Fairmount Properties Principals Randy Ruttenberg and Adam Fishman have signed a long term partnership agreement with industry veteran Stephen Karp, founder of New England Development and his partners Steve Fischman and Greg Sullivan to develop mixed use retail focused real estate projects on and around college and university campuses throughout North America. Joining them as a partner in this venture will be Vincent Costantini, founding principal of Boston-based Roseview Group. New Boston Fund and its principals Jerry and Jim Rappaport have committed to provide up to $200 million toward campus related projects as a first round of funding to the venture known as Fairmount University Realty Trust (FURT).

Prior to undertaking their first university development in 2001, Messers Ruttenberg and Fishman had been researching this niche sector for two years prior both independently and with The Growth Group- a 100 person national consulting firm focused solely on helping higher education institutions across a broad spectrum. Forty percent of the Growth Group consultant base is comprised of former college and university presidents with the remainder having held senior administration positions. A 10-year exclusive agreement between FURT and the Growth Group calls for the firm to identify and make introductions to college and universities looking to build strong campus gateways and exciting new mixed use venues through the creation of new housing, retail and entertainment options not currently available in the marketplace.

Together, Fairmount Properties and the Growth Group have vetted over 350 schools and the towns in which they are situated across a wide range of criteria for the purpose of underwriting and privatization. "These guys have really done their homework," said Mr. Karp referring to the information gathered over the past 24 months. “These traditional developers have been able to access institutions typically marked by extremely high barriers of entry on both their own gumption and through their relationship with the Growth Group. We are very excited about the potential of this particular market segment and look forward to bringing our expertise and resources to this venture.”

FURT is driven by our broad experience in mixed-use development and the desire to move into markets influenced by a college or university presence. These developments are stimulated by our deep-rooted relationships with the nation's most sought-after retailers, our unique and proprietary national strategic partnerships and our experience and eagerness to work collaboratively within the context of public/private relationships.

Our belief in this market segment emanates from the university as an anchor for catalytic growth. Oftentimes high-quality mixed-use developments, which are typically "unanchored" by most traditional industry definitions, strongly benefit from nearby adjacent uses that regularly create significant visits for reasons other than shopping or dining. These "non-retail demand generators" as we refer to them, drive continuous traffic throughout the day in and around shopping/living districts and increase the vitality and long term viability of these areas. Examples of these "new anchors" may include a city hall, post office, cultural arts center, or regional library. A college or university is the quintessential example of a non-retail demand generator, serving as an anchor by attracting students, faculty, administrative staff, visitors, researchers and their respective families on a regular basis. These institutions have a long-term presence within the marketplace, are resilient, and drive a highly coveted "creative class" consumer base.

  Back Top