Bath multi-unit complex attracts multiple, full-price offers
Courtesy / F.O. Bailey Real Estate
The quick sale of 1 Ledgeview Lane in Bath represents high demand for multi-unit investments.
A multi-unit apartment complex in Bath attracted at least 50 queries and was on the market for only a week before it was snatched up at full price.
Whitebark Properties LLC bought 1 Ledgeview Lane from MSP Properties 1 Ledgeview LLC for $2.05 million.
Thomas Gadbois and David Jones of F.O. Bailey Real Estate represented both the buyer and seller on the deal, which closed July 8.
The 23,040-square-foot, 24-unit apartment complex on 3.5 acres was built in 1996 and was marketed as a turnkey investment with under-market rents that would give the buyer upside.
After owning the property for a year and then pursuing another opportunity that had arisen, the seller netted $575,000 in the sale, said Gadbois.
Rare find
Once the property hit the market in April, it received multiple full-price offers, he said. It was under contract within a week.
“The amount of activity was unbelievable,” he said.
The complex is fully occupied and there’s a waiting list of tenants.
“It’s a hidden gem,” he added.
Why such hot demand? A turnkey apartment complex is a rare find for the area and below-market rent provides the buyer with considerable upside, he explained.
“It’s a win-win for both parties,” he said.
The buyer is a previous F.O. Bailey Real Estate client.
Whitebark Properties LLC is based in New York, has some roots in Maine, and has been in construction and apartment management for a long time, Gadbois said.
“They’re a client of ours that appreciates the deals we find them,” he added.
In 2018, Gadbois represented Whitebark in a $4 million private-offer deal that involved 106 apartment units in 21 different buildings in Sanford and Springvale. Jones represented the seller.
“It’s another example of people wanting to invest in Maine to get out of the bigger cities,” Gadbois said of the Bath deal.
Whitebark continues to be interested in Maine real estate, due to good returns and Maine’s reputation as a safe place.
“I think Maine’s is one of the safest places to invest in right now," Gadbois said, citing the state’s low coronavirus infection rate and low crime rate. The ability to work remotely and get a decent real estate deal is attracting interest.
Multi-units are in high demand, particularly among out-of-state investors seeking to leave pandemic hot spots, he said.“The biggest part is finding the inventory,” he added.
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