Courtesy / Malone Commercial Brokers
Jessica Johnson Beauty Products formerly occupied a 941-square-foot unit at 15 Middle St.
November 1, 2020
Two Portland commercial condos snapped up, reflecting hot market
Courtesy / Malone Commercial Brokers
Two commercial condo units in the Bay House, at 15 Middle St. in Portland, were quickly purchased by owner-occupants.
Two commercial condominium units in downtown Portland were snapped up by buyers who saw an opportunity to take advantage of low interest rates.
The units are located at the Bay House, a residential/commercial condo building at 15 Middle St.
H&E Properties LLC bought a 991-square-foot unit from Bay House Unit BC3 LLC for $290,000. Joe Malone and Jennifer Small of Malone Commercial Brokers brokered the transaction, which closed Sept. 18.
DH Middle LLC bought a 941-square-foot unit from JAJ Holdings for $290,000. The deal closed Sept. 28. Malone and Small represented the seller and Peter Gwilym of Porta and Co. represented the buyer.
Both units were bought by buyers that plan to occupy them as well.
“These have become a really hot commodity,” Small said of the availability of retail units in downtown Portland.
Why?
“With interest rates low, a lot of owners, especially in that square-footage range, can own units cheaper than they can lease them,” she said.
The Bay House was developed by Reger Dasco Properties and was completed in 2015. It has six street-level commercial condos and 86 upper-story residential units.
The smaller unit was formerly occupied by Jessica Johnson Beauty Products. It initially went on the market as a leasing opportunity.
“We ended up selling it,” said Small. “It was bought by Dathan Hunter,” a hair salon with another Portland location that plans to use the space pretty much as it is, she added.
The larger unit was bought by its tenant, a nail salon called H&E Paint Bar.
“It was an investment,” said Small.
Both units sold quickly, she added.
While low interest rates make the investments worthwhile, the sellers are also getting good returns, said Small. The units sold for $292 and $308 per square foot.
“Those two units sold, on a per-square-foot basis, higher than other small condominium units we’ve sold,” she said. “We have yet to see any price-softening in the marketplace. Investment inventory still remains very low.”
Pent-up demand for property on Portland’s peninsula will likely sustain those prices, even if there’s fall-off due to the pandemic in other regions or sectors, she added.
The owner of a third commercial unit in the building, originally looking for a tenant, also decided to sell; that deal is under contract.
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