James F. McCaffrey – Leaving Meredith & Grew

Scrambling to rebuild its investment services capabilities following the defection of its entire commercial real estate sales team to rival Cushman & Wakefield, Trammell Crow Co. has tabbed industry veteran James F. McCaffrey to run the revamped operation, Banker & Tradesman has learned.

It is true, Trammell Crow principal Robert M. DeLaney acknowledged last week. He is coming over and we are delighted.

McCaffrey is one of the up-and-coming stars in the Boston market, said DeLaney, with fans both inside and outside the company. He is expected to be on board this week, after which point he and Trammell Crow principals will determine how best to proceed in hiring additional brokers and staff. DeLaney could provide no further details, while McCaffrey declined comment on the matter when contacted on Friday.

McCaffrey’s departure from Meredith & Grew is the latest high-profile personnel shakeup in the Hub’s commercial real estate sector in recent months. In June, four Trammell Crow brokers left to form their own real estate services firm, subsequently attracting key players from Insignia/ESG and Cushman & Wakefield. In August, a quartet from Meredith & Grew’s technology practice group launched another new company, followed by the stunning departure of Trammell Crow’s investment team to Cushman & Wakefield in October. Along with team leader Robert E. Griffin Jr., and principals Marci B. Griffith and Edward C. Maher Jr., all of Trammell’s middle market sales brokers and support staff made the switch.

One industry observer suggested the recent upheavals are partly a result of the real estate downturn, a migration initiated when brokers who had been enjoying the extended boom period were suddenly faced with reduced revenues and concerns about the future. It’s not 1999 anymore, said the broker, maintaining that the economic uncertainty and entrepreneurial nature of real estate professionals make such moves a natural aspect of the industry. In the recession of the late 1980s and early 1990s, many brokers switched affiliations, while others went on to form new companies. Trammell Crow’s predecessor, Fallon Hines & O’Connor, was founded amidst that evolving landscape, for example.

‘Uphill Battle’
At Meredith & Grew, however, the issue may have extended deeper than that, with sources close to the situation claiming that McCaffrey and some colleagues had been at odds recently with the firm’s leadership. Several sources reported that McCaffrey and colleague Roy Hirshland even tried to form their own company earlier this year after being rebuffed in a plan to increase their clout or buy out the closely held ownership of Meredith & Grew. The rift supposedly stemmed from a desire among some of the company’s younger members to have a greater say in decisions and share more in the firm’s upside.

Hirshland was one of the four technology team members who left in August to found T3 Realty Advisors, now up and running in Waltham. Hirshland declined to discuss the details of that move when contacted last week, offering nothing but praise for both his former company and McCaffrey. I think it’s a great opportunity for Jim and a great pickup for Trammell Crow, Hirshland said. I wish them all the best.

Nonetheless, sources insisted there had been such an effort by Hirshland and McCaffrey to restructure Meredith & Grew, while one colleague familiar with the situation predicted there could be additional departures from Meredith & Grew in the near future. It’s not going to be a significant number, but it could be more than one individual, said the source.

Meredith & Grew President Thomas Hynes Jr. did not return phone calls by Banker & Tradesman’s press deadline, but one source said the leadership is aware of McCaffrey’s decision. Right now, I think they are just trying to comprehend the ramifications of it, said the source, adding there has yet to be a formal announcement at Meredith & Grew.

As with many in the industry, the source said it was no big surprise that McCaffrey was tabbed by Trammell Crow to reconstruct the investment sales group. Not only is he said to be close friends with Trammell principal Charles S. O’Connor, McCaffrey also has the investment sales background and name recognition locally to help kick-start the lucrative division.

He’s very engaging, one broker said of McCaffrey. He’s bound to help them.

Another concurred with that outlook. Jim has a lot of friends and supporters, and I’m sure [Trammell Crow] will do everything they can to make it work, said the source.

At the same time, others stressed that it could take awhile before Trammell Crow has reestablished itself in the investment market, especially compared to the dominant position it had held during Griffin’s eight-year run with the firm. Trammell Crow had traded more than $1 billion of commercial properties during each of the past three years, including most of the top assets in Boston and Cambridge. Among the Hub sales made this year prior to the involved brokers’ move to Cushman & Wakefield had been the $375 million sale of One Federal St., as well as deals for 99 High St. and One Liberty Square.

McCaffrey faces an uphill battle in taking over the helm, said one source. It’s like replacing Bobby Orr, said the source. It’s kind of tough to go from winning the Stanley Cup every year to fighting to make the playoffs.

Troubled Trammell Crow Turns to McCaffrey

by Banker & Tradesman time to read: 3 min
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