Courtesy / Google Earth, Malone Commercial Brokers
The shopping center, seen in the middle of this aerial, is in a highly trafficked area.
August 29, 2019
Scarborough shopping center is first ME investment for MA investors
Courtesy / Malone Commercial Brokers
The recently purchased shopping center at 450 Payne Road in Scarborough has a 15,782-square-foot building and 4,560-square-foot building that are fully leased. There are about 89 parking spaces.
A great location at a heavily trafficked intersection and good synergy with surrounding businesses checked boxes for Massachusetts investors looking to make their first foray into Maine.
Parkingway Management LLC bought a 20,124-square-foot shopping center, at 450 Payne Road in Scarborough, for $3.775 million. The seller was Jenty LLC.
Mark Malone of Malone Commercial Brokers represented the seller and Michael Anderson of Malone Commercial Brokers represented the buyer in the transaction, which closed July 23.
The fully leased shopping center, on 2.2 acres, consists of two steel frame buildings, measuring 15,782 square feet with 14-foot ceilings and 4,560 square feet with 18-foot ceilings, according to Malone Commercial Brokers marketing information. There are about 89 parking spaces.
The larger building consists of four units occupied by three tenants: Great East Butcher Co., Crisp Classes and NAPA Auto. The smaller building is occupied by LeRoux Kitchen.
The center is called 450 Payne Plaza and is adjacent to Payne Road Plaza to the north and Sam’s Wholesale Club to the south. Marden’s, Wal-Mart and Scarborough Gallery are directly across the road and share a signalized intersection. The center is highly visible and easily accessed from I-95/Maine Turnpike, I-295 and U.S. Route 1. The traffic count is over 24,010 vehicles per day.
Strong Scarborough market
Parkingway Management LLC is owned by Mike d’Hemecourt, Patrick Cleary and Terry Murray, all residents of Massachusetts.
“I’ve been in the commercial real estate industry for 16 years, starting as retail broker,” said d’Hemecourt. “Over the past eight or nine years I’ve been synergizing the brokerage work with the investment/development side of the business.”
Courtesy / Mike d’Hemecourt
The partnership that purchased 450 Payne Plaza includes Mike d’Hemecourt, left, and Patrick Cleary.
Up to now, their company’s investments have been in Massachusetts. The holdings there include retail, office, multi-family and medical office properties that are mostly older, vacant buildings in need of redevelopment for subsequent leasing.
“But my wife is from Houlton and she’s got family in Saco and Biddeford, so we’re always in Maine,” he continued. “I’ve always loved the Greater Portland market. Over the past year and half we’ve been looking for deals up there and working with Mike Anderson, who has been great.”
The shopping center met all of their requirements, including a great location, signalized intersection, heavily trafficked road and good synergy with surrounding businesses, he said. Scarborough was also attractive as a fast-growing community in Greater Portland, he added.
Courtesy / Malone Commercial Brokers
Great East Butcher Co. is one of four tenants at 450 Payne Plaza. The plaza recently sold for $3.775 million.
Plus, the center has a good mix of tenants.
“A lot of our projects have been adaptive reuse of older buildings,” he explained. “This one has great tenants now and the plan moving forward is to work with the tenants, see how we can help them succeed better and improve the property.”
Expected improvements include landscaping upgrades and better pylon signs for improved visibility. A pylon sign is a freestanding sign of the type often seen at shopping centers.
The buildings were constructed in 1970 and 1985 and could use a bit of livening up, he added.
“Right now, it’s cosmetic upgrades,” he said. “We’re putting together a plan. The previous owner maintained the property well. That’s always a good situation to get into.”
The plan is to look for additional assets in Maine.
“This was a good first foray into the market,” he said. “I think Scarborough is a strong market. You’ve got the density of population combined with a business base and a tourism base that’s also driving that economy.”
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