Economy doesn't damper optimism for Bay House project
Photo/Robert M. Cook
Sandy Johnson, a partner of Town & Shore Associates in Portland, says the Bay House project is still moving forward despite the economy
Rendering/Courtesy Town & Shore Associates
A rendering showing where the Bay House project will be located
The Bay House condominium project in Portland's eastern waterfront district has been on hold for three years because of the financial meltdown in the fall 2008 that forced banks to tighten up financing.
But patience continues to be a virtue for Gordon Reger, one of three developers involved with this project, who believes the Bay House could finally line up the financing it needs this year.
"I do see the sentiment in the lending institutions changing and becoming more favorable," he says. "I definitely expect it is going to be this year."
Sandy Johnson, a partner of Town & Shore Associates LLC in Portland, says 10 of the 82 luxury condominiums that will be constructed in a fenced-in lot between Middle and Newbury streets are under contract, all to cash buyers. She says there is also great interest in the remaining 72 units that range in price from $170,000 to $750,000.
Those prospective buyers are just waiting to see a start date for construction before they will commit, she says.
Two years after luxury condominium sales took a major hit during the recession, there have been some recent signs they are selling again.
For instance, the Boston Globe reported earlier this month that sales and median prices in Boston's luxury condos increased by more than 50% in the first quarter of this year, according to the Listing Information Network, a private Boston company that tracks the downtown condo market. The same uptick is being reported in cities like Orlando, San Francisco and New York.
The faith that Reger, who owns Reger Holdings LLC of West Seneca, N.Y., and his business partners, Atlas Investment Group LLC of Boston, David M. White AIA, have in this market has enabled them to stay the course.
Johnson says the approximately $33 million project has already received all the needed approvals from the city of Portland. Barbara Barhydt, Portland's development review services manager, says the project has received its site plan and subdivision plan approvals, but will not receive its building permits until it has actually been completed.
Reger says he continues to "pay the bills" to hold onto the land where the condominium complex will be constructed.
"It will be built, it's just a matter of when," says Johnson.
The luxury condo complex features all single-level units that include features such as gas fireplaces, up to 10-foot ceilings, hardwood floors, granite kitchen countertops, marble tiled bathrooms, an underground parking garage, elevators and central air. The complex offers buyers 13 different floor plans. Johnson says the complex will also feature a gated courtyard between the two buildings, and will allow residents to access Portland's waterfront, Old Port and downtown restaurants, shops and cultural activities on foot. "There isn't another project that offers anything like that."
She says the project's market is mainly retiring baby boomers either from Maine or out of state. While some young professionals may purchase some of the lower-priced units, most of the would-be condo owners will be older adults.
She says the project also complements the city's vision for the eastern waterfront district, which it hopes will feature some hotels, luxury condominiums and commercial uses.
Once the project developers line up the financing they need to go forward, Johnson says it will take 15 months to construct the complex. Reger says the financing for the project could involve one bank or a combination of a large bank and other banks. Traditionally, he says condominium projects are always the most difficult to finance.
According to Johnson, the Bay House will be one of the most sought-after residential properties in Portland when it is completed and it will be the first luxury condominium complex built in the eastern waterfront district, which the developers have dubbed "The New Port" on the Bay House project's website.
As a way to keep the project in the public view and generate interest, the developers have maintained a model unit showroom at 46 Market St. that gives people a glimpse into what these units will look like.
Reger says he and his business partners all have extensive experience developing similar properties throughout New England and the country. For example, the Atlas Investment Group completed a $35 million mixed-use condominium project in Boston called the Gateway Terrace Condominiums that encompasses 248,000 square feet and includes 133 residential loft units and 15,000 square feet of street level commercial space.
"A project like this is not new to us," says Reger.
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