Gilbane Development Company Hires James Patchett as President and CEO

One of America’s oldest construction firms has hired a commercial real estate industry veteran to lead its development division into the future. 

Gilbane Development Company — a firm with $8.5 billion worth of student housing, affordable housing, and multifamily properties under its portfolio— has hired James Patchett as its new president and CEO, Commercial Observer can first report. 

Patchett takes control of the development arm of Gilbane, the 155-year old, family-owned, construction and development firm that is responsible for building the Vietnam Veterans Memorial and the World War II Memorial in Washington D.C., and O’Hare International Airport in Chicago

Patchett succeeds Edward Broderick as CEO of the firm’s development arm, while Adam Jelen will continue to lead Gilbane Building Company as its president and CEO. Broderick now moves into the role as CEO of Gilbane the parent company of both arms. 

“The development company is somewhat lesser known, but it’s actually been around for over 50 years, and is the top ten student housing player, is a top 20 multifamily player with a national platform, and is especially well known for its public private partnerships,” Patchett told CO. “The development company has built this reputation as being a firm that says what we say we’re going to do.”

Patchett comes over from McKinsey & Company, where he served as a partner in the firm’s real estate division, and carries with him public sector experience, as he spent four years as president and CEO of the New York City Economic Development Corporation and three years as chief of staff to former New York Mayor Bill de Blasio. The portfolio he oversaw at the EDC spanned 60 million square feet and encompassed $10 billion in CRE development. 

Patchett also has experience leading A&E Real Estate as its CEO and serving as the vice president of Goldman Sachs Urban Investment Group. 

Patchett told CO that Gilbane’s comfort in building and developing through public-private partnerships “mattered a lot” in his decision to join the firm from McKinskey, particularly Gilbane’s long track-record of successfully developing affordable and mixed-use housing across different American cities. 

“Being with an organization that I know has that brand, and is genuine about [its reputation], is really meaningful,” he said. “And I know it will continue to produce a lot of value for our partners.”

In a statement, Broderick praised Patchett’s “collaborative approach,” and noted that he has led investment and development in different cities across the country. 

“We are confident that James’ leadership will drive substantial growth while maintaining our core values and will build on Gilbane’s role as an innovative and trusted partner in reshaping communities across the country,” said Broderick. 

Patchett highlighted housing as Gilbane Development’s single largest growth area. He noted that the firm is aided by having an in-house construction firm work side-by-side with the development company, and highlighted his own vast experience in the public sector as an asset when it comes to pushing different types of residential housing deals across the finish line. 

“Reputation and relationships are the most important factor for success,” he said, noting that student housing developments require relationships with universities, while public sector housing requires zoning approval from elected officials, and market-rate housing requires buy-ins from local communities during the entitlement process. 

“You can’t get by very long in this business by saying one thing and doing another – that gets around,” he said. “When you go to a community board, or a local zoning board, and say we’re going to deliver XYZ to you, and if you deliver it again and again, that’s a reputation that stays with you. And if you do the opposite, then you won’t get very far in this business, especially in a national business.” 

Gilbane Development currently has $4 billion under development through public private partnerships, according to Patchett. Some of the projects he listed include delivering six new high schools for over 8,000 students in Prince George’s County, Maryland; a $400 million mixed-use affordable housing community across two sites in Washington, D.C., near Metro stations; and partnering with CBRE Investment Management on a $500 million strategic joint-venture to build student housing across the U.S. 

Patchett praised the ability of Gilbane Development Company to partner seamlessly with Gilbane Building Company on various public-private partnerships, no matter the residential asset class. 

“What our partners have found, historically, is that it’s really helpful to have a construction partner, because when you’re a public institution, maybe you don’t have a ton of capacity to be managing a large-scale construction project yourself,” he said. “Having a developer who can be your partner, and help you get that done, is actually way more cost-efficient in the long run and also results in a better facility.”

Brian Pascus can be reached at bpascus@commercialobserver.com