New player in market for retail property

By Casey Ross, Globe Staff | October 7, 2009

Commercial real estate powerhouse CB Richard Ellis/New England is launching a venture with one of the region’s largest players in retail leasing, with the two trying to capitalize on an economic rebound that will probably lead to new property redevelopments and store openings over the next few years.

CB Richard Ellis is forming a joint venture with Grossman Commercial Real Estate Group, whose principals have represented Puma, Linens ‘N Things, and CVS drugstores.

The new entity, to be called CBRE/Grossman Retail Advisors, should be a formidable player in the region’s retail market. Principals said the current slowdown presented an unusual opportunity to join forces, allowing them to create new business now and expand as retailers emerge from the doldrums to scout new locations.

“Our expectation is that we’re hitting the ground running at the right point in the curve,’’ said Kevin M. Doyle, co-managing partner for CBRE/New England. “We see a lot of opportunities for retailers, and that will grow in the future.’’

The move gives CBRE a retail brokerage operation that it has long lacked in the region. The firm currently focuses on office and industrial properties, but does not have a retail leasing operation.

The new venture will handle leasing, property management, development, and consulting for landlords and tenants looking to expand or overhaul their properties. Local real estate analysts said the new venture will be able to seize opportunities created by the economic downturn, which has led to store closings in prime locations that are now available at much cheaper prices.

“There are very unique opportunities out there that we haven’t seen in 15 years,’’ said David Begelfer, chief executive of NAIOP Massachusetts, a commercial real estate association. “There will be a lot more transactions in the retail market as a result of that.’’

For Grossman, led by Howard Grossman and his son, Jeremy, the deal allows the firm to hitch its name to one of the region’s largest players in commercial real estate.

Howard Grossman will serve as president of the joint venture. He has worked in the New England market for 35 years. During the past eight years, he has handled leasing for developer Steve Samuels, whose recent projects include Trilogy, an apartment and retail complex near Fenway Park, and another residential complex nearby on Boylston Street.

Jeremy Grossman recently directed real estate and leasing in New England for Federal Realty Investment Trust, which is building Assembly on the Mystic, a 66-acre development of stores, residences, and offices in Somerville.

“There is a clear reset button that’s been hit in the market,’’ he said. “Retailers that are healthy view this period as a tremendous opportunity to expand . . . and we intend to capitalize on that.’’

Casey Ross can be reached at cross@globe.com.