The Grossman Companies   Quincy Massachusetts

About This Sponsor

The Grossman Companies, Inc. is a real estate investment, development and management company that invests in real estate assets in Southern New England.  Due to the geographic concentration in the region, the principals pursue diversification through real estate assetclass selection (retail, office, industrial, apartments, self-storage) and risk variety.

  • Geographic Regions: Northeast
  • Risk Profiles: Stabilized (5-8%), Value Add (8-12%), Opportunistic (12-20%), Development (25%+)
  • Property Types Office, Retail / Shopping Center, Industrial, Multi-Family, Self Storage, Mixed Use, Flex
  • Total Capitalization $400M
  • Gross Leasable Area 3,000,000 sqft

Company Overview

The Grossman family’s business roots are in the building supply/lumber business, which at its peak consisted of eighty-three (83) retail stores/lumber yards in New England and New York.

The operating business was sold in 1969 but the family maintained ownership of the real estate (which was leased back to the operating business). The family also maintained its home-builder finance business, which provided construction loans to home builders during the lumber years.   In 1980, Morton and Louis Grossman amicably acquired the real estate interests of the other eighty-three (83) family stock holders by selling the majority of the lumber branches to a publicly traded Real Estate Investment Trust.

Today, The Grossman Companies, Inc. (“TGCI”) is a vertically-integrated organization operating two primary business lines: Commercial real estate investment, including brokerage and property management, and real estate private lending

In its real estate investment business, TGCI owns and manages an approximate 3.0 million square feet of commercial property throughout Southern New England.

In its real estate private lending business, TGCI originates, manages and services an approximate $50 million private loan portfolio.

The two business lines are complementary. Each benefits from the other due to the leveraging of (i) the various skills sets within the organization, (ii) asset and market-level information, and (iii) shared deal sourcing.

In addition, the lending business generates current income with a nine (9) to twelve (12) month investment time horizon and lower risk/lower return profile, while the investment business targets capital appreciation opportunities with a three (3) to ten (10) year investment horizon and higher risk/higher return.

Acquisition Criteria

Affiliates of The Grossman Companies, Inc. seek real estate investment opportunities where the likely rewards outweigh the risk.  The principals are focused on i) value creation opportunities primarily through repositioning, redevelopment or re-leasing, ii) revenue growth potential in improving or recovering markets and iii) structured transactions that capture inefficient pricing.  Geographically focused in Southern New England, the principals purposefully diversify their real estate investments by product type, hold period and level of risk.

  • Location: New England
  • Property Type: Retail, Industrial, Office, Residential, Self-Storage, “Main Street”
  • Target Deal Size: $2,000,000 - $25,000,000
  • Target Leverage: 60% - 75%
  • Target Minimum Return: 10% - 20%
  • Target Hold Period: 2 – 20+ years

Portfolio

Number of Properties 40
Total Square Footage +/- 3 Million SF
Total Capitalization $400 Million
Major Tenants in Portfolio Stop & Shop, Price Rite Supermarkets, CVS, TJX, Olympia Sports, Rite Aid, 7Eleven, Dollar Tree, Family Dollar, Citizens Bank, General Electric , Navigator Management Group, Lenovo USA

Case Studies

1400 Bald Hill Road

Capitalize on the property's location and our attractive cost basis to lease up the vacancy


Lake Road

Take advantage of attractive cost basis to pursue all tenant requirements in the market while pursuing opportunities to monetize the land, to which we ascribed little value at acquisition


Braintree Executive Park

Upgrade the 1980's vintage common areas and aggressively market vacancy


Executive Team

Louis J. Grossman
Chairman

Louis has been our chairman and treasurer since 1980, when he and his father, Morton, purchased the family real estate business and reformed the company under the new name. Under his leadership, The Grossman Companies has developed and acquired a portfolio of over 40 commercial and residential properties, primarily in New England.

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In 1976 Louis began his real estate career with Sonnenblick-Goldman Advisory Corporation in New York. There, he served as mortgageofficer for two real estate investment trusts. A graduate of Brown University with a BA in economics, Louis earned his MBA from Columbia University's School of Business.


Jacob M. Grossman
Co-President

Jake and his brother David represent the fifth generation of the Grossman family to work in our business. Jake's roles include sourcing new acquisitions and investment partnerships along with the asset management of our real estate portfolio, which comprises approximately 3 million square feet of properties in Southern New England.

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Prior to joining The Grossman Companies in 2011, Jake spent five years at BayNorth Capital, a real estate private equity firm in Boston. There, he handled acquisitions and asset management of various real estate asset classes across the country. Earlier in his career, he worked in Cushman & Wakefield's Capital Markets Group. Jake graduated cum laude from Brown.


David B. Grossman
Co-President

David oversees the management and origination of new loans and homebuilder joint-venture equity investments for our private lending affiliate, First Boston Capital Partners. In addition, he is actively involved in the asset management and financing of our commercial real estate portfolio.

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Prior to joining The Grossman Companies in 2009, David served as vice president of acquisitions at Louis Dreyfus Property Group inNew York. Earlier in his career, he worked for five years at Wells Fargo's Real Estate Merchant Banking Group in Boston; Washington, DC; and New York.

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