portfolio of companies going forward."

NorthMarq reports that after the deal is done, the company 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.

Edward Padilla, NorthMarq CEO, who will head the Minneapolis-based organization, said, "This transaction gives us a true nationwide presence with stable management and a strong industry ...