Sam Schaefer
CEO, Hobbs Brook Management
Age: 47
Industry experience: 22 years
One of the original developers of office parks on Route 128 has a new CEO. In 1954, Hobbs Brook Management developed its first office building at 225 Wyman St. in Waltham. Today the property is being reinvented with construction of a four-story, 507,000-square-foot speculative office and lab building. When completed in 2022, 225 Wyman will become the largest contiguous block of office space in the Route 128 market. The project comes as Hobbs Brook adds new leadership with September’s arrival of new CEO Sam Schaefer, who previously spent 18 years with developer Tishman Speyer. Waltham-based Hobbs Brook is the real estate arm of FM Global, a Rhode Island insurance company.
Q: Which properties were under your purview at Tishman Speyer?
A: I had stepped out of the Boston business and moved back to the Boston market about 10 years ago to take over leasing of the Boston portfolio. We had a couple of holes at 125 High St., and 1 Federal St. was a complete redevelopment. There were big 55,000-square-foot floor plates that had been check processing floors for Shawmut Bank. Those floors were windowless spaces, and we wanted to convert it to office space. We replaced the facade with full height glass and updated HVAC and common areas and repositioned those floors. At 125 High St., we had a couple of big blocks that we filled with Wells Fargo and Houghton Mifflin and got it stabilized. The development in the Seaport has really forced the landlords’ hands. Every tenant wants to look at the Seaport.
Q: How many proposals did you have for the office space at Pier 4?
A: We had a lot of interest from terrific tenants. There was a lot of curiosity about what we were going to do with that pier. Anybody who has any interest in Boston knows about the property and there was interest in how we would repurpose that pier and convert it into office and residential. But at the end of the day, we didn’t have to issue many proposals. Boston Consulting Group stepped forward early on and we developed a good relationship with them.
Q: What makes a big spec building in the suburbs like 225 Wyman the right move?
A: It’s a really interesting project. There’s a lot of upside and potential with this portfolio. What attracted me to this position was the strength of the organization and the commitment to managing and developing great real estate. 225 Wyman St. is positioned to attract and address the growing demand for lab space in Greater Boston. Cambridge is incredibly tight and there are few opportunities for lab users. Waltham has been one of the strongest submarkets, and we feel like it’s in a really good position.
Q: What’s Hobbs Brook Management’s business model?
A: We have no debt, no joint venture partners and no limited partners. It’s a very clean stable platform and one I think tenants will appreciate, knowing we are long-term holders. As best as I can tell, Hobbs Brook has never sold an asset, at least of the portfolio in the western suburbs. The commitment to long-term ownership and stability is there. In terms of opening up to other markets, that’s one of the things that’s exciting for me: we’re not biased to any one market. What Hobbs Brook is looking for is long-term predictable cash flow and well-managed assets. That might be downtown Boston or the I-495 corridor. We’re engaging with the investment sales community to see if there are other opportunities to grow our assets.
Q: Was real estate your first career choice, and what was your first job in the industry?
A: My first job in the industry was a property management business in suburban Chicago, answering phones in Rosemont, Illinois in 1997. I went to school in the Midwest and spent a lot of time working on a ranch in Wyoming for seven years before I decided to get my career going. I was a restless teenager and eager to spend some time out West, so I sent a dozen cover letters to ranches in Montana and Wyoming, and got two responses back, one of which included a job offer. I had a rancher say, “I’d love to have you come work. If you can be here in Jackson Hole, I’ll pick you up. You’ll work seven days a week for $350 a month, food and a place to live.” It sounded like a good deal to me. It was the best experience of my life.
Five Favorite Family Vacations:
- Southeast Alaska cruise
- Southwest U.S.: Zion and Grand Canyon National Park, Sedona
- Wyoming dude ranch and Yellowstone National Park
- British Virgin Islands barefoot sailing
- Acadia National Park & Southwest Harbor, Maine
