David Parisier
Managing Director and Principal, Paredim Partners
Age: 57
Industry experience: 35 years
Paredim Partners’ recent $52.5 million purchase of the 194-unit Taft apartments overlooking New Haven Green is the latest illustration of founder David Parisier’s confidence in the strength of the Elm City’s economy and multifamily market. Parisier spent 15 years in brokerage, asset management and acquisitions at commercial real estate companies including Equitable Real Estate, S.L. Green and Capital Properties Associates before founding Paredim Partners in 2002. The Elmsford, New York firm has acquired, repositioned and converted more than 3,000 apartments as part of its value-add strategy.
Q: What’s the history of Paredim Partners?
A: At Capital Properties, I really got into investment and operating and some development, and got introduced to Connecticut. Then I started what is now Paredim Partners, building homes in Greenwich, and then we bought our first [multifamily] property in Woodbury, and then Bloomfield and New Haven and West Haven, and fell in love with the New Haven market and the demographics of the market. It’s not just Yale. It’s Quinnipiac and six or seven other good schools in the area that turn out a very educated workforce, as we saw New Haven transitioning away from an industrial manufacturing base to meds and eds with some law firms and finance and other good industries.
Q: What was your first acquisition in New Haven?
A: It was on Eastern Street, near the border of East Haven. We bought the 84-unit Brook Hollow, which we still own, and months later we bought another 104 units down the block on Clifton Street, the Fairways. This was real workforce housing that was in a tremendous state of disrepair, and we upgraded it over a 12-month period and gave people an amazing environment. If you look at all the communities we’ve acquired over 20 years, they all have a common thread. We’ve upgraded them significantly and provide the best services anywhere. You could be a hospital nurse or school worker, and you would get the best finishes and a 24-hour on-call maintenance service.
Q: How long is the firm’s typical investment horizon for a property?
A: There is not a typical hold time for us. We have several different capital sources. A majority of our projects are funded with a combination of private equity and from high net worth and family office investors, along with debt from various institutions, and we do a lot of business with Connecticut banks. We will refinance over time and use the proceeds to continue to do upgrades, modernize and add amenities. We’re not so much a developer as a redeveloper. If it’s not an as-of-right process, we probably don’t get involved at all. The only time we’ve ever bought a piece of land was a building in Milford that was in the middle of a 400-unit portfolio with 10 buildings, and we saw the opportunity to buy a one-acre parcel that we felt we had to be the owner.
Q: How do construction cost increases affect your upcoming projects such as the conversion of the Hawthorn Suites by Wyndham in Manchester into 110 apartments?
A: We’re engaged in a number of redevelopment projects right now. We acquired the hotel property in Manchester at the end of last year and achieved the rezoning prior to the closing. Now we’re in the process of redeveloping the property to be a class A multifamily property. We’re seeing just crazy escalation of costs: roofing, exterior materials, steel. Wood has come down, but not a lot. That’s one of the reasons we’d rather be redevelopers than developers. Most of our projects have cash flow no matter what. The wonderful thing about that property was it was an early-generation Marriott extended-stay, so it was actually furnished with full kitchens. It’s going to be a mix of studios, one- and two-bedrooms and two-bedrooms with two baths. The sizes were large for a hotel because they were true extended-stay units. We’ve started pre-leasing and will deliver occupancy at the end of July.
Q: What are your plans for the recently-acquired Taft property in New Haven and what is your outlook for the city’s multifamily market?
A: Our plan is to do a significant cosmetic upgrade to the common areas. Roughly 50 percent of the units were renovated by the prior owner, and we will address the remaining units that can be updated to today’s class A standards. We are constantly running market studies and actively seeking acquisition opportunities in New Haven. We saw almost 20 percent rent growth in the New Haven metro in 2021, and we’re seeing 5 to 7 percent on a quarterly basis. You’ve got biotech delivered by Winstanley Enterprises [at 101 College St.] and more in Science Park. We don’t see a shortage of eds and meds bodies to rent all of these apartments. We also love our Milford and West Haven presence. Southern New Haven County has a great employment market.
Parisier’s Five Favorite Activities:
- Traveling with his wife and sons to great new places
- Skiing or cycling anywhere, anytime, any temperature
- Getting to a Yankees, Rangers or Giants game
- A day on the lake at his weekend home in Massachusetts
- A sliced steak, fries and tomato onion salad at Peter Luger
