Andrew Maher
Title: Founder and Managing Director, Anchor Line Partners, Boston
Age: 42
Experience: 18 years
Former Equity Office Properties executive Andrew Maher says he chose anxiety over frustration when he struck out on his own and founded his own commercial real estate development company, Boston-based Anchor Line Partners, a year ago. But Maher says he has no regrets. In June, Anchor Line made its first acquisition when it bought Cross Point, the 1-million-square-foot former Wang Laboratories headquarters in Lowell, for $100 million. It’s modernizing the office complex with hip common-area amenities such as a coffee bar, pub and gaming room as it recruits office tenants for 350,000 square feet of vacant space.
Q: What was your role at Blackstone’s Equity Office Properties?
A: My relationship with Blackstone developed as a broker at CBRE for 11 years. I was made partner and one of my largest clients was Blackstone, so when they acquired the portfolio I helped them underwrite it. The week of the acquisition they asked me to join them to help them with the income side of the business. We had five brokerage houses representing us on various transactions.
Q: What are the advantages of using outside brokerages?
A: You’re hiring the individuals more than you are the platform behind them, pairing them up with the assets that they’re most active in. There’s certain firms that are highly visible and active in the A-plus towers, which makes them a logical fit to represent us in one of those buildings. In the suburbs, there’s regionally focused groups. The advantages are you have full visibility on the market, particularly when you have more than one. Having multiple brokerage houses, we can cross-check information when we make decisions rather than being in the vacuum of being the landlord.
Q: When you left EOP, what considerations went into your decision to start a new firm rather than joining another big brokerage?
A: I tried to do 100 meetings in 90 days. Through my Rolodex and my opportunities working at Equity, I got to know leaders of lots of large and small companies in Boston. The most insightful meeting I took was with John White, managing director at Barclays Capital. John gave me the best description of it: There’s two opportunities I’m looking at it. One end of the scale is frustration and on the other end is anxiety. I’ve clearly spiked out to the anxiety side. The frustration would have been going back to something I’ve already done. I wanted to grow professionally and individually, and that’s taken me to the anxiety side of the scale. So far, I seem to enjoy it.
Q: How far along is the repositioning of Cross Point in Lowell?
A: We’ve got 100,000 square feet of leases we think we’re going to sign by year’s end. We recognize there’s a pretty interesting formula to reposition these assets in a way that casts the buildings in a far better light. Our goal is to deliver great amenities in common areas so companies can use them as a recruiting tool for employees. We started the renovation of the café, a $2.5 million investment. We’re removing the curtain wall of the building and bringing in floor-to-ceiling retail glass. We’re creating smaller rooms. There will be a pub area, low seating with TV’s on the walls, some gaming, a private dining area, and an area with restaurant seating and exposed brick and banquettes.
Q: Are you looking for additional acquisitions?
A: We are. Our goal is to buy buildings that have leasing or occupancy challenges. It’s the similar theory that Blackstone had when they started: buy it, fix it and sell it.
Q: What the biggest change in the industry during your career?
A: The returns that core investors are seeking today. When I started in the business in 1996, the cap rates were probably twice what they are today. That’s the biggest change. What doesn’t change is the people who are in it. The relationships you have in this town span back decades. Sometimes the nameplates on the business cards change but the people certainly don’t. And I’m a people-person, so that’s the part I enjoy most about our business.
Maher’s Top Five Best Bets:
- Drink: Mountain Dew
- Beach: Sandy Neck in Barnstable
- Book: “Blink,” by Malcolm Gladwell
- Nickname: STU (special teams unit)
- Round of golf: Hyannisport with dad, brother and son
