Renovations lure tenant to Oakhurst's real estate project
Oakhurst Dairy on Forest Avenue is getting into the commercial real estate business after purchasing the 20,000-square-foot building adjacent to its corporate headquarters for more than $2 million.
Formerly the home of World Over Imports, the building is being renovated into six retail units. Distinctive Tile & Design just signed a five-year lease with a five-year renewal option to occupy one of the 2,500-square-foot spaces, according to Tom Brigham, the CFO of Oakhurst Dairy. Oakhurst tore down a portion of the building to make room for more parking.
"The reason we bought the property is it was adjacent to us and it has strategic value" for future expansion of the dairy business, Brigham says. "When the opportunity came up, we just couldn't pass that up."
Oakhurst completed the sale in May 2009.
The retail units range in size from 1,500 to 2,500 square feet and are being leased at $12-$15 per square foot. NAI The Dunham Group in Portland is brokering the property. Brigham says interest has been building as the $500,000 renovation project progresses and that high-traffic counts, visibility from Forest Avenue and the close proximity to I-295 and the University of Southern Maine campus will help Oakhurst lease the units by this fall.
Brigham says Oakhurst hopes the lease income will help recoup the cost of purchasing and renovating the building.
Larry Stoddard, owner of Distinctive Tile & Design, says he expects to relocate the store from its current 288 St. John St. location to the Forest Avenue property in September. The company's three other stores are located in York, Yarmouth and Rockland.
Oakhurst Dairy employs 240 people and has annual sales of more than $110 million, according to the company's website. The company sells and distributes Maine dairy products all over northern New England and eastern Massachusetts.
Most Recent
Most Recent
Comments