In Southern Maine, we have an inventory problem. An inventory shortage, that is. During the recovery, there has been a steady flight to quality in all sectors including office, retail and, most strikingly, the industrial market. For the seventh consecutive year, the Greater Portland industrial market vacancy rate has dropped. We are now hovering close to a 2 percent total vacancy, which is grossly inhibiting end-users and growth. Throughout 2017, we worked with buyers and tenants that struggle to find suitable relocation and growth opportunities. Multiple offers and off-market sales have become commonplace, which frustrates end-users. We are coaching our clients to remain patient, flexible and communicative in this fluid and competitive market. Accordingly, the limited inventory drastically increased both lease rates and sales pricing for industrial style space. Sale price trends, in particular, deserve a closer look. In 2011, at the tail end of the recession, Class A and B industrial buildings were selling in the $40-per-square-foot range. Sales were almost exclusively going to owner-user businesses who were bullish enough to bet the economy would turn. Today, those businesses are competing with a smaller inventory pool, and against investors looking to diversify their portfolios. Quality industrial buildings are now …
As 2018 begins, it appears that the Greater Portland office market has continued to hold on to low vacancy rates as supply remains low across both Class A and Class B buildings throughout the market. CBRE/The Boulos Co is conducting its annual market outlook; it will be exciting to see the results, which we release in January. I anticipate the numbers to show a steady or slight decrease in vacancy rates across all submarkets but also show a much lower absorption rate, as momentum has appeared to slow down over the last 18 months. Transaction volume is trending far lower than in previous years and could possibly be the lowest number of transactions in the last seven years. However, there were a number a relatively large transactions completed over the last six months that will have a larger impact on the overall vacancy rate than simple transact ion volume. And we must consider that the small number of leases signed could also be due in part to limited supply. The Downtown Portland Class A office market, in particular, continues to operate at historically low vacancy rates. Over the last five years, there has been a steady decline in Class A …
PORTLAND, MAINE — Cardente Real Estate has arranged the sale of a restaurant property located at 476 Stevens Ave. in Portland. Rock Properties sold the property to 476 Stevens Ave LLC for $1.1 million. Siano’s Pizzeria formerly occupied the 4,091-square-foot restaurant building. Cheri Bonawitz of Cardente Real Estate represented the seller, while Mike Anderson of Malone Commercial Brokers represented the buyer in the deal.
PORTLAND, MAINE — Lancaster Pollard has arranged $15.3 million in bridge financing for Portland Center for Assisted Living, an 85-unit assisted living and memory care community in Portland. The borrower is First Atlantic Healthcare Corp., which sought to refinance existing debt. The financing will also fund repairs and reserves for the property, which was built in 1964. Aaron Becker led the transaction for Lancaster Pollard.
BANGOR, MAINE — Cardente Real Estate has arranged the sale of a mixed-use property and adjacent parking garage located at 105 Main St. in Bangor. Brick & Mortar Holding Group sold the asset to an undisclosed buyer for $1.9 million. The property features a total of 25 retail and apartment units. Mike Cobb of Cardente Real Estate represented the seller and buyer in the deal.
SACO, MAINE — An entity operated by Charterhouse Development Corp. has acquired a retail property located at 461 Maine St. in Saco. Spirit RA Saco ME LLC sold the property for $3 million. Rite Aid occupies the 11,180-square-foot retail property. John Gendron of Gendron Commercial Brokers negotiated the acquisition.
SACO, MAINE — Cardente Real Estate has arranged the sale of an office building located at 42 Industrial Park Road in Saco. Ohio Mutual Insurance Co. sold the property to 42 IPR LLC for $2.1 million. The building features 13,874 square feet of Class A office space. Greg Perry of Cardente Real Estate represented the seller, while Andrew Ingalls of Malone Commercial Brokers represented the buyer in the deal.
PORTLAND, MAINE — HFF has brokered the sale of Residence Inn Portland Downtown/Waterfront hotel, located at 145 Fore St. in downtown Portland. Norwich Partners sold the 179-suite property for an undisclosed price. Completed in 2009, the five-story property features suites fully equipped kitchens, the Shipyard Lounge, 1,235 square feet of event space, an outdoor courtyard, a business center, a fitness center, an indoor pool and complimentary hot breakfast. Denny Meikleham, Alan Suzuki and Matthew Enright of HFF represented the seller and procured the undisclosed buyer. The hotel was purchased unencumbered of management.
AUBURN, MAINE — Cardente Real Estate has arranged the sale of a warehouse building located at 279 Washington St. South in Auburn. Maurice Eastman and Lauren Eastman sold the 5,500-square-foot property to an undisclosed buyer. Cheri Bonawitz of Cardente Real Estate represented the seller, while Greg Perry, also of Cardente Real Estate, represented the buyer in the transaction.
BRUNSWICK AND TOPSHAM, MAINE — A joint venture between Presidium Group and Portland, Maine-based Helios has acquired a 407-unit multifamily portfolio in the Mid-Coast area of Maine for an undisclosed price. The portfolio includes five assets located adjacent to the former Brunswick Naval Air Base in Brunswick and a sixth property located in the neighboring town of Topsham. The portfolio consists of a combination of townhouses, garden-style apartments, single-family homes and land for future development. The Mid-Coast area consists of approximately 95,000 people within a 15-mile radius. The name of the seller was not released.