Westbrook, ME At a time when some investors understandably pause on new acquisitions to take stock of how COVID-19 will impact the way we work and live, industrial properties within Maine continue to trade hands. In one such example, Calare Properties Inc., a Boston based real estate operator, closed in May on 5 Bradley Dr. for $8.75 million.
“There seems to be this overarching sentiment in what you read that capital is sitting on the sidelines and hoping for better price discovery in coming months” said John Meador of The Boulos Company, who represented Calare on the acquisition. “I think that sentiment is too broad-brush. Across certain product types, there is no question that underwriting has become more difficult as we think of what structural shifts may or may not occur. However, for industrial product in Southern and Central Maine that consists of institutional specs such as 5 Bradley, capital and tenant demand has never been stronger.”
5 Bradley Dr. is a 126,072 s/f industrial building. Constructed in 1998 for Bindley Western Industries, a wholesale distributor of pharmaceuticals that was subsequently acquired by Cardinal Health, the property has 30’ clear height, 40’ X 50’ column spacing, an ESFR sprinkler system and heated and cooled warehouse space. In addition, the property sits on 14.72 acres, with approvals in place previously for an expansion of approximately 80,000 s/f. “It is tough to find a better industrial asset in our market. Calare was quick to realize that and put the deal under agreement” said Meador.
5 Bradley Dr. was listed for sale vacant by Harnden Commercial Brokers in December of 2019, and garnered attention from investors and users alike. Ultimately, Calare beat out multiple other parties for the deal, closing on the transaction in May.
The building was sold by Maine Olympia Properties, LLC. Olympia Sports, a Maine-based company that had been headquartered at 5 Bradley for close to two decades and was recently acquired by JackRabbit, vacated at closing. The building therefore represented some of the only vacancy in Southern Maine’s industrial market, which consists of 19 million s/f with 500,000 s/f of industrial demand at the time of sale as reported by The Boulos Company.
Given such strong fundamentals and the unique nature of the property relative to its peer group, Calare was in conversations with multiple groups interested in leasing the building. Ultimately, it was leased in its entirety to a medical diagnostics company also represented by The Boulos Company. “There’s a lot of action going on,” said Greg Boulos, who together with Samantha Marinko represented the tenant on the lease. “As tough as times are, deals are getting done, and market trends are encouraging. It’s not all bad news.”
Founded in 2003, Calare is a real estate operator focused on acquiring and managing warehouse, manufacturing, research and flex/office assets primarily in the Northeast. Their experienced team and fully integrated operating platform provides investment, asset management, leasing and property management expertise to drive performance at all stages of the investment process from acquisition through disposition. Calare has led the acquisition of over 18.5 million s/f of properties, representing $850 million in real estate transactions through funds, direct deals and a multi-asset portfolio.
The Boulos Company is a Maine and New Hampshire commercial real estate firm dedicated to serving owners, investors, and tenants, blending Maine and New Hampshire market knowledge with a global network. Founded by Joseph Boulos in 1975, the firm has grown to include more than 30 Portland, Maine and Portsmouth, New Hampshire-based employee