Courtesy / Creative Beginnings
Creative Beginnings, which moved into new-build warehouse space at 2401 Broadway in South Portland, is making the most of the high ceilings and open space at the new site.
December 23, 2020
South Portland industrial site develops as warehouse space needs evolve
Courtesy / Danielle Lape, KRE Brokerage Group
The new warehouse building at 2401 Broadway in South Portland recently welcomed its first tenant, Creative Beginnings day care center. The three-warehouse site is seeking light industrial tenants for its space.
By Maureen Milliken
A three-warehouse development that began three years ago on Broadway in South Portland still has a focus on light industrial, but as build-out continues, it's attracting tenants outside of that sector.
When developer Rob Plummer bought the 9.85-acre site at 2401 Broadway in December 2017, it had been on the market for a decade, a holdover from the Great Recession. At the time, he planned three warehouses geared toward the light industrial market.That's still the plan, but in a tight market for wide-open space, different types of tenants are emerging.
In August, day care center Creative Beginnings moved into 12,000 square feet in the site's second building. The center, which had operated nearby at 245 Gorham Road in Scarborough for 14 years, joined Heavy Machines Inc., which moved into a free-standing 6,000-square-foot building that was the site's first construction.
A 1,500-square-foot unit is available in the Creative Beginnings building, and Plummer plans to add another 10,000 square feet. The third building, with 25,000 square feet, will break ground in the next three to six months.
Justin Lamontagne, of NAI The Dunham Group, told Mainebiz that industrial space is in high demand and alternative users, like day care centers, fitness centers and cannabis growers, are part of the mix.
"There are a lot of alternative users that are trying to compete for industrial space," he said this week. But he added that, with traditional users also in the market, landlords can pick and choose what's best for their property.
The Broadway property is actively seeking light industrial tenants, Plummer said.
Danielle Lape, of KRE Brokerage Group, who is marketing the property, agreed. "Light industrial uses are prime [tenant] candidates," she said. "Those in need of higher-end industrial space with an office component, or perhaps small retail area for some customer interaction."
One of the biggest selling points is the property's location, which is on the South Portland-Scarborough line, where Broadway turns into Mussey Road. It's visible to Interstate 295, which runs just north of the property, and is less than a mile from exits not only to I-295, but also to the Maine Turnpike.
Plummer said the location, as well as availability of natural gas and proximity to Portland and Westbrook, are what appealed to him when he bought the property for $1.275 in December 2017. He and Lape said that's also what they expect to appeal to tenants.
Lape said the "prime location" is about more than just the easy access to the highways. It's also about the area, which is near the Maine Mall and surrounded by other light-industrial and office businesses. She also said the fact that the area has more of a suburban feel than an industrial-park feel is a plus, and it also adds access and visibility that an industrial park may not have.
And, she added, Plummer has done a nice job developing the property. "The site is attractive, well-lit, well-managed and well-landscaped with backlit street pylon signage and great visibility," Lape said.
She said all that makes it perfect for light industrial businesses. "It is perfect mix of industrial and office space for tenants in need of presence for their business and not just rental space."
'So much we loved'
The elements that make it attractive for light industrial tenants also made it attractive to Kerry Falagario and Nichole Page, owners of Creative Beginnings. The center had outgrown its Gorham Road space, but the owners wanted new space close by so it would be less disruption for their clients.
"There was so much we loved about the location," Falagario said. "It was so close to our current center that we knew families wouldn't have an issue with our move. We met with Robbie in 2019 to go over our dreams for the building and he made it come true."
Falagario and Page designed the layout, and Plummer took it from there. "Being able to build from the ground up was a dream come true," Falagario said.
"The fact that we were able to open in a pandemic is honestly a miracle," Falagario said. "We had setbacks with everything, and it pushed us out much later than we had hoped."
She said their goal was to have most of the summer to put the school together, but they had a week and a half. "I still don't know how we did it."
Plummer added a fenced outdoor play area, a central gymnasium, perimeter classrooms for infants to pre-K, a large kitchen for meal prep, and mezzanine level office space for the day care center, as well as several restrooms and a centralized secure reception area for parents.
"It was complicated and time-consuming at times, but the end product was well worth it," he said.
Falagario said they're not concerned about being in an "industrial" location.
"The location is so convenient and any business would be lucky to start up here," she said. "We would love to share this beautiful location with other businesses that would complement ours."
Image / Google Maps
2401 Broadway in South Portland, shown by the red place-marker, is touted by the developer and broker for its location.
'A steady flow of interest'
When he bought the site, Plummer told Mainebiz he saw a need for light industrial space in the are. That demand hasn't waned southern Maine's hot industrial market, though, he said, the sector isn't immune to the uncertainty caused by the pandemic.
"We have had a continuing steady flow of interest in this development and expect it to continue," he said.
Plummer is no stranger to industrial development. The owner of Eastern Excavation, which he opened in 1991, he specializes in site work. About a dozen years ago, he created Plummer Properties LLC and branched into industrial warehouse development. He owns several other properties, including at 81 County Road, in Westbrook.
The property languished on the market largely because of the Great Recession. Plummer snatched it up when the commercial real estate market began to heat up again.
Now, the market is facing another crisis, but Lape said real estate is poised to weather it.
"The industrial market, while struggling with delays like the rest, has stayed cautiously steady," she said. "Some companies are contemplating partial closures and considering automation technologies if employees are unable or unwilling to return to work, but those automated systems will still need a roof over their head."
She said while office space may have more of an adjustment because of social distancing guidelines and smaller spaces, the industrial spaces — the 2401 Broadway buildings have 22-foot ceilings — are wider open and can adjust.
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