🔒Vermont investor acquires Brunswick industrial building for $7.4M

A Burlington, Vt., investment and management company acquired a 105,000-square-foot industrial building in Brunswick for $7.4 million.

The building at 43 Bibber Parkway was 93% leased to tenants in the architectural signage manufacturing and specialty retail industries.

“We have already signed up a tenant to take the majority of the vacancy and are currently in negotiations with a tenant prospect to take the remaining vacancy,” said Joseph Engelken, a partner with Queen City Development Group.

The group acquired the property from Bibber Properties LLC.

Sylas Hatch, TC Haffenreffer and Frank O’Connor from the Dunham Group brokered the sale.

Proximity to Boston

Built in 1996 and renovated in 2007, 43 Bibber Parkway is a single-story industrial building on 7.78 acres in Brunswick Industrial Park, adjacent to Route 1 less than a mile from I-295, approximately 15 miles from I-95, eight miles from Brunswick Executive Airport and 25 miles Portland International Jetport.

The location was considered well-situated to take advantage of the southern Maine market as one of New England's most supply-constrained industrial corridors, attracting tenants and capital seeking proximity to Greater Boston with access to an established logistics network and a historically low-vacancy market environment, according to a news release. Demand includes tenants seeking lower-cost alternatives to southern New Hampshire and Greater Boston.

Other advantages of the location include Brunswick as a center for innovative businesses and advanced manufacturing in Maine, with economic development anchored by Bowdoin College and Mid Coast-Parkview Health and major employers in surrounding communities including General Dynamics Bath Iron Works and L.L. Bean in Freeport.

Features include 24-foot clear heights, seven loading docks, a drive-in door and 80 surface parking spaces.

$6.9M loan

Chicago-based JLL Capital Markets (NYSE:JLL), led by managing director Amy Lousararian and associate Hunter Cuthbertson, arranged $6.9 million of the acquisition financing, working on behalf of Queen City to secure a five-year, fixed-rate loan through Bangor Savings Bank.

"Queen City Development Group has local expertise as an operator in northern New England and 43 Bibber Parkway is a reflection of exactly the kind of asset their team knows how to source and execute on," Lousararian said.

Capital and tenant uprades

Queen City Development Group was founded in Burlington in 2019 with a focus on acquiring and managing investment properties throughout New England. It provides investment, property management, construction, development and design services across a portfolio of commercial and multifamily properties in Maine, Vermont and Massachusetts. Its construction services division mainly works in Vermont.

In Maine, Queen City’s partners collectively own about 380,000 square feet of space, said Engelken.

The total budget for the project — including transaction costs, capital expenditures and leasing expenses — is $8.9 million. Beyond the financing arranged by JLL, Queen City put together equity to cover the balance.

Plans to address capital expenditure needs and make tenant improvements to the building include installation of new lighting, heating and insulation where appropriate; and creating access from the driveway to a new loading door previously installed by the seller.

Queen City contracted Shearwater Property Management in Portland to oversee the work.

“We expect all improvements to be completed within the next 12 months,” said Engelken.