Matthew Gottesdiener
CEO, Northland Investments
Age: 31
Industry experience: 10 years
Five years after joining the family firm Northland Investments as chief investment officer, Matthew Gottesdiener is taking over the multifamily investor’s leadership role in the CEO’s office. His father and the former CEO-turned-chairman, Larry Gottesdiener, is a New London native who made big investments in Hartford developments including the 2006 completion of the 36-story Hartford 21 luxury apartment tower. The firm’s Nutmeg State holdings include the Bigelow Commons mill conversion in Enfield and The Pavilions apartment community in Manchester. Newton, Massachusetts-based Northland also has been in negotiations with the Capital Region Development Authority on a potential sale of the XL Center in Hartford, where the CRDA has proposed a $100 million update to the downtown arena. The firm is expanding its national portfolio with the recent entry into new markets in the Sunbelt and southwestern states.
Q: How long has the succession plan been in place and why was this the right time for a change of leadership?
A: I joined the firm five years ago and my father had a concrete set of goals for improving the fundamental quality of the portfolio by selling some of the older assets and adding more core and luxury properties, and a culture that would be more transparent and supportive and put our tenants, employees and investors first. During the pandemic, we took a look at how we’ve done and what the structure was for continued success. That began in the summer and was about each of us focusing on where we could make the most impact.
Q: What’s the average age of the properties in the portfolio?
A: When I joined, it was 1990 and currently it’s 2003. We fundamentally have two core investment strategies: we have the business we’ve done since 1991: buying predominantly garden-style suburban assets that are undercapitalized or undermanaged, with a 10-to-20-year hold horizon, and transforming the community. The complementary piece that’s grown into half of our building is buying best-in-class, class A-located infill assets, predominantly luxury, with a 20-to-50-year hold horizon. We’re currently investing our eighth fund, and will acquire $400 million to $500 million, investing $100 million of equity.
Q: What’s Northland’s strategy on the development side?
A: In the early 2000s, we began to slowly build a careful boutique development business, focusing on New England only, that would use almost exclusively our own capital. One of the most foundational aspects of Northland’s DNA is: the commitment has always been to be our largest limited partnership investor and never be less than 20 percent of the equity in a fund or investment. Development takes that to another level. We had to build a competency and it’s your own capital you’re risking. One of my goals will be bridging this patient boutique New England development niche with our national acquisition business.
Q: Has there been any progress in talks with the CRDA about the potential sale of the XL Center in Hartford?
A: Nothing that you haven’t read. If I had something, I’d tell you. In terms of our outlook for Hartford, we’re a committed long-term owner of Hartford 21, which we consider to be one of the greatest residential high-rises in the country. We built that with a 50-year commitment.
Q: As the town of Enfield plans a new Hartford line stop in Thompsonville, how has the Bigelow Commons loft apartments been performing?
A: We’ve invested more than $10 million in that community over 20-plus years of ownership. That’s a great example of unrelenting commitment to neighborhoods. We’ve heard a lot about the train station for many years, and we’re hopeful about the progress there. There’s been a bit of a post-COVID flight from New York City and that’s bolstered single-family [market] if not rental demand. We have a strong connection to Connecticut personally, where Larry grew up and where I met my wife. Some of the biggest investments in our history have been attempts to invest in Hartford, and our commitment is unwavering. We believe long-term in Connecticut and are looking to support the revitalization of Hartford and Connecticut in general.
Q: What’s some of the most useful advice you’ve received in real estate?
A: Have a commitment to your core principals, do what you say and make decisions for the long term. That’s the advice I’ve been given and how I hope to lead Northland in the coming decades.
Gottesdiener’s Top 5 TV Shows:
- The Marvelous Mrs. Maisel
- The Wire
- La Casa de Papel
- The West Wing
- The Sopranos
