A single-tenant, four-property industrial portfolio totaling 112,392 square feet sold to buyers who plan to hold onto the portfolio as a long-term value. “It’s a win for the buyer and sellers,” said one broker:
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A single-tenant, four-property industrial portfolio totaling 112,392 square feet sold for $8 million to buyers who plan to hold onto the portfolio as a long-term value.
N20KK LLC and M&M Portfolio Holdings LLC bought the four properties — at 470 Odlin Road in Bangor, 29 Landry St. in Biddeford, 56 Airport Road in Waterville and 22 Verti Drive in Winslow — from DCR Properties of Maine LLC.
TC Haffenreffer, Sylas Hatch and Greg Hastings from the Dunham Group brokered the transaction.
“It’s a win for the buyer and sellers,” said Haffenreffer:
HVAC distributor
The largest of the properties is 22 Verti Drive in Winslow. The 46,236-square-foot facility, on 6.05 acres, includes 3,436 square feet of office space, 35,000 square feet of distribution and manufacturing space and 7,800 square feet of warehouse space. Built in 1989, it was marketed as an excellent investment or owner-user opportunity with easy access to major transportation routes.
The Bangor property consists of 19,276 square feet on 1.9 acres. Biddeford is 26,000 square feet on two acres and Waterville is 20,880 square feet on 1.55 acres.
The properties are leased to BellSimons Cos., a Glastonbury, Conn.-based HVAC wholesale distributor and a subsidiary of mSupply, a supplier of repair parts and equipment based in St Louis.
The buyers are in the process of closing on a fifth industrial property leased to BellSimons, at 62 Academy St. in Auburn, said Haffenreffer. The Dunham Group is handling that transaction as well.
The Winslow and Auburn properties were listed on the market. The buyers picked up the Bangor, Biddeford and Waterville properties as off-market deals to complement the Winslow and Auburn properties.
Lease negotiation
The seller decided the time was right to unload the real estate, said Haffenreffer.
“We brought them quietly to a local investor, who renegotiated the leases with the tenant,” he said. The leases were due to run out in December.
For one of the purchasing limited liability companies, the deal is a partial 1031 real estate exchange — a tax benefit that allows an investor to put off capital gains tax from a sale by investing the money into a similar property.
Overall, the buyers plan to hold onto the portfolio as a long-term value resulting from the renegotiated leases, with a plan to make significant investment into improvements at all of the properties, he said.
