As part of the breakup agreement, Marcus Partners will operate 300,000-sf of product in Florida purchased in the Davis Marcus era, while an affiliate of the Davis Cos. will take care of the properties still under that wing in Connecticut and Massachusetts. Marcus sees niche development in select Connecticut communities and value-add projects, or those in need of repositioning, as the focus on that state, similar to the approach planned in Massachusetts.

As for the hometown scene, Marcus is upbeat about Massachusetts even though tenants seem to have caught a massive case of cold feet in the first half of 2008. "My feeling is that it will be slow longer than just a couple of months," he opines, relaying that rental rates for office space have "flattened" and predicting demand could stagnate into early 2009. But restricted supply and growth in core segments, such as life sciences and high-tech, are reasons to believe the region will rebound sooner than others, according to the developer. "I actually think Greater Boston is going to pull through this," he says. "The good companies are doing really well and the fundamentals are quite healthy."

Davis concurs, calling the tenant base "very sound and solid" overall. "Right now, it just seems that people are waiting for the other shoe to drop," he says in assessing the recent dip. Evidenced by the loan purchase--one he explains was not secured as part of a "loan-to-own" strategy--Davis says his company is also angling to take advantage of deals emerging from the difficult environment. "As in past real estate cycles, we're trying to stay ahead of the curve and to adjust our investment strategy to meet the challenges and the opportunities that the market presents us," he says. The loan package, for example, was acquired at favorable terms and using third party financing that will allow the firm to turn a profit holding the paper. The collateral is located in Georgia, Louisiana, Ohio, South Carolina and Virginia.

The Davis Cos. is also stocked with 600,000 sf of prime properties acquired before Marcus came on board. Those include the firm's headquarters at One Appleton St. in Boston, 200 High St. in the city's Financial District, plus a building in Cambridge's Porter Square and another in Kendall Square, 201 Broadway. Both Marcus and Davis also stress that their parting was amicable, even to the point that they may do joint ventures in the future. "Paul and I have had an extraordinary partnership and many great successes over the last 15 years," says Davis. "We remain friends and I wish him well."