A FOCUS ON BRINGING REAL ESTATE INVESTORS PRECISELY WHAT THEY VALUE MOST: A bold, strategic point of view backed by solid leadership.
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A FOCUS ON BRINGING REAL ESTATE INVESTORS
PRECISELY WHAT THEY VALUE MOST:
A bold, strategic point of view backed by solid leadership.
NOVAYA REAL ESTATE VENTURES 2
DYNAMIC AND DIFFERENTIATED
Operating with a confidence that comes from years
of experience and proven results, Novaya excels as a
dynamic and trusted investment partner. We uncover
Novaya’s portfolio opportunities and unlock potential, revealing
insightful investments others may overlook.
currently encompasses
4 million square feet
of commercial and LEADING WITH EXPERTISE
residential real estate With combined expertise in institutional asset
management, private equity, real estate law, and
venture capital, coupled with our extensive on-the-
ground operating experience, Novaya Real Estate
Ventures is able “to see over the horizon” for the
benefit of our clients.
NIMBLE NEVER WAITS
Our investment philosophy centers upon the following basic tenets:
VISIONARY TACTILE AGILE
Leveraging the synergies of Acting upon strategies with a Rotating quickly into areas
our deep senior combination of decisiveness where we see opportunity, we
management team, we wield and discipline, we see market utilize an agile approach. With
the advantage of multiple trends early on and are quick Novaya, investors find value
perspectives, seeing clear of to capitalize on behalf of only on the ground operators
market complexities to ensure our clients. can deliver - across multiple
superior performance. asset types.
NOVAYA REAL ESTATE VENTURES 3
PARTNER WITH TRUST
At Novaya, we believe every great deal is built on a foundation of trust. Ours is earned and re-
earned through the integrity of our relationships, the balanced perspectives shared by a senior
management team and ultimately by the performance of the projects we present.
JAMES M. ALDEN | Founding Principal
As Founding Principal, Jim spearheads Novaya’s private capital formation,
investor relations and reporting and tax practices. Jim brings over twenty-
five (25) years of demonstrated expertise in real estate transacting at
Copley Management and Boston Financial Group. Most recently, as
Managing Partner of Taurus Capital Funding, LLC, Jim was responsible for
Taurus Investment Holdings U.S. private investment offerings and broker-
dealer activities. Jim is active as a board member of Carroll School and the
DeCordova Museum.
Education: BA, Brown University, 1981
MS, MIT Center for Real Estate, 1993
PETER CARBONE III, ESQ | Principal and CIO
Peter manages Novaya’s Investment Committee and is responsible for
sourcing and structuring acquisitions around New England. In addition, Peter
guides the permitting process for Novaya’s complex mixed-use developments.
Peter has permitted and developed in excess of twenty-five (25) million square
feet in the New England area through lengthy stints at Riemer & Braunstein, LP
and National Development. As Managing Partner of Taurus New England,
Peter purchased and managed over $1 billion of assets. Peter is an active
supporter of the Boys & Girls Club of Woburn.
Education: BS, Accounting, Business, Carroll School of Management,
Boston College, 1987
JD, Suffolk University, 1993
NOVAYA REAL ESTATE VENTURES 4
SCOTT R. TULLY | Managing Principal
Scott Tully is Novaya’s Managing Principal and Co-CIO. In his role, Scott
oversees Novaya’s institutional capital relationships and forms overall
investment and disposition strategy. Additionally, Scott directs thematic asset
aggregation programs, bridging the appetite of our private investors and
institutions. With over twenty-five (25) years of institutional real estate and
capital markets experience at Bank of Boston, AEW Capital Management
and Taurus Capital Markets, Scott has a proven track record in high volume
transacting and fund formation and is a trusted venture partner in institutional
circles. Scott is a founding board member for the non-profit Team Impact.
Education: BA, Economics and Political Science, Yale University, 1987
MBA, Boston University Graduate School of Management, 2001
MA, International Affairs, Fletcher School of Law & Diplomacy,
Tufts University, 2010
JEFFREY R. THEOBALD | Principal and COO
In his role as COO, Jeff is responsible for directing overall activities and
management of the firm. He also oversees Novaya’s expansion into the Mid-
Atlantic and Southeast and manages the sourcing of industrial and medical
office building investments in New England. Jeff has extensive finance and
real estate experience through stints at State Street Bank and Trust, Taurus
Investment Holdings and Taurus Industrial Development. During his career, he
has developed over 2 million square feet of warehouse/distribution space and
has transacted over $1.5 billion of commercial and residential real estate in
the US, Canada, Argentina and Turkey.
Education: BA, International Relations, Tufts University, 2003
MBA, summa cum laude, F.W. Olin School of Business,
Babson College, 2011
NOVAYA REAL ESTATE VENTURES 5
OUR PORTFOLIO SPEAKS FOR ITSELF
Novaya has As tenured investment experts, Novaya proactively
assesses and acts across asset categories, with an
transacted in agile investment approach that finds reward in diverse
investment categories from industrial, flex and office, to
over $1.2 billion urban mixed use and residential. Since 2011, Novaya has
in real estate offered insightful opportunities ranging from short-term
value-add projects to long-term multiple-oriented deals,
always keeping preservation of capital paramount.
Novaya does not fit comfortably into the traditional
real estate boxes of “core”, “core-plus”, or “high
yield”. We are engaged by our investors to identify
the optimal risk-adjusted returns as one makes out
the risk return spectrum for real estate.
PORTFOLIO METRICS
PROPERTY TYPE RENTABLE SQUARE FEET PROJECT EQUITY (USD)
INDUSTRIAL WAREHOUSE 2.4MM SF $28.0 MM
FLEX INDUSTRIAL 611K SF $34.7MM
OFFICE 391K SF $12.2MM
RESIDENTIAL/DEVELOPEMENT 359K SF $13.9MM
MIXED USE 151K SF $4.7MM
RETAIL 36K SF $1.4MM
Total Assets
4.0MM SF $95.2MM
Under Management
NOVAYA REAL ESTATE VENTURES 6
LENDERS
NOVAYA REAL ESTATE VENTURES 7
INSTITUTIONAL PARTNERS
ON BEHALF OF
ON BEHALF OF
NOVAYA REAL ESTATE VENTURES 8
INDUSTRIAL AGGREGATION PROGRAM
In 2015, Novaya began an acquisition program fast becoming a more important value driver
to take advantage of what it saw as a pricing than the size and efficiency of the newer Class
arbitrage between Class A and Class B A product located further out from the urban
industrial properties in the Northeast and Mid- core. Yet the Class B product was still largely
Atlantic regions. Specifically, the fundamentals priced under the old paradigm.
for warehouse pricing were rapidly changing.
Traditional metrics like centrally located, large The program targeted well located Class B
footprint, 30' + clear height facilities were giving industrial assets, which in most cases had
way to smaller "last mile" locations to vacancy or short remaining term on their
accommodate the delivery expectations of leases, taking advantage of rapidly increasing
the new online consumer. Novaya observed demand/rents in the category. Once
that in most Northeast and Mid-Atlantic stabilized with new market rate leases and
markets, with proximity to over 60% of the U.S. minor capital upgrades, individual assets
population, affordable land for new industrial were aggregated into larger diversified pools
development was relatively scarce. Moreover, and recapitalized with institutional investors
the location of the older Class B product was seeking long term stable cash flow.
NOVAYA REAL ESTATE VENTURES 9
NOVAYA OPEN-END FUND
In October 2020, Novaya launched the metropolitan areas. In the Northeast, this trend
Novaya Open-End Fund (the “Fund”), has been exacerbated by a shrinking urban
recognizing the opportunity to create a long- land supply. Flex space has experienced a
term, lower-risk, and current income focused similar boost in demand due to recent
investment to offer investors alongside its onshoring (bringing certain assembly and
traditional single asset, value-add business. testing activities back to the U.S. from abroad)
Though Novaya had been planning a fund of R&D and light manufacturing, particularly
product long before the COVID-19 crisis and near urban areas where space is limited and
the Fund is by no means a strictly pandemic- educated work force is available. The
oriented product, Novaya set up the Fund to pandemic only accelerated these trends.
be poised to perform particularly well in the
current economic environment through With a heavy co-investment from Novaya, the
targeted investment in Class A and B industrial Fund is intended to drive generational wealth
warehouse and flex/R&D properties. creation for investor and sponsor alike through
targeting industrial assets that exhibit high
With the rise of same-day shipping and e- occupancy, strong credit, and a significant
commerce Novaya recognized early on the weighted averaged lease term; business plans
dramatic increase in demand for industrial that will be suited to perform through
space with close proximity to major complete market cycles.
NOVAYA REAL ESTATE VENTURES 10
MIXED USE DEVELOPMENT
Novaya, in a joint venture with Cresset 18,000 units of new residential development. In
Development, acquired 10.5 acres of addition, it is the new home of Partners
development land in the Assembly Square area Healthcare’s 828,000 square foot Corporate
of Somerville, MA. Similar to the growth South Headquarters.
Boston’s Seaport District has experienced over
the past ten years, Assembly Square is rapidly In a directly negotiated deal with the seller, the
becoming the next infill destination for Boston’s property was acquired in two phases, the first
continued expansion. Due in large part to its of which included approximately 5.0 acres of
juxtaposition to Kendall Square, Cambridge, land and a fully occupied, 162,000 square foot
direct access to Interstate 93, the MBTA Orange office building. The second phase of
Line and available parking, Assembly Square approximately 5.5 acres was acquired subject
has become the location of choice for to Novaya and Cresset obtaining the desired
millennials seeking to live in a dynamic urban permits, which was accomplished in the Fall of
environment, one subway stop from Boston’s 2020. As configured under the approved
Financial District. As such, Assembly Square has master plan (branded XMBLY), the project will
attracted over 1.8 million square feet of new encompass over 1 million square feet of new
development over the past ten years including development including 520 units of multi-family
a rich variety of restaurants, retail, housing, a 160-room hotel, 490,000 square feet
entertainment and beautifully landscaped of office/lab space and a 140-unit high-rise
parks along the waterfront, amenitizing over condominium building.NOVAYA REAL ESTATE VENTURES 11
HIGH STREET
MIXED USE
AGGREGATION
Novaya, in a joint venture with The State of
Florida and its local operating partner Urban
Meritage (the “Venture”), has embarked on
a $300 million, third generation program to
acquire and redevelop mixed use assets on
and proximate to Newbury Street, Boston’s
premier retail district. Newbury Street is often
compared to Rodeo Drive in Los Angeles and
is considered the shopping mecca of
downtown Boston. While predominately
known for its retail shops, it also consists of 800
units of multi-family housing (condo and
rentals) and over 200 office tenants.
As with the two predecessor programs, the
current strategy seeks to maintain the unique
boutique character of the street while
creating value through scale and operational
efficiencies. The opportunity lies in the highly
fragmented ownership on the street.
Additionally, many of the target buildings
have been owned by families for two or more
generations and have received minimal
improvements. The Venture is in the process of
optimizing each of the 14 individual assets
acquired to date through a comprehensive
redevelopment program, modernizing
building systems and tenant layouts for the
optimal tenant mix. Through aggregation,
standardization of leases and modernization
of the physical assets, the Venture seeks to
create a portfolio of scale, diversity and
quality more appealing to institutional
ownership.NOVAYA REAL ESTATE VENTURES 12
OFF-MARKET
FLEX PORTFOLIO
Novaya, in a joint venture with AIG Global
Real Estate, acquired a 9-building, industrial/
flex portfolio totaling 699,349 square feet in
Billerica and Wilmington, Massachusetts, and
Londonderry, New Hampshire. Novaya was
awarded the deal through a creative,
structured transaction involving a phased
take down, a convertible ground lease and
the sourcing of a Class A, multi-family
exchange property to assist with the Seller’s
unique tax situation.
The opportunity resides in the growing scarcity
of quality, well located industrial/flex space in
the Greater Boston market. Novaya
partnered with AIG because the company
was seeking to acquire stable, intermediate
term (7-10 years), higher yielding investments.
The investment offers further upside through
leasing vacancy and rolling up existing rents
as leases expire, which are estimated to be
16% below market on average. Subsequent
to signing the purchase and sale agreement,
Novaya executed leases on over 100,000
square feet of new or renewing space, at
rents above underwritten assumptions.
265 Franklin Street, Suite 1001
Boston, MA 02110
P. 617.391.3590
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