Courtesy / The Boulos Co.
The building dates back to the 1970s and is in good condition.
Updated: May 30, 2022
Portland real estate firm J.B. Brown & Sons makes another investment in Bangor
Courtesy / The Boulos Co.
Behind-the-scenes sleuthing helped Portland real estate firm J.B. Brown & Sons find an off-market deal with a 200,000-square-foot industrial distribution facility in Bangor.
Some behind-the-scenes sleuthing allowed the Portland commercial real estate and asset management firm J.B. Brown & Sons to find an off-market deal in Bangor that would allow it to fulfill a 1031 exchange requirement.
“Our business is all about data gathering and information gathering and we are constantly building a database to put pieces of a puzzle together,” said Drew Sigfridson, managing director of the Boulos Co., who brokered the transaction.
J.B. Brown & Sons purchased a fully leased 200,000-square-foot industrial distribution facility at 70 Bennett St. from Penobscot Logistics Solutions for an undisclosed price. The building dates back to the 1970s.The building is in good condition and there are no immediate plans for further investment into it, said Sigfridson.
Cash flow
Sigfridson said he uncovered the off-market investment opportunity through contacts with the seller.
J.B. Brown & Sons had a 1031 exchange requirement and was looking to acquire property in different locations throughout Maine.
The property was a strategic acquisition to purchase a high-quality industrial facility at a good basis with existing cash flow, while also acquiring abutting land for a future development project. There are no immediate plans for the land’s development, said Sigfridson.
J.B. Brown & Sons is one of the oldest and largest property owners in Greater Portland. The company owns, leases, and manages commercial properties including office, warehouse, manufacturing, retail, parking lots and mixed-use buildings.
The seller had owned 70 Bennett St. for about a decade, said Sigfridson. The seller occupied part of the building and leased out space to tenants.
The seller eventually didn’t need as much space for themselves and decided it was time to sell, since industrial space is going for premium prices.
Behind-the-scenes
“On the one side, there are buyers or commercial companies — tenants — with needs and on the other side there are property owners, developers and landlords also with certain requirements,” said Sigfridson. “Oftentimes, these two sides do not want their interests or requirements publicly known and we are working behind-the-scenes to gather the information and ultimately put two parties together to consummate a transaction and solve each others’ needs.”
Sigfridson said he had been discussing with the seller the property’s potential value for over a year. On the buyer side, he had offered them several options for properties that didn’t meet their criteria.
“In the end, the more knowledge and data we can gather, we are more capable in serving our clients and customers and adding value to their respective businesses,” he added.
J.B. Brown & Sons first entered the Bangor market in 2018, when it bought an 88,478-square-foot, six-story Class A office building at 80 Exchange St.
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