Joshua Solomon’s first investment was more than two decades ago. At the age of 21, he and a friend purchased and flipped a two-family home in South Boston, turning a profit of $20,000.
“Then I proceeded to lose it all investing in the stock market,” Solomon said wryly. “I realized then that real estate was a place where I performed better.”
That’s an understatement. Now 43, Solomon is co-founder of the DSF Group, a real estate investment firm that oversees approximately $1.6 billion in commercial real estate investments from Boston to Washington, D.C.
A longtime baseball fan, Solomon and siblings Jennifer Goorno and Jim Solmon purchased the New Britain Rock Cats minor league baseball team last March. It’s an investment for the family as well as a labor of love. Their father Art owns two minor league baseball teams — Class A Bowling Green Hot Rods and the Double A New Hampshire Fisher Cats. The Double AA Rock Cats, an affiliate of the Minnesota Twins, are a nice complement to the family’s baseball portfolio.
“My family has a love of baseball; and to turn it into something where you can make it an investment is unique,” said Solomon, sitting in the Rock Cat’s dugout before a recent game. “I think minor league baseball is a strong investment because there are a limited number of minor league baseball games and the quality of entertainment is tremendous, particularly when you are partnering with an organization like the Twins. There is a real shortage of quality, affordable entertainment. To be able to fill that void in a market like the Greater Hartford area is tremendous.”
Solomon, married and the father of four, lives in suburban Boston. As his slight accent will attest, he is a native of “Bah-stan” and is a longtime Red Sox fan. He earned his Master’s in Business Administration from the University of Wisconsin at Madison, where his focus was real estate and urban land economics. Prior to grad school, Solomon worked in the financial markets in Los Angeles and New York. As a banker, he saw people he was lending money to become extremely successful investing in real estate. But Solomon wanted the MBA before branching out on his own.
“I wanted to have a better understanding of the capital markets and how to access capital,” he said. “To do that there was a need and level of sophistication that you’re able to achieve in business school. I knew I had a good innate sense of the business.”
In 2000, The DSF Group was founded with Solomon’s father and two other partners. The firm seeks to secure, invest and oversee “well-capitalized and well managed assets that can provide a long-term return.” Large multi-family units and “high quality” high rise apartments are the core of DSF’s portfolio.
DSF is currently engaged in several major projects, including a 750-apartment development (with 50,000 square feet of retail on the ground floor) in the Washington, D.C. area, and a 125-unit apartment complex in White Plains, NY, across from a rail station.
There are many parallels between real estate investing and owning a minor league baseball team.
First, says Solomon, is customer service. “Whether it’s a fan who comes to one of your baseball games or a resident who lives in one of your apartments, they need to feel well taken care of — and that they are getting value for their investment,” he said. “Customer service is everything and doing the little things to make people feel comfortable and welcome.”
The New Britain franchise has been in business since 1973, when it played in Bristol and was owned by Joe Buzas. He sold the team to Bill Dowling in 1999 for $6.5 million.
The sale price of the recent transaction was not disclosed. Under Dowling’s watch, the team’s community engagement grew and attendance increased. The Rock Cats averaged 5,867 in attendance last year, a franchise record and third in the Eastern League. A family of four can watch the game for about $45.
The Rock Cats, with a $4 million operating budget, are widely regarded in baseball circles as a model minor league franchise. On July 10, New Britain will host the Eastern League All Star game, a signature event that has the organization very excited. It employs 20 full-time employees and about 50 seasonal part-time workers.
The players are under contract to — and paid by — the Minnesota Twins. Past stars include Ellis Burks and David Ortiz, when the New Britain team was under the Red Sox affiliation several years ago. Former American League Most Valuable Player Joe Mauer of the Twins is also a Rock Cats’ alum. The Twins’ top prospect, 20-year-old third baseman Miguel Sano was recently promoted to New Britain. Seeing the 6-3, 195-pound infielder pound balls during batting practice it is clear he has star potential.
John Willi, who was with the Cats as an executive before last year’s transaction, had been named president and general manager of the club. But he is no longer with the organization. Under the provisions of last year’s transaction, Dowling is being retained as a consultant.
Solomon says the key to any successful business is “you have to hire good people and empower them. … Expectations have to be clear.”
The bar is set high for the Rock Cats. The new owners want the 6,147-seat stadium sold out regularly, fans who reflect the ethnic and socio demographic make-up of the Greater Hartford region, and to “raise the level of creativity and general wackiness” at the games, with special theme nights.
The Cats may be under new ownership, but when it comes to competing for wins and a loyal following, it’s still game on.
Stan Simpson is host of “The Stan Simpson Show” (www.Foxct.com/stan and Saturdays, 6:30 a.m., on FoxCT). His ‘Faces in Business’ column appears monthly. Know someone who’d make a good subject for ‘Faces in Business’? Contact Simpson at stansimpson@comcast.net
