Courtesy / The Boulos Co.
Auto Europe next bought new digs at 43 Northport Drive in Portland’s Northport Business Park in a 1031 tax exchange.
December 5, 2019
Three deals, one day, $14.6M changes hands
Courtesy / The Boulos Co.
Auto Europe recently sold its long-time home, the Galt Block at 21-39 Commercial St. in Portland, for $10.5 million. In related transactions finalized the same day, Certify Inc. took on a long-term lease from the Galt Block’s new owner.
By Staff
The Boulos Co. recently completed three intertwined Portland real estate transactions in one day, resulting in two commercial property sales and a lease, with the value of the three deals totaling $14.65 million.
The transactions involved two properties in the city: the iconic Galt Block building at 21-39 Commercial St. and 43 Northport Drive in North Deering’s Northport Business Park, Boulos said in a press release.
Three Maine firms and a Boston-based developer were involved in ensuring the related deals took place smoothly.
Galt Block
The story starts in 1991, when Boulos senior partner Tony McDonald helped Auto Europe, a global leader in international car rentals, move to Portland from Camden.
Three years later, in 1994, McDonald helped Auto Europe acquire the 38,072-square-foot, five-story Galt Block and adjacent parking lot. At the time, the Galt Block was mostly derelict and located at the edge of a gritty industrial area. Renovations ensued and Auto Europe has occupied the building since then.
More recently, the site was showing its limitations. The multi-story configuration and cost of downtown parking for more than 250 employees made the building less suitable for Auto Europe, which began looking for a single-story location with free parking and access to public transportation.
43 Northport Drive
So McDonald approached another client who owned an ideal one-story building in Portland’s Northport Business Park.
At first, that client wasn’t interested in selling, but several months later selling became an attractive option. Auto Europe executives agreed that 43 Northport Drive was ideal for their needs, and McDonald arranged a transaction that allowed them to take over the facility complete with furniture and fixtures.
1031 exchange
In order to acquire its new home, Auto Europe needed to sell the Galt Block building and use proceeds from that sale under a tax-deferred exchange, following Section 1031 of the IRS code. McDonald brought the Galt Block to market this past spring and received several offers. The winning offer came from a group led by New England developer Ara Aftandilian, who has been responsible for projects in Portland like the AC Hotel by Marriott and Twenty Thames, a luxury condominium building at 20 Thames St., both on Portland’s eastern waterfront.
Aftandilian had no definite plans for the property.
But Drew Sigfridson, the Boulos Co.’s managing director, had been working with Certify Inc., a software firm offering travel, invoice and expense report management solutions. The growing Portland firm had expanded to multiple locations throughout the city and was hoping to find a consolidated home downtown, in a building with character that supported their employee-focused vibe, and offered visibility to assist in recruiting. Certify decided the Galt Block would be perfect as a lease.
To qualify the sale of the Galt Block as a 1031 tax exchange, all of the parties came together in a simultaneous closing.
Auto Europe sold the Galt Block property to Aftandilian for $10.5 million. Then Auto Europe bought 43 Northport Drive for $4.15 million.
At that same time, the Certify long-term lease became effective with a planned move-in date in 2020. Auto Europe will relocate to the Northport building in February.
“Businesses like these are helping to grow and strengthen the Portland and Maine economies,” McDonald said. “It’s very rewarding when a complex deal like this falls seamlessly into place.”
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Anonymous
December 5, 2019
Yet another business moves off of the Portland waterfront to make way for expensive condos built up by out of state developers.
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