A $1.8 million redevelopment in downtown Millinocket that will have five apartments and two commercial spaces is wrapping up at 196 Penobscot Ave.
The two-story, multi-use building is the latest project of the Northern Forest Center, which scheduled a ribbon-cutting for Jan. 14.
“These new apartments are meeting a crucial need in the region for year-round, middle-market rental housing,” said Mike Wilson, senior program director at the center.
The project, which took over a year, follows the model of the center’s previous housing initiatives in Millinocket, Bethel, Lancaster, N.H., and St. Johnsbury, Vt.
“In each of these, we restored in-town buildings to create quality apartments, helping to revitalize each community,” said Wilson.
Housing projects
Northern Forest Center is an innovation and investment partner founded in 1997.
Its previous housing project in Millinocket involved the purchase and renovation of six buildings, completed in 2020, transforming dilapidated downtown properties into homes. Four of the renovations were extensive, reconfiguring the living spaces, replacing all windows and insulation, replacing a roof and adding automated wood heat.
The most ambitious project, at 100 Katahdin Ave., was a top-to-bottom renovation that reconfigured the building from five apartments to three.
Last year, the center completed the $5.9 million conversion of a historic Bethel home into nine units of rental apartments for middle-income, full-time residents.
Modern updates
The latest Millinocket project was funded by impact investment capital from the center’s Northern Forest Fund, a U.S. Forest Service Wood Innovations grant, Penobscot County ARPA funds and charitable donations.
The building dates back more than a century. The project provided updates to modern standards while maintaining historic features. There are four one-bedroom apartments, one of which meets accessibility standards of the Americans with Disabilities Act, and one two-bedroom apartment.
In addition to rental apartments, two commercial spaces are designed to contribute to downtown activity. Baby Ruthies, an ice cream takeout and restaurant that is open year-round, took a lease in one of the units in early 2025. The other commercial space is available for lease.
The center prioritizes regional wood products in construction. Throughout the 125-year-old building, there is reclaimed original wood flooring, wood fiber insulation from TimberHP in Madison, a wood pellet boiler for full-building heat and new birch wood flooring from Maine.
Overall, the center’s work in the Katahdin region includes projects that improve recreation access and resources, provide workforce development in local schools, enhance downtown vibrancy and build nonprofit capacity. In 2017, the center expanded its programming to include redeveloping underused properties into homes for rural communities.