🔒Home makers: From island communities to bustling downtowns, housing projects include new builds and repurposed mills

As Maine seeks to address an 84,000-unit housing shortfall, numerous developments are in the works. They range from single-family to apartment complexes, from small island communities to bustling downtowns to repurposed mills, historic houses and hotels. A common theme is to fill the gap of affordable and “missing middle” housing, in turn helping employers find and retain workers while providing a return for investors.

Downtown living

M&R Development, known for its 577-acre mixed-use Downs development in Scarborough, plans to build a 51-unit apartment building in Freeport. The town of Freeport approved the $15 million project, called the Dash, on the corner of Depot and Mill streets, one block from Main Street. The site is now a parking lot. The concept came about when M&R’s team collaborated with Freeport’s town leadership and Downtown Vision Committee to share research and ideas, says Dan Bacon, the firm’s development director. “We know downtowns need people to remain vibrant, and we are excited to deliver that to historic Freeport,” says Bacon. M&R is under contract to buy the lot from L.L.Bean. The Dash marks M&R Development’s eighth housing development since 2015, with hundreds of units in Westbrook, South Portland, Scarborough and now Freeport. Construction is set to start this spring and wrap in 2027. The three-story building, designed by Portland-based Woodhull, will offer market-rate studio, one- and two-bedroom apartments, a gathering space and 51 parking spaces. The name pays homage to a historic privateering ship called Dash, built by the Porter brothers on Porter’s Landing in Freeport in 1813. The schooner completed 15 voyages until one day it sailed into a storm and was never seen again. The ship is part of Maine folklore. John Greenleaf Whittier’s poem, “The Dead Ship of Harpswell,” refers to “Old shipwrights sit in Freeport yards / Who hewed her oaken frame.”

Key parcel

Bacon lives in Freeport and drives by the site daily. “We think it will be appealing across the board, but particularly for young professionals, single individuals and/or empty nesters,” he says, adding: “We think it’s a great location for people who might be, say, working in downtown Freeport and/or just want the amenities of living in a small downtown.” The location was identified by the town as a key parcel for housing development. “Elected officials, volunteer board members and town staff have worked hard over the last year to create predictable approval processes for great projects like the Dash, and it was very affirming to see residents stand up, one after the other, to voice their support for new housing in Freeport,” says Brett Richardson, the town’s development director. The goal is to make the downtown a great place to live. “The Dash is great for the community because it will diversify the type of housing units we have available in town,” Richardson says. "We’ll have folks living right downtown who will add vibrancy to the community.” Other housing is in the pipeline, including Varney Heights Senior Apartments, off Lower Main Street. But within the downtown proper, the Dash is the first multi-unit housing project in many years. “We’re focused on areas where, essentially, people can conveniently access the downtown within a five- to 10-minute bike ride or a 20-minute walk,” says Richardson. “Both are great projects,” he adds.

‘Housing for shipbuilders’

Bath Iron Works and housing officials broke ground on “housing for shipbuilders,” a project designed to ease the housing shortage for workers at the Bath shipyard. The development, at 150 Congress Ave., will include three buildings with 84 apartments. BIW contracted with Developers Collaborative in Portland to develop and manage the complex. Apartments are expected to be available in mid-2027. The $20 million project has funding from the U.S. Navy and BIW’s parent company, General Dynamics, as well as financing arranged by Developers Collaborative. The site is a 20-minute walk to the shipbuilder’s main yard on Washington Street and to downtown Bath. “Helping make housing more attainable will help us retain and attract a world-class team and benefit the community of Bath as well,” Charles Krugh, BIW’s president, has said. BIW employees will have first priority for leasing. Unused capacity will be available to Navy personnel, then the community. It’s expected the apartments will be most helpful to new employees and long-distance commuters, with market-rate rents priced to be attainable for shipyard workers.  

‘Net zero’

Zero Energy Homes, a startup that develops modular homes for the affordable housing market, contracted design/build firm Knickerbocker Group to manufacture modular units for a single-family home at 12 Fairway Vista Road in Trenton. “Modular homebuilding has many benefits, such as allowing us to build consistently year-round regardless of the weather outside,” says Mattie Bamman, Zero Energy’s communications coordinator. Zero Energy Homes, founded and led by Caroline Pryor and located in the Hancock County town of Mount Desert, completed its first home in Searsport in 2025. It aims to show that modular construction combined with “net zero energy” features — such as wood-fiber insulation and triple-glazed windows — can be priced for the affordable housing market. Open houses for the Searsport house attracted at least 200 people. “We’ve gotten amazing feedback,” says Bamman.

Class A

Pennsylvania-based A.R. Building Co. is developing Mount Auburn Apartments, a 101-unit, market-rate complex in two four-story buildings at 138 and 142 Mount Auburn Ave. in Auburn. One building opened last summer and is over halfway leased. The second should open this coming summer. “We specialize in Class A communities,” says Cam Reber, vice president of operations. “In this area, we found there was s lack of housing and also a significant lack of quality housing. We saw an excellent opportunity to come in and provide that for residents in Auburn and Lewiston.” Amenities included 24/7 emergency maintenance, fitness center, package locker system, elevators and cable and Internet package. One-bedrooms average $1,850 and twos $2,400. A.R. Building is also developing Nonesuch River Apartments, a 120-unit complex of 10 buildings at the corner of Mussey and Gorham roads in Scarborough, with similar amenities plus a clubhouse but minus the elevators. Two buildings and the clubhouse are operational. “This is a phased project,” says Reber. “We plan to open more buildings in the late spring.” Rents range from $2,200 to $2,850. The design fosters a “small community” feel, he adds. Both are positioned as luxury developments at market rates. “The way leasing is going, this seems like a home run,” Reber says.

Workforce rentals

Following the success of its first 10-unit development in Deer Isle, Island Workforce Housing has 12 workforce rentals underway in Stonington. The $2.9 million Oliver’s Ridge development, completed in 2023, is 10 two-bedroom rentals in five duplexes. All units are occupied. The $3.4 million Thurlow’s Way project, 12 apartments across three modular buildings, is due to wrap this spring. Both were financed through capital campaigns and bank loans. Units are prioritized for households with year-round island workers, with incomes from 80% to 140% of Hancock County’s area median income, adjusted for household size. The projects respond to lack of housing in the small midcoast island towns. Of nearly 800 year-round jobs available, about 100 go unfilled due to lack of housing, especially for first-time homebuyers and those in the lower-income bracket, a study said.

Mill conversion

Newmarket, N.H.-based Chinburg Properties’ redevelopment of the century-old 68,000-square-foot Jagger Mill, at 5 Water St. in Sanford’s Springvale district, will bring 86 market-rate apartments: 39 studios, 37 one-bedrooms and 10 two-bedrooms. The $21 million project received construction bank financing and utilizes state and federal historical tax credits. The first phase should wrap in July and the total project by the end of the year, says Paul Goodwin, Chinburg’s director of commercial development. Design and construction are in-house by Chinburg Builders Inc. Originally part of the larger Goodall Worsted Co. alpaca mill complex, then housing Jagger Brothers yarn manufacturing, the brick building features large factory windows and high ceilings typical of the era. Chinburg acquired the property in 2024. “As the project is utilizing historic tax credits, it will have to comply with the rigorous historic preservation standards of the National Park Service, historic masonry will be repaired and historically accurate replacement windows will be installed,” says Goodwin. Amenities will include a clubroom, patios, fitness center, pet wash, EV charging, bike storage, dog run and landscaping and site improvements. “In honor of the Jagger family’s century-long commitment to Sanford, the project will be called Jagger Lofts,” adds Goodwin. “A selection of materials and artifacts from the facility were collected and will be displayed.”

Preservation

At Wenbelle Apartments in Bucksport, Gurnet Real Estate Group is updating units as they become available. The Boston and Portland real estate investment and management company, led by Collin van der Veen and Rylee Knox, acquired the 66-unit complex in an off-market deal in 2025. Its mission is to deploy capital into multifamily investments by creating high-quality, attainable living spaces, while generating risk-adjusted returns for investors. The four buildings, at 6, 12, 18 and 24 Wenbelle Drive, date back to the 1970s and 1980s. Wenbelle was originally built with financing through a U.S. Department of Agriculture program that sought to provide affordable rental housing in rural areas by providing developers with low-interest, long-term loans, says van der Veen. Gurnet acquired the property using a Federal National Mortgage Association “sponsor-dedicated workforce housing” program that offers advantageous loan terms to borrowers for affordable housing preservation or creation. Says van der Veen, “The property was in pretty good shape when we bought it. As units have naturally turned over, we’ve done some renovations. It’s been a really great market up there.”