10-story InterMed tower in Portland sold to out-of-state investor

Courtesy / Davis InterMed serves primary care patients at 84 Marginal Way in Portland, shown here, as well as locations in South Portland and Yarmouth.

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By William Hall

A 10-story tower in Portland’s Bayside neighborhood, known as the InterMed Building, has been sold to a Minneapolis real estate and investment firm for $37.8 million.

Davis Medical Investors LLC closed Wednesday on its purchase of the 107,228-square-foot building at 84 Marginal Way, according to a news release Thursday morning.

The property currently has an assessed value of $37.6 million, according to city tax rolls. The owner was recorded as Atlantic Bayside Trust LLC.

The 135-foot-tall building includes six floors of offices. Their primary tenants include InterMed PA, one of Maine’s largest primary care practices, and law firm Drummond Woodsum. There’s also a four-story parking garage.

When completed in 2008, the building was the city's largest office building construction project in two decades. Today, the Class A building, on 1.37 acres just yards from Interstate 295 and at the foot of the Portland peninsula, is 100% leased.

The property is an ideal fit for the Davis fund, said founder and Managing Partner Mark Davis.

"The 84 Marginal Way purchase fits all of our acquisition criteria, including a high occupancy level, financially strong credit tenancy, and the high quality of the property and the geographic market," he said in the release.

"Although we are very pleased with this acquisition, there is more to come." The overall goal for the Davis Medical Investors LLC fund is to acquire $150 million or more each year, he added.

Joe Massa, senior managing director at Institutional Property Advisors, represented the seller.

Over the past five years, Davis Medical Investors has developed 33 Class A medical buildings totaling about $365 million in development costs, and completed 47 investment transactions totaling more than $575 million.

Editor's Note: This article has been updated to include the selling price, which was received after deadline.