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Updated: August 10, 2020

State Theatre building owner buys sizable Portland industrial building for $10M

Courtesy / NAI The Dunham Group Brockway-Smith Co. sold 203 Read St. for $10 million as part of its relocation 3 miles away to 7 Rand Road.

The owner of the State Theatre building in downtown Portland saw a leasing-revenue opportunity in the acquisition of a 167,154-square-foot industrial building a little farther out in the city.

187–209 Read Street LLC bought 203 Read St. from Brockway-Smith Co. for $10 million. 

Tom Dunham, Greg Hastings, Sylas Hatch and TC Haffenreffer from NAI The Dunham Group brokered the sale, which closed July 1.

The seller, Brockway-Smith Co., also known as BROSCO, is based in Wilmington, Mass. Founded in 1890, the fourth-generation family-owned business is the largest distributor of millwork products in the Northeast, according to its website. 

BROSCO has regional distribution centers in Portland and Hatfield, Mass. The company opened its 203 Read St. location in 1963. Substantial additions were made to that plant in 1972 and 1984.

In April, BROSCO bought a larger, more efficient facility for its Portland operations just 3 miles away, at 7 Rand Road, for $12.8 million. 

Brockway-Smith Co. in April bought 7 Rand Road.

The 203 Read St. building, just off Interstate 295, is on 6.8 acres. The space is set up for warehousing, distribution or manufacturing, and includes 7,000 square feet of air-conditioned office space. The building can be easily subdivided into smaller spaces, according to the listing. There are 14 interior loading docks and paved parking for 140 vehicles.

BROSCO plans to be completely moved to its Rand Road digs by the end of October, said Hatch, who represented the buyer and has the building listed for lease now.

The buyer entity, 187–209 Read Street LLC, is owned by Redstone, a Burlington, Vt., company that has developed, brokered and managed properties, primarily in Vermont, for over 25 years, according to its website.

Redstone and its partners bought the nearly-century-old State Theatre building, located at  609 Congress St., in 2015. Today the building houses the theater plus retail, office, art studios and other commercial activity.

Screenshot / Courtesy / Redstone
Redstone acquired the State Theatre building in Portland in 2015.

The Read Street property is Redstone’s second acquisition in Maine, said Hatch. The company was looking for real estate investment opportunities in Maine, particularly in the industrial sector and specifically among larger industrial properties, he added. 

“They like the metrics,” he said. “There’s almost no availability for large industrial properties in southern Maine.”

The building was also attractive because it can be easily subdivided.

“It’s flexible, so it’s not all or nothing. They’re open to subdividing," said Hatch.

And at $60 per square foot, the price was reasonable.

“That’s a good range,” Hatch said. “The market’s changed so drastically over the last two years or so. A couple of years ago, that building probably would have been closer to $50 per square foot. Now it's $60, and pretty soon it will be $70. The market is changing pretty quickly.”

The building, although dating back to the 1960s, is in great shape, he added. Minor capital improvements are planned, such as fixing up the parking lot.

Hatch has listed the building for lease, either in part or in whole.

“Interest has been strong,” said Hatch, who has received at least three or four queries for partial space and at least half a dozen for the whole thing.

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