Jonathan G. Davis – ‘Very excited’
Here’s betting they will manage somehow, but the New Boston Fund is losing a key member of the real estate investment firm’s brain trust, as William M. McAvoy is departing for the Davis Cos. “The rumor is true,” McAvoy acknowledged last week, explaining that he will be leaving NBF at the end of June and joining the newer employer after Labor Day.
Few could argue that NBF’s chief investment officer doesn’t deserve a respite after overseeing more than $1 billion in real estate transactions since joining the firm in 1990. The past decade has been especially hectic, as McAvoy played a leading role in the firm’s expansion from a private company focused on the Boston market to one that now has property in 12 states nationally and employs some 150 people. NBF’s first investment fund in 1993 was $9.5 million. Presently, McAvoy noted, the firm is in the process of raising $400 million in equity for its sixth fund. Among the prominent local assets NBF now controls are 116 Huntington Ave. in Boston, Waltham’s Watermill Center and Rivertech Park in Billerica.
In preparing for his departure, McAvoy offered a generous review of his tenure at NBF, where he helped President Jerry Rappaport Jr. forge a new chapter for the company founded by Boston real estate icon Jerome Rappaport. “It has been a great experience and Jerry is a very good person to work with,” said McAvoy. The new position will be similar to that at NBF, he said, with the main difference being the Davis Cos.’ tighter geographic range, one focused on the Bay State and Fairfield County in Connecticut.
Jerry Rappaport Jr. saluted his longtime colleague, calling McAvoy “a very good friend and somebody who has a great real estate mind.” McAvoy will continue to serve as an advisor, said Rappaport, adding that NBF may consider adding new talent but insisting that the firm is already well stocked. “I do already have a very deep senior management bench in development, portfolio management, finance, etc.,” he stressed.
Davis Cos. Chief Executive Officer Jonathan G. Davis said he and partner Paul R. Marcus are eagerly anticipating McAvoy’s arrival at the Boston-based firm. According to Davis, McAvoy “is one of the best acquisition specialists in the Northeast, if not the entire country.”
While concurring that the 29-year-old firm does not have the same manifest destiny as NBF, Davis said the firm is nonetheless prepared to make property purchases when they fit the company’s business strategy, especially as the economic climate improves. Currently, Davis said, many deals are overheated by excess competition or unrealistic sellers. Meanwhile, the Davis Cos. is focused on completing several high-profile development projects, including the overhaul of 300,000 square feet at Boston’s Charles River Plaza. As demand heats up and sensible deals become available, the Davis Cos. plans to rely heavily on McAvoy’s investment expertise, said Davis. “Paul and I are very excited at having Bill join us,” he said.
Small Change
INCISOR TRADING: Institutional investors and private real estate players are not the only ones chomping at the bit for real estate opportunities in New England, with users becoming increasingly active players as well. That trend was underscored recently by the Massachusetts Dental Society‘s purchase of 2 Willow St. in Southborough, where it has been based for the past five years.
Much like a root canal, the MDS deal was a complicated undertaking, with the organization having previously held a minority position in the 2-story, 40,000-square-foot building. Essentially, the deal involved a buyout of 2 Willow St.’s majority partner and developer, Firmin LLC, headed up by veteran suburban developer Richard B. Strehlke. The $6.1 million transaction was brokered by Garry R. Holmes of R.W. Holmes Realty in Natick.
Weekly Statement
“With … the long-delayed, but now current rebound in the Massachusetts economy, we are expecting the region to catch up in the second half of 2004.”
Ross Gittell, economics professor, on New England’s business outlook.
