Combined Properties Vice President Christopher N. Maietta (left) and President John M. Pereira have a company whose portfolio is fully leased at present.
In terms of monikers, Malden-based Combined Properties has a name as appropriate as any one might find – and is getting more so every day.
Now in its 25th year, Combined owns an eclectic mix of commercial real estate totaling nearly 2 million square feet. Primarily situated in communities north of Boston, the holdings feature a mix of office, retail and industrial buildings, including a new community shopping plaza recently developed along Route 60 in downtown Malden. The firm also has assets in Chelsea, Peabody and Medford, extending its reach as far north as Gloucester and westward into Maynard.
“We go where the opportunities are,” explained Vice President Christopher N. Maietta in an interview last week. “We don’t set out to be in one particular municipality or go after just one type of property. You really have to feel out the market and [try to decipher] what kinds of uses are needed there.”
Combined seems to have that process down pat, with President John M. Pereira noting that the firm’s portfolio is fully leased at present. If there has been any major upheaval in the commercial sector due to the sluggish economy, “we haven’t felt it yet,” said Pereira. One reason, he said, is that the Malden area was not as sought-out by the technology firms which are now hemorrhaging red ink and abandoning space in droves.
“There is some softness, but not in this market,” said Pereira. “I don’t think supply exceeds demand right now.”
Combined Properties is so enthused that it is marching full speed ahead with the redevelopment of a shuttered Malden industrial building into modern office or laboratory space, depending on tenant interest. Some five years after initiating its renovation effort of 195 Canal St., Combined held a broker open house last Tuesday to show off the structure, which is currently in shell form and ready for tenant build-out. Among those impressed by the overhaul was Robert Nahigian, president of Auburndale Realty.
“It has very good fundamentals,” said Nahigian. “I think they will do well there.”
Among the facility’s strong points, according to Nahigian, are the skyline views of Boston, a waterfront location and a parking ratio of four vehicles per 1,000 square feet of leased space. The $25 per-square-foot rental rates are competitive, said Nahigian, adding that Combined’s willingness to subdivide the space into sections as small as 3,000 square feet should also attract tenants.
Nahigian, whose first deal in Boston was with Combined Properties in the early 1980s, said the project is another step in Malden’s ongoing transformation from heavy industrial to light manufacturing, research and office functions. It was a trend which Combined itself helped launch in the late 1980s with construction of what is now FleetBoston’s operations center. That progress was interrupted by the subsequent real estate crash, but Nahigian said Malden is once again being seen as a practical alternative to pricey downtown Boston or Cambridge rents.
“This isn’t something you could have done 10 years ago,” he said. “It takes time, but when you have the time, you can be creative.”
Nahigian also praised the leadership depth of Combined Properties, with Pereira’s law degree helpful on the firm’s legal matters, while Maietta has extensive experience in both leasing and developing commercial projects.
“John and Chris have done a great job in the past few years,” said Nahigian, who previously had worked with Combined founder Stanton L. Black. “They’ve got a really good team over there.”
Pereira, who joined in 1987 as legal counsel and acquired the firm following Black’s death in 1994, said Combined has established an expertise in upgrading older properties, especially those with environmental issues that may frighten other developers away. Indeed, 195 Canal St. was on the market for 18 months before Combined stepped up and bought the structure. An environmental cleanup of the property is nearing completion, said Pereira.
“Every project stands on its own” when dealing with an environmental challenge, said Pereira, who holds a degree in civil engineering. The first step is to assess the contamination, he said, with Combined willing to put up the equity necessary to pursue those it believes can be cleaned up. Knowing the various methods of restoring a brownfields site is also helpful.
“We’ve learned how to cope with it, and how to get cash flow from the building,” Pereira said.
Combined is now turning its attention toward a sector it has previously shied away from, with the firm recently winning approvals from the city of Malden to build a 204-unit apartment building on Pleasant Street in the heart of the downtown area. The effort is currently on hold due to an abutter’s challenge, but city officials are expressing hope that the project will move forward in the near term.
Maietta said Combined has only dabbled briefly in the multifamily housing sector, and currently has no residential assets. Along with a desire to revitalize the 45,000-square-foot retail building currently on the site, and to help enliven the downtown, Maietta said it is also an attempt to further diversify Combined’s portfolio.
“It does have that characteristic of constant demand,” said Maietta. Combined is also encouraged by the barriers to entry for such developments locally, helping to keep supply in check. If it survives the abutter appeal, the building would be developed on a half-acre site bordered by Pleasant, Abbot and Exchange streets.
Another bonus for the residential project, as well as Combined’s other Malden assets, is the presence of the MBTA’s Orange Line and commuter rail lines that run through downtown. The apartment building would be transit-oriented, said Maietta, while 195 Canal St. should also benefit by the availability of public transportation.
