Purchase of long-vacant Waterville mill building seen as development key

Photo / Maureen Milliken The Lockwood Mill, at the intersection of Spring and Water streets in Waterville, was purchased for $1.5 million by North River Co., which owns the adjacent Hathaway Creative Center, also a former mill.

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By Maureen Milliken

Two long-vacant mill buildings at a key spot in Waterville's reinvigorated downtown has been bought for $1.5 million by the same company that purchased the adjacent Hathaway Creative Center two years ago.

New York-based North River Co. bought the buildings that once housed the Lockwood Mills, a total of 182,000 square feet, from Hathaway Holdings LLC, owned by Paul Boghossian. Boghossian also owned the mill that housed the Hathaway Creative Center, which North River bought in February 2017 for $20.15 million.

The Lockwood buildings and the Hathaway total 412,000 square feet of developed and about-to-be-developed retail, office and residential space at a key intersection in the city, where U.S. Route 201 and Main Street meet. The intersection is slated to be reconfigured, making the buildings a vital link to downtown redevelopment, those involved in the purchase, as well others involved in city development, said Tuesday.

Christopher Flagg, president of North River, said the redevelopment of Waterville's downtown "created an opportune environment in which to leverage our investments in Hathaway Creative Center to realize the potential of putting the entire Lockwood Mills complex back together."

“We are excited to breathe new life into these historic buildings and welcome residents and visitors to shop, eat, work, recreate and live alongside the beautiful Kennebec River in downtown Waterville," he said in a news release.

North River plans a mixed-use development at the site, with construction starting by fall of 2020.

Courtesy / Central Maine Growth Council

An aerial view shows the Hathaway Creative Center, left, with the Lockwood Mill buildings at the right. The site of Colby College's planned hotel is in the upper right corner.

'An incredibly important development'

The buildings are at the southern end of a $9.2 million roadway and infrastructure reconfiguration that will turn Main Street and Front Street, which both join Spring Street in front of the mill, into two-way routes after decades of being one-way.

The purchase and planned redevelopment of the long-vacant buildings is "an incredibly important development for the region's economic growth," said Garvan Donegan, director of planning and development for the Central Maine Growth Council, in the release.

The redevelopment of the mill buildings will help integrate the south end of Waterville into downtown, said Drew Sigfridson, manager director and partner for The Boulos Co., of Portland, which helped broker the deal for North River.

“A key component to the success of this redevelopment effort will be the attraction of commercial companies and retail uses to occupy the first two floors of the newly acquired property," he said. "We want to more fully integrate the commercial district of downtown Waterville with the riverfront mills and look forward to marketing these facilities to attract the right tenant mix into this area."

North River Co. has a solid Maine development history, including buying the Portland Square complex for $66 million in 2015, considered at the time the city’s biggest real estate transaction.

Last year, Christopher Pachios, a managing partner of North River, told Mainebiz the company was in Waterville "for the long haul ... we like the market."

The two Lockwood buildings are on 3.25 acres, and were built as a cotton manufacturing mill in 1873. Shirt manufacturer C.F. Hathaway & Co. moved into the buildings in the mid-1950s from another Waterville location. After Hathaway closed in 2002, the buildings were used by Central Maine Power Co. and Marden's discount stores for storage. Boghossian bought the buildings in 2006.

Photo / Maureen Milliken

The construction site for the Lockwood Hotel, being built by Colby College, seen in February, overlooks the Lockwood Mill, back center. The mill was bought by North River Co. and will be redeveloped.

'Changed the trajectory of the city'

The complex is across Spring Street from the site of Colby College's planned Lockwood Hotel, which will have outdoor restaurant patio space that overlooks the complex .

The Lockwood Hotel's name is a nod to the mill complex. Earlier this month, when the hotel's name was announced, the college said it draws on "Waterville's rich history of industry and innovation and signals the strength of the city's future."

Colby, in a June 4 news release, said the name is also a nod to innovation, citing the mill's designer, engineer Amos Lockwood, who used creative design to allow the buildings to withstand the movement and vibrations caused by the thousands of spindles required for textile manufacturing.

The Lockwood Mill complex, across Spring Street from the hotel site, "was the first major center of industry for Waterville and changed the trajectory of the city at that time," the Colby news release said.

Brian Clark, Colby vice president of planning, told Mainebiz Tuesday, "The promise of the redevelopment of Lockwood Mills is a very significant element of Waterville’s revitalization, which we see as inspired by the investments of Colby and many other private investors who have recognized the opportunities in Waterville over the last few years.

He said that having several hundred additional residents living downtown will bring added vibrancy to Main Street and support both existing and new businesses.

He also said the development will "create a bridge" from Colby's Lockwood Hotel across Spring Street to Waterville's South End, which will "provide new connections and opportunities for residents of the entire Lockwood Mills complex and the south end to engage with Main Street and fully participate in the increased activity and growing economy of downtown Waterville."

Photo / Maureen Milliken

The mill complex that includes the Lockwood Mill, right, and Hathaway Creative Center, left, seen on a late winter afternoon, are on the Kennebec River.

Good neighbor, great location

The gateway to the South End includes the Hathaway Creative Center, which was initially redeveloped by Boghossian over the past decade. It had 67 high-end occupied apartments and commercial space that was 80% occupied when North River bought it in February 2017 for $20.15 million.

"Hathaway Creative Center plays an important role in Waterville’s emergence as a health care, technology and knowledge-based hub," said the news release from the Growth Council.

The Hathaway's tenants include MaineGeneral Health, GenoTyping Center of America, Bricks Coworking & Innovation Space, The Waterville Brewing Co. and Hathaway Mill Antiques, among other businesses.

The council said the presence of the Hathaway Center and the Lockwood buildings' location, on the Kennebec River, will make them an economically attractive development.

"Alongside the opportunities for industry growth, the purchase of the Lockwood Mills buildings represents the reinvigoration of Waterville’s riverside assets as the city returns to the river to enhance its quality of life," the release said. "The redevelopment of the mill complex will enhance access to Waterville’s natural beauty and provides culinary, recreational, residential and retail amenities to enjoy alongside the river."