National Development underwent a major transition this year, turning to its next generation of leadership. But the Newton-based real estate firm has an important achievement to span both eras: an industry award for its nonprofit work.
The industry group Real Estate Finance Association is giving National Development its Swain Distinguished Service Award at its annual gala in the Seaport on Monday night. The award will honor National Development’s work over a four-decade span, including the 60 local nonprofits that the firm has worked with.
“It’s obviously a real honor to be recognized by your peers, and that’s really important to us,” said Brian Kavoogian, National Development’s CEO.
“I think we’re being recognized not only because of the capabilities of our firm and the range of our activities,” he added, “but I think we’re being selected for this award because of the character of our people in the incredible involvement we have in the overall Boston community.”
National Development works with a broad array of nonprofits, and it prioritizes healthcare, education and homelessness. Kavoogian said the involvement starts at the top — the executive team — as an example to the rest of the staff.
Kavoogian himself serves on the boards of Tufts Medical Center and Tufts Medicine, the Heading Home homelessness nonprofit and the state agency MassDevelopment, among others.
“The leaders of our firm take the time out to serve in a variety of nonprofit capacities. And I think that models the behavior for everyone in our organization,” he said.
“People understand it’s OK to go spend a couple of hours in a nonprofit board meeting. It’s okay to coach your kid’s Little League game. It’s OK to find time to commit to some philanthropic or nonprofit.”
A New Direction for National Development:
National Development underwent a leadership and ownership transition this year while it also pivots away from office and life sciences space.
Kavoogian first came to the Newton firm when a real estate private equity firm he helped found, Charles River Realty Investors, merged with National Development in 2019. He is now one of four partners at the firm, along with President Ed Marsteiner, chief investment officer Andrew Gallinaro and CFO Steve Kinsella.
Kavoogian was previously a managing partner before taking on the CEO role when Ted Tye, the last of the firm’s three co-founders, retired. Tye formed National Development four decades ago with Jack O’Neil and the late Tom Alperin.
National Development is best known for projects such as the Ink Block development in the South End, the Eli Lilly research and development building in Fort Point, and the Longwood Center research and lab building.
But the firm is pivoting.
National Development hasn’t bought an office building since 2016. The Longwood Center opened in 2014, and the Eli Lilly building, which opened last year, were originally planned for General Electric’s headquarters.
Today, the company is building a 108-unit apartment development in Wilmington slated to open next year and a 112-unit development that’ll open in Belmont in 2027.
More broadly, National Development is also focusing on senior living and branching out beyond the Boston area for the first time. It has partnered with Waltham’s Benchmark Senior Living to enter the Tri-State area for the first time with suburban living centers outside New York City.
Early this year, the two firms committed to building a new senior living center in New Jersey and buying another in New York. They added a second New Jersey community last month.
While National Development was already moving more into residential developments, the deal with Benchmark Senior Living enabled the firm to quickly get into senior living projects for which there is growing demand thanks to demographic trends.
“It was Benchmark, and these sites that they had tied up, that brought us to the New York metropolitan area,” Kavoogian said. “That allowed us to start on second or third base, rather than home plate.”
By Grant Welker
Boston Business Journal