Courtesy / Porta & Co.
The buyer of 653-655 Riverside St. in Portland, two buildings totaling 19,260 square feet and a paved parking lot on 2.59 acres, found the investment attractive as a long-term hold.
Updated: March 25, 2024
Portland developer Reveler fulfills 1031 exchange with 2 property deals
Courtesy / Porta & Co.
51-67 Hanover St. in Portland, a 14,400-square-foot mixed-use building on just under half an acre, was part of a 1031 real estate exchange.
Reveler Development fulfilled a 1031 exchange with the purchase of two properties from the same seller.
Reveler bought 51-67 Hanover St. in Portland from HAL LLC and 63 Hanover LLC for $4.3 million.
Joe Porta and Vince Ciampi of Porta & Co. represented both the buyer and seller in the transaction.
Reveler closed the same day on the purchase of 653-655 Riverside St. in Portland from 655 Riverside LLC for $2.7 million.
Ciampi and Kimberly Veilleux of Porta & Co. represented the seller and Porta represented the buyer in the deal.
Reveler is a real estate investment, development, construction and management company in Portland.
The limited liability companies are owned by Rob Barrett.
Barrett is the founder of Barrett Made, an architecture and construction firm in Portland; KCMF, a maker of kitchen, closet, millwork and furniture projects in Westbrook; and the Public Works, a coworking and event space at 52 Alder St in Portland; and is part-owner of a nonalcoholic brewery called Kit NA Brewing.
Barrett retains a leaseback on both the Hanover Street and the Riverside Street properties.
51-67 Hanover St.
51-67 Hanover St., in West Bayside, is a 14,400-square-foot mixed-use building on just under half an acre, plus a third of an acre paved parking lot.
The deal came about when Porta & Co. was helping Reveler find real estate to fulfill a 1031 exchange.
A 1031, or “like-kind,” real estate exchange is a tax benefit named after its IRS section code that allows an investor to put off capital gains tax from a sale by investing the money into a similar property.
The Hanover Street property was an off-market transaction.
The $4.3 million price tag reflects trends for the West Bayside neighborhood, where rising lease rates for retail space are starting to meet or exceed other parts of the peninsula, said Ciampi.
“It’s a popular area for retail and for residents as well,” he said. “In general, that neighborhood has seen quite a bit of activity.”
Barrett Made occupies 65 Hanover St.
653-655 Riverside St.
653-655 Riverside St. comprises two buildings totaling 19,260 square feet and a paved parking lot on 2.59 acres.
Situated along a prominent corridor, the buildings have multiple tenancies catering to industrial users and offered a compelling proposition characterized by its safety and low risk, said Veilleux.
“This made it attractive for the buyer seeking an investment that would be a secure and long-term hold strategy,” she said.
Building 1, built in 1994, is occupied by one tenant and by Barrett Made.
Building 2, built in 1999, is fully occupied by three tenants, including an industrial automation company called Bulldog Automation and a candy-making company called Candy Manor.
The property was listed on the market.
“We were able to get creative and find a mutually beneficial resolution for both parties, facilitating an investment opportunity for a 1031 exchange, while concurrently allowing the seller—our client—to retain occupancy and generate capital for alternative ventures,” said Veilleux.
As part of the leaseback, Barrett Made agreed to complete renovation of an upstairs office space.
Reveler activities
Reveler, founded as Tom Watson & Co. in 1993, has 2,000 housing units in Greater Portland and Wilmington, N.C., and another 2,000 in construction or planning.
The company's Maine projects include a mixed-use property called the Armature in Portland’s West Bayside neighborhood, a historic rehabilitation at Riverdam in Biddeford and four developments together called the Levee in Biddeford.
The 1031 was initiated last fall with the sale of four multi-family buildings totaling 40 units on Danforth Street in Portland for $6.5 million, said Watson.
The deal with Barrett came about naturally as near-neighbors on Hanover Street—Reveler has apartments and retail units completed or in development at the Armature at Hanover Works on 52 Hanover St. and at Hanover Works on contiguous 82 Hanover St.
51-67 Hanover is across the street from the Armature.
Overall, Reveler is busy.
Watson said Hanover Works has been leased up. About 65 of the Armature’s 170 units have been leased since it went online last November.
Elsewhere in West Bayside, the city approved a master plan for Reveler's multi-building portfolio and parking garage bought for $45 million in 2022.
The plan for development calls for 800 units of rental housing in Portland’s West Bayside neighborhood, to be developed over 10 years.
Watson called the plan “a work in progress.”
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