Courtesy / Peter G. Morneau
The office space at front is separated by a full kitchen from the rear residential space.
December 8, 2022
Portland developer builds novel live-work units
Courtesy / Peter G. Morneau
At 482 Congress St., the tall building at center, developers completed the conversion of the third floor to two live/work units and have two more units underway on the second floor.
The property is located in the heart of Portland's financial district and near the Old Port. Amenities include water views from upper-floor suites, exposed brick and beams and large windows with natural light. There’s a 40-space parking lot.
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Remote and hybrid work have many companies rethinking how much and what type of office space they really need.
In response, a Portland developer has reimagined a new type of office and living space at 482 Congress St.
“Since the pandemic and its effect on the classic office market, we have implemented a residential conversion of some office suites to luxury loft-style live-work units,” Timothy Leahy told Mainebiz.
Leahy and his brother, Christopher Leahy, bought the building in 2016 and have since performed numerous improvements.
Two of the live-work units are complete and two more are expected to be completed in the coming months.
“When the pandemic hit, I started thinking about creating live-work spaces, not knowing exactly what the standard office use would be moving forward and also knowing there wasn’t particularly high demand for office space,” Leahy said.
The Leahys, then based in New York City, bought 482 Congress St. in Portland for $5.4 million.
The 54,180-square-foot building comprises ground-floor retail and upper-story offices.
The brothers own 482 Congress St. under the company name Center Congress LLC and also have a property management firm called MRM Equity, which is based at the same address.
Natives of Brooklyn, N.Y., they separately own other commercial and residential properties in Maine and elsewhere. The 482 Congress St. was their first joint acquisition.
The purchase came about when Christopher Leahy was looking at the property and Timothy Leahy was looking to invest outside of New York City.
“So I was invited in on the deal,” said Timothy Leahy.
The structure is essentially two historic buildings joined together: The back building, which has an entry on Center Street, was built in 1894, and the front shortly thereafter.
The property is located in the heart of Portland's financial district and near the Old Port. Amenities include water views from upper-floor suites, exposed brick and beams and large windows with natural light. There’s a 40-space parking lot.
In 2016, the building was mostly occupied but hadn’t been well maintained, said Leahy.
“It was a bit of a deal when we purchased it because it needed some work,” he said. “We had to start with the basics.”
Improvements since then included replacing about 40% of the HVAC equipment; redecorating the lobby and the second- and third-floor common areas; renovating common bathrooms; clearing out the basement; redesigning the Center Street facade and entrance to accommodate retail tenants on the first floor and basement and new security measures at the entrance.
In addition, the parking lot was repaved in 2019, and over the past year the building got a new roof, a major elevator drive unit and repairs to the boiler.
The conversion of the second and third floors on the Congress Street side of the building into the live-work units has been ongoing as well.
The idea, said Leahy, is that each unit opens onto space that can be used for professional purposes and accommodate employees and clients. The other side of each unit is built for residential use and includes a bedroom, 1.5 baths and a walk-in closet. A full kitchen is positioned to be shared by both sides.
Courtesy / Peter G. Morneau
The entry opens onto a large space that can be used for professional purposes.
The units are designed with features such as high ceilings, hardwood and tile floors, premium finishes, double-pane windows and a loft layout.
“This is a true live-work,” he said. “You have one address, both commercial and residential, through one door.”
Of the two units completed, the larger is 1,830 square feet and the smaller is 1,590 square feet. Rents haven’t yet been determined, said Leahy.
The live/work units make up about 20% of the building, which is otherwise occupied by the current tenants, said Christopher Leahy. The plan is to continue to renew leases for tenants who wish to remain, but convert units that become vacant through attrition, he said. Some tenants have had offices in the building for decades, he noted.
“Even with the conversion, we look at it as an office building,” he added.
The conversions and improvements have cost just over $2 million to date.
The project has been financed by a loan from Bangor Savings Bank and reinvesting rent revenue.
The Leahys contracted Jasmin Moulton with Legacy Properties Sotheby’s International Realty to handle the leasing.
“I think it’s the future of office space on the peninsula,” said Christopher Leahy.
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Anonymous
December 11, 2022
As a case manager I hate to read about more housing that includes the word "luxury". Our population in Portland that really needs housing lives at or below the poverty level.
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