Courtesy / Back Bay Grill
Back Bay Grill chef and owner Larry Matthews sold the building his restaurant is in, but continues to lease the space and operate his restaurant.
May 21, 2021
NYC techies see potential for growth in ‘gritty’ Portland neighborhood
Courtesy / Benchmark Real Estate
The sale of 65-67 Portland St., in the Bayside neighborhood of Portland, was contingent on Back Bay Grill being able to stay.
Buyers looking to escape Brooklyn, N.Y., found the opportunity they were seeking in Portland’s Bayside neighborhood.
Joël Mangan bought 65-67 Portland St. from Larry Matthews for $1.25 million.
Tom Landry of Benchmark Real Estate represented both buyer and seller in the transaction.
The mixed-use 6,130-square-foot building, built around a century ago, contains two upper-story apartments and a ground-floor commercial space. The seller performed recent updates to the building that included bringing all systems and surfaces up to modern standards, according to marketing information. The restaurant includes a bar, full kitchen, spacious dining area and tin ceilings. The upper levels house two, 3-bedroom condo-ready apartments with abundant light and views of Back Cove. The property includes parking for four.
Upscale restaurant
The commercial space is occupied by Back Bay Grill, whose menu changes daily and where a three-course prix fixe dinner is $100 per person.
Back Bay Grill is owned by the building’s seller, Larry Matthews, who worked out with the buyer a lease with options to renew.
“The purchase and sale hinged on negotiating a mutually agreeable lease for both parties,” said Landry.
As a result, “We wanted to make sure we found the right buyer,” he continued. “Some owner/users might have wanted to come in and say, ‘You’re out of here.’”
Landry characterized the neighborhood as being “a little gritty” but on the cusp of “the next boom.” The presence of the upscale grill is something of a juxtaposition, he added.
“It’s a lovely experience when you walk in,” he said. “There are tin ceilings and wonderful old trim. It does have a bit of an Old World, old New York brownstone feel. And the food is fabulous. It’s a thing where you’re, like — wow, it’s not in the neighborhood where you’d think it would be. But that hasn’t mattered. People think of Back Bay Grill when they want to go out.”
On-again, off-again
The listing was on-again, off-again for two years. Initially, the price was above $2 million, he said. At that time, Landry said, he held about 20 showings. The building went under contract to sell just before the pandemic. But the deal fell through. The property was taken off the market over the summer, and then listed again in the fall for $1.25 million with the proviso that Matthews would continue the restaurant.
“We came on at $1.25 million and that’s what we got,” said Landry.
The second listing brought a lot of interest. In a three- or four-week period, he had about 50 inquiries, 10 to 12 in-person walkthroughs and at least two to three virtual showings. Queries came from owner/operators and from people looking to flee large cities for a smaller one. Interest came from Boston, New York City, Austin and even a chef from Paris who looked at it through a virtual showing.
“It was busy,” said Landry.
Right price, right time
Matthews said the time was right to sell the building.
“I’ve been trying to find the right price and the right time,” he said.
Matthews, a native of Kennebunk, received his degree in culinary arts from Newbury College in Boston, then went on to work with the White Barn Inn in Kennebunkport, according to his bio.
That was followed by a year with the Inn at Little Washington in Virginia before returning to Maine, where he became sous-chef at the Back Bay Grill. He became executive chef in 1997 and bought the restaurant business from owner Joel Freund in 2002.
Since then, the grill has received of the Wine Spectator Award every year since 1998. In 2001, Matthews was invited to the James Beard Foundation to participate in the Discovery Series.
The building itself had been divided into three condominium units. After buying the restaurant business, Matthews bought the unit it was in and subsequently bought the two upper-story residential units.
The location, he noted, isn’t one that passerby would necessarily find by accident.
“I don’t know how it’s ended up working out so well for us over the years,” he said. “You pretty much come here on purpose.”
During the pandemic, the grill limited its indoor seating and implemented a fixed-price menu in order to get a handle on the amount of sourcing and sales it would need to make it through the challenging time.
“We hung on until right after New Year’s,” he said. “Then we decided it was time to take a break.”
He reopened the restaurant in April at about half his normal staff.
Remote work
The buyer, Joël Mangan, has visited Portland with his wife for at least the past six years, usually in the summer, because they have a good friend in the area.
“We love coming there,” he said. “It’s a summer vacation spot for us.”
Both are in the tech industry: Mangan is executive director of IBM’s P-TECH initiative, which provides high school students from underserved backgrounds with academic, technical, and professional skills and credentials needed for STEM jobs, according to its website. His wife works for a New York data company.
“When this property came up, it was a great investment opportunity for us,” he said.
The couple began thinking about leaving the city about midway through the pandemic. The ability to work remotely helped broaden possibilities without having to change jobs.
“Both of our employers were open to allowing us to work anywhere in the same time zone,” he said.
They also realized they wanted to be in a much smaller community with better access to the outdoors.
“Then this property came on the market,” he said. “It’s a great property for us to move into because it has both the living space and the commercial space. That restaurant is a Maine institution.”
Most Recent
Most Recent
0 Comments