17-property real estate megadeal is one of Maine’s largest this year
Courtesy / The Boulos Co.
The building at 41-43 River St. was the largest one in a 17-property portfolio in Sanford that sold for $3.95 million.
The portfolio sale of 17 multifamily buildings in Sanford, including 49 fair-market and subsidized apartments, is one of the largest of its type this year in southern Maine.
56 Properties LLC bought the portfolio from 18 Cottage St. LLC for $3.95 million.
Chris Gallagher and Joe Italiaander of the Boulos Co. and Greg Perry of Compass Commercial Brokers brokered the deal.
The seller had acquired the properties over the past 20 years and handled all management responsibilities. The transaction allows her to focus on less management-intensive real estate investments and other ventures.
The buyer is an out-of-state group specializing in multifamily housing.
“There’s continued demand for multifamily housing in Southern Maine, especially for deals that offer economies of scale, like this one,” Italiaander said in a news release. “Given the statewide shortage of quality rental housing, tertiary markets like Sanford present an attractive opportunity for investors.”
The deal is considered one of the region’s largest due to the number of properties involved and the purchase price.
“You definitely don’t see this every day,” Italiaander told Mainebiz.
The buildings range in size from 1,070 square feet to 7,065 square feet. Four are single units, nine have two units, and there are buildings with four, six, eight and nine units. The largest is the nine-unit building at 41-43 River St.
The deal began when the team was marketing just one of the buildings. But a buyer came along who made an offer for the entire package. Given the opportunity, the seller decided she could accelerate her timeline to offload the properties, said Gallagher.
The units are all occupied.
Over the course of six months, the Boulos team navigated many challenges to bring the complex transaction to a close. For example, the buyer used two different tranches of financing.
“They financed half the purchase with a conventional loan and half with a Fannie Mae and Freddie Mac loan,” said Italiaander, referring to Federal Housing Finance Agency programs designed to help ensure a reliable and affordable supply of mortgage funds.
“So the deal required two totally different underwriting scenarios and two closing timelines, and there were 17 building appraisals by two different banks.”
The price was a combination of market value per unit, less some needed improvements. Although the buildings are generally in good condition, some cosmetic work is needed, said Italiaander.
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