Courtesy / Malone Commercial Brokers
Parking off Cleaves Street serves most of the portfolio.
November 10, 2019
Multiple multi-families in Biddeford gain investor interest
Courtesy / Malone Commercial Brokers
Multi-units at 125-131 Cleaves St. in Biddeford were part of a portfolio purchased by a single investor in one day.
One sale and four purchases closed within a five-day period, in related transactions that totaled $2.214 million.
Brandon Mitchell of Malone Commercial Brokers was the link that brought the package together on behalf of his client, 4A Property Management LLC. The client was interested in creating a portfolio of multi-unit properties, preferably in Biddeford, to replace a multi-family in South Portland.
In just one day, 4A Property LLC bought the following, all in Biddeford:
• 25 Hill St., a 3,762-square-foot four -unit multifamily building on 0.09 acre from Laurie Clark for $260,000. Mitchell and Nancy Wakefield of Town Square Realty Group brokered the transaction.
• 3 Clifford St. and 88 Cleaves St., a .05-acre lot and a 7,164-square-foot five-unit multi-family on .07 acre from BJB Realty for $470,000. Mitchell and Vince Ciampi of Porta & Co. brokered the transaction.
• 125-131 Cleaves St., a 7,700-square-foot, six-unit property from Bragdon Wharf Corp. for $750,000. Mitchell and Anne McPheeters of OceanView Properties brokered the transaction.
• 90 Cleaves St., a 3,976-square-foot five-unit multi-family from Ramona Marcisso for $357,500.
Five days later, 4A Property Management LLC sold 800 Broadway in South Portland, a three-unit multi-family, to Joseph DiBiase for $376,500. Mitchell and Ashley Kilmartin of Landing Real Estate brokered the deal.
Biddeford preferred
Mitchell’s client had certain criteria, according to a Malone news release. They included:
• Five or five-plus-unit buildings with a mix of one to three-bedroom units preferred;
• Price range of $70,000 to $75,000 per door;
• Biddeford area properties preferred.
Cash flow, location and leverage were paramount in the selection of properties for analysis and consideration. Some of the properties were on the market while others were not listed for sale.
“There were excellent opportunities in what could be called a niche market of older B/C class multi properties,” the release said. “An investment strategy that allows for moderate renovations offers significant upside to tenants as well as the landlord. These properties often provide renters with more reasonably-priced alternatives and value relative to new multi-unit construction.”
Due diligence, inspections and deadlines were tight. The four acquisitions wrapped up in a single financing package. Overall, the properties are in good condition.
“Each property will be maintained for the long term and gradually updated as tenants turn over,” the release said.
Four closings, one day
The search began early this past spring, said Mitchell, who added that his client was looking to grow his portfolio and also needed to complete a 1031 tax exchange.
“That defined our timeline,” he said of the latter.
Finding the right properties wasn’t always easy, he noted.
“There was a lot of ‘no’ and a lot of door knocking,” he said. “But it worked out great. We got it together at the last minute and were able to close with four different owners on the same day.”
125-131 Cleaves St. was the first to go to contract, around July 4.
“That’s a beautiful property,” he said.
Then there was some strategizing.
Courtesy / Malone Commercial Brokers
Like the other multis, 3 Clifford St. is rentable but in need of some improvements.
“We looked at a few others, but there was nothing on the market,” he said. “So I started searching through the expired listings. I knew the owner of one and reached out. They agreed to sell the building at 90 Cleaves St.”
Conversation with a neighbor uncovered another property owner interested in selling 88 Cleaves St. and 3 Clifford St., which had enough vacant land to provide parking, he said.
“It really fell into place nicely,” Mitchell said.
The properties were turnkey but in need of improvement, he said.
Mitchell added that daily communications with his client, as well as excellent relationships with brokers on the other side of the transactions, were key to making the package work.
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