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November 17, 2023

5-building industrial portfolio sells for $14.6M in off-market deal

aerial of big buidlings Courtesy / The Dunham Group The industrial property at 400 Warren Ave. in Portland was part of a five-building portfolio that was snapped up in an off-market deal.

A package of five industrial buildings in Maine’s three largest market areas — Portland, Auburn and Bangor — sold quickly in an off-market transaction for $14.55 million.

Capital Properties LLC bought the portfolio from K&R Realty LLC. 

The listing price was $14.8 million.

TC Haffenreffer and Sylas Hatch from the Dunham Group represented the seller and Brandon Mitchell from Malone Commercial Brokers represented the buyer. The sale closed this past Saturday.

aerial of big buidlings
Courtesy / The Dunham Group
420 Warren Ave., Portland

The locations are:

  • 392 Warren Ave., Portland
  • 400 Warren Ave., Portland
  • 420 Warren Ave., Portland 
  • 80 Kittyhawk Ave., Auburn 
  • 35 Godsoe Road, Bangor

The buildings total 152,757 square feet on 12.58 acres and are fully leased to a credit tenant, Beacon Building Products.

Beacon (Nasdaq: BECN), founded in 1928 and headquartered in Herndon, Va,, is the largest publicly traded distributor of roofing materials and related building products in the U.S. and Canada, according to the company's website. Among the products are commercial and residential roofing, siding, windows, decking, insulation, specialty lumber, waterproofing and air barrier systems. Beacon has over 400 locations across North America.

In Portland, 400 Warren Ave. is 45,270 square feet, which includes a 41,000-square-foot warehouse, 2,000-square-foot showroom and 2,270-square-foot office, according to the listing memorandum. The facility was constructed in 1978 and expanded in 1981.

aerial of big buildings, pavement and vehicles
Courtesy / The Dunham Group
392 Warren Ave., Portland

The 420 Warren Ave. building covers 38,380 square feet, including a 36,000-square-foot warehouse and 2,380-square-foot office, two loading docks and two overhead doors. It was built in 1975.

The 392 Warren Ave. building, dating to 1973, is 11,400 square feet. It was marketed as a “rare flex building on Warren Avenue” with under-market rents that offer “plenty of upside.” The space includes a second-floor office and heavy-duty mezzanine space with overhead door access. 

In Auburn, 80 Kittyhawk Ave. has a 28,000-square-foot warehouse and 1,040-square-foot showroom, plus eight loading docks and one overhead door. It was built in 1989.

In Bangor, 35 Godsoe Road has a 15,790-square-foot heated warehouse and a 13,280-square-foot, partially insulated warehouse for cold storage. It was built in 1977 and added onto in 1984.

All of the properties have close proximity to Interstate 95.

building withe vehicles and sign
Courtesy / The Dunham Group
80 Kittyhawk Ave., Auburn

The seller, K&R Realty LLC, is a local company that decided it was the right time to sell, Haffenreffer told Mainebiz.

Haffenreffer and Hatch reached out to some national and local investors and quickly found a buyer, Capital Properties LLC.

“Capital Properties had a 1031, so they made a pretty solid offer,” Haffenreffer said.

A 1031 is a “like-kind,” real estate exchange, named after its IRS section code, that allows an investor to put off capital gains tax from a sale by investing the money into a similar property.

building with big doors and shipping container
Courtesy / The Dunham Group
35 Godsoe Road, Bangor

Earlier this year, Capital Properties, an investor partnership, sold a multi-family portfolio in Augusta — consisting of 219 units across 48 buildings plus four vacant lots — for $13 million. Brandon Mitchell of Malone Commercial Brokers represented Capital Properties in that deal as well.

Overall, said Haffenreffer, the industrial leasing remains strong. 

“The industrial sector has remained strong due to lack of supply,” he said.

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