Courtesy / Maine Realty Advisors
The building was built in 1974 for Northern New England Telephone Co.
May 9, 2021
Portland building anchored by Consolidated Communications sells for $11.75M
Courtesy / Maine Realty Advisors
A national investor bought a Class B office building (foreground), with plenty of parking, that's leased to national broadband provider Consolidated Communications.
A Class B single-tenant office building in Portland leased by Consolidated Communications sold for $11.75 million to a national investor with Maine roots.
5 Davis Farm LLC bought 5 Davis Farm Road from Pizzagalli Properties LLC in a deal brokered by Josh Soley of Maine Realty Advisors and Chris Adams and Jim Gibson of Stan Johnson Co.
The three-story, 80,683-square-foot building was originally constructed in 1974 on 18.3 acres. It has 451 parking spaces. The property has experienced several improvement projects over the last decade. Adjacent to Interstate 95, it’s located 15 minutes northwest of downtown Portland.
Pizzagalli Properties is a real estate development and property management company headquartered in South Burlington, Vt.
Communications roots
“The property was originally developed by Pizzagalli Properties in the 1970s as a build-to-suit for the Northern New England Telephone Co.,” Adams who represented the seller, told Mainebiz by email.
Adams is an associate director in the Dallas, Texas, office of Stan Johnson Co., a commercial real estate investment sales brokerage firm headquartered in Tulsa, Okla.
“With recent tenant upgrades completed [handled directly by the tenant] and a recent lease renewal by this very longstanding tenant, a good opportunity was presented for the owners to sell,” Adams said. “This is a meaningful facility for the tenant, which has a long history of occupancy. In recent years, they have invested significant capital into facility updates.”
Improvement projects over the last decade include a new roof in 2010, new insulation, repairs and maintenance in 2018, and an additional $3.4 million invested into the facility in 2018 and 2019, according to marketing information.
A six-week marketing campaign resulted in several offers; a handful of those were competitive.
“Offers came from buyers throughout the country,” Adams said. “The eventual buyer’s familiarity and prior investment in the Portland area, along with their willingness to tour the property early, were important considerations for their selection.”
High-yield lease
The property was marketed as an investment opportunity with a high-yield, long-term, triple-net lease.
A triple net lease agreement requires the tenant to pay all property expenses in addition to rent and utilities.
The building serves as Consolidated primary administrative office.
Consolidated Communications Holdings Inc. (NASDAQ: CNSL), headquartered in Mattoon, Ill., is a top-10 broadband provider in the U.S.
Soley said the buyer is a long-time client with an interest in the high-end office market and attracted to Consolidated as the anchor tenant.
“This is strictly an investment play,” he said.
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