Outside the Box: Pizza magnate Sal Lupoli expands the pie by investing in real estate
The Salvatore’s sale has enabled Sal Lupoli to refocus his energy on another expanding business not often associated with him: A real estate empire spreading throughout Boston’s northern suburbs and Gateway Cities.
Sal Lupoli
Title: Founder and CEO, Lupoli Cos. Inc.
Age: 49
Education:
Bachelor’s degree in business management, Northeastern University, 1989;
Master’s degree, business administration, MIT Sloan School of Management, 2012
Residence: Chelmsford
Sal Lupoli is best known for the popular Sal’s Pizza chain he started in 1990 and the five Salvatore’s fine-dining restaurants he launched in 2003.
But last autumn Lupoli unexpectedly decided to sell off his Salvatore’s restaurants to his longtime managers, while keeping the Sal’s Pizza Retail and Wholesale business under the Lupoli Cos. umbrella.
Now, the Salvatore’s sale has enabled Lupoli to refocus his energy on another expanding business not often associated with him: A real estate empire spreading throughout Boston’s northern suburbs and Gateway Cities.
Today, Lupoli owns nearly 4 million square feet of office, retail and residential space in Lawrence, Lowell, Haverhill and Andover. By far, his biggest holding is the mixed-use Riverwalk Properties, a collection of mostly abandoned mill buildings on 53 acres in Lawrence. It’s a property portfolio Lupoli started building in 2003.
All in, Lupoli’s holdings generate about $30 million in revenue, a number he expects to grow at an aggressive pace.
Lupoli recently spoke with Business Journal correspondent Jay Fitzgerald about his recent business moves, future real estate plans and personal interests.
What prompted you to sell Salvatore’s?
I thought it was a great opportunity to reward my employees after years of dedication. We got an offer from a big outside outfit to sell. I took a step back and decided to sell it to the people who meant the most to me.
Do you think you’re going to miss that aspect of the business?
No, I’m not going to miss it. As a matter of fact, it’s probably one of the proudest days of my life because they’re going to do a better job than me. Whenever you own and occupy anything, you’re going to do a better job at it. I’m thrilled that the business will continue to increase because they know what they’re doing and they’re going to do a better job than me.
You’re now heavily into real estate, something most people might not associate with you. How did you get involved in the field?
I got involved because at my very first (Sal’s Pizza) location I invested my whole life and my family’s life to make it successful. Then the owner of the property got foreclosed upon and I lost my lease and, in order to control my destiny, I vowed to never let that happen again.
What has been the hardest part of real estate for you to master?
I think the hardest part of real estate is being able to support the time it takes from when you start construction to when it’s fully leased. We don’t do spec building and we don’t do anything until we have a customer, whether it’s leasing or ground-up construction for one tenant. Just having patience is one of the most important things to have when you’re in the development business. Patience, make good decisions and don’t overextend yourself.
What do you like about real estate?
If you were to aggregate the most successful people in the world in business, you’ll probably find that most successful people are in real estate. It’s also a wonderful business to be in from the legacy perspective. Imagine being able to pass down real estate to your grandchildren’s grandchildren. If you’ve invested the right way and if they’re wonderful pieces of real estate that you’ve really done right, then they’ll pass the test of time.
What’s the most challenging real estate project you’ve handled to date?
I would have to say the acquisition of real estate in Lawrence — these abandoned mill buildings in a very challenging ZIP code, changing people’s perceptions of what the city of Lawrence is all about and letting them know they can find quality space in Lawrence that is comparable to anywhere in the state of Massachusetts. The hardest thing is getting past people’s memories of what Lawrence was 20 or 30 years ago.
How big do you see your real estate business getting, in terms of square footage or by other measures?
I don’t know why we can’t be a 10 million square foot organization in the next four to five years. We’re passionate. We believe in what the governor talks about in terms of helping Gateway cities. There’s 30 or so, give or take, Gateway cities in Massachusetts. We’re in many of those cities north of Boston — Lowell, Lawrence, Haverhill. We believe in those cities and there’s a lot of opportunities in Gateway cities. I firmly believe we’ll own 10 million square feet in the next four to five years.
When not working, what do you do to relax?
I believe in being active in your community. I’m a high school football coach. I’ve been a varsity (assistant defensive line) coach for Chelmsford High School for 11 years. I’m the former president of the Chelmsford Pop Warner and I’ve been affiliated with that program for eight years on a parallel basis with my high school coaching. I ran for and won a seat for school committee in Chelmsford, so I’m a school committee member. I’m also the chairman of the board of the Merrimack Valley Chamber of Commerce.
Do you have a hobby?
My hobby is I love being affiliated with sports. I love to see new sports programs pop up. It’s a big deal to me. I love to work out. I’m a big fitness guy.
What’s the last book you read – and did you like it and why?
I’ve recently read two books. First of all, “The Ultimate Gift” by Jim Stoval. That’s a great book. I just put that down not too long ago. The other book is “They Call Me Coach” by John Wooden. That’s probably one of my favorite books I’ve read in a while. I liked the books because they’re about lessons in life. I believe you get lessons in life from many people you look up to, whether it’s a coach or whether it’s a professor or whether it’s your parents.
What’s the last movie you saw – and did you like it and why?
Because of my schedule, I don’t have a lot of time to watch movies and, when I do, they’re usually at 2 o’clock in the morning. But I’m a fanatic when it comes to older movies. And when it comes to Christmas time, I love “It’s A Wonderful Life” with Jimmy Stewart. That’s like my life right there. I love that movie because I love everything it represents.
If you could go anywhere on a dream vacation, where would it be to and why?
My favorite part of the country, I would say, is southern California. That Orange County area, I love it. The weather is the same all the time. Coming from New England, I’ve had my share of winters. The cold goes right through me. I’ve never been one to enjoy outdoor sports in the winter time, skiing and snowmobiling. I love southern California. If I had my pick, it would be there. That’s my dream vacation.
