Courtesy / Maine Realty Advisors
360 Cumberland Ave. in Portland, seen here before new siding was installed, came with existing leases in the three storefronts.
November 22, 2019
West Bayside outskirts seen as next prime investment area
Courtesy / Maine Realty Advisors
Exterior renovations at 360 Cumberland Ave. in Portland are underway. In addition to the new siding here, new lighting and signage will be designed to give the building a contemporary look.
An off-market investment in 360 Cumberland Ave., on the outskirts of West Bayside in Portland, signals confidence that there’s room to expand the neighborhood’s growing cachet.
Stark Industries LLC bought the mixed-use retail/residential property from Cliffs Edge LLC for $935,000. Josh Soley of Maine Realty Advisors brokered the deal, which closed Oct. 1.
The 6,000-square-foot building consists of five residential units upstairs and three commercial units, each with its own storefront, at street level. In the rear, there’s a freestanding 1,000-square-foot concrete block building, with exposed steel beams, concrete floor and private patio.
The three storefronts are occupied by New York-style pizzeria called Pizzaiolo, a convenience store called Cumberland Ave. Shop, and an African grocery called Moriah Store.
After the sale finalized, Soley brokered two leases at the property. Pizzaiolo re-upped on a 2,000-square-foot lease. A new speakeasy called Lost & Found leased the block building out back and expects to open by early spring, Soley said. The bar is in the process of going for city applications and will be in the lower-middle of the price range for food and drinks, he said.
“We have high expectations for this new establishment and believe it will complement this growing neighborhood well,” he added.
Soley’s company, Maine Realty Advisors, is handling the property’s management and leasing.
Built in 1921, the two-story wood construction structure is sound but in need of updates, he said.
Renovations are underway. That includes replacement of tan exterior siding with black siding. New exterior signage and lighting will be installed, for a more contemporary look.
The one- and two-bedroom apartments on the second story are being completely renovated. Features will include granite countertops and stainless steel appliances. The work is expected to be completed in 45 to 60 days.
“The previous landlord delivered the building to us with several vacant units,” Soley said. “We prioritized those units first. We are going to line up other housing options for the existing tenants before we begin work in those units. As a management company, it is easy for us to make sure we retain all of our tenants.”
He added, “We believe this area can yield full market-rate rents in the $1,400 per month range.”
All together, renovations are expected to cost $250,000, he said.
Interior upgrades to the commercial units will be done as the space becomes available, he said.
“We’ll have the convenience store unit on the market soon,” he said. “Its likely the pizza restaurant will expand into it. So we’ll do work at that time.”
West Bayside is bounded by Cumberland and Forest avenues, Franklin Street and Marginal Way. 360 Cumberland Ave. is just across the street from the neighborhood. Investment just outside of the neighborhood is worthwhile, he said, because property prices are lower, providing value-add opportunities; and the properties are more visible than those within West Bayside.
The building sold for approximately $133 per square foot, considered to be a steep discount in Portland, where small buildings like this one generate market rates of $175 to $200 per square foot, Soley said. The renovation, he said, will substantially improve the value, to a basis of $170 per square foot.
Courtesy / Maine Realty Advisors
A smaller freestanding building on the property is under renovation for a leasee who plans to operate a speakeasy bar.
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