July 23, 2024 at 6:24 am · Shelly Clark · Comments Off on The Right Equation for Responsible Development: Spotlight on Maine Savings Amphitheater (Bangor)

The Right Equation for Responsible Development: Spotlight on Maine Savings Amphitheater (Bangor)

Each year, the Maine Real Estate & Development Association (MEREDA) recognizes some of the state’s most “noteworthy and significant” real estate projects, completed in the previous year. The exemplary projects from across the state, completed in 2023, not only embody MEREDA’s belief in responsible real estate development, but also exemplify best practices in the industry, contributing to Maine’s economic growth by significant investment of resources and job creation statewide.

This year, MEREDA honored projects from Portland to Gardiner to Presque Isle, with each receiving special recognition at MEREDA’s 2024 Spring Conference on May 15th.

In a multi-part series exclusive to the Maine Real Estate Insider, we’ll provide an up-close look at the most notable commercial development projects of the past year that are helping to fuel Maine’s economy in terms of investment and job creation. MEREDA is proud to recognize responsible development based upon criteria including environmental sustainability, economic impact, energy efficiency, difficulty of the development, uniqueness, social impact and job creation.

MEREDA’s 2023 Top 7 recipients include:

University of Southern Maine Portland Commons Residence Hall and McGoldrick Center for Career & Student Success, Capstone Development Partners (Portland)
Maine Savings Amphitheater, Waterfront Concerts, LLC (Bangor)
Phoenix Flats, Community Housing of Maine (Portland)
Homeless Services Center, Developers Collaborative (Portland)
Northeastland Hotel, Haley Ward, Inc. (Presque Isle)
Johnson Hall Opera House, Johnson Hall Redevelopment, LLC (Gardiner)
The Armature at Hanover Works, Reveler Development (Portland)

Please join us this week in celebrating Maine Savings Amphitheater.

MEREDA: Describe the building and project.

Waterfront Concerts completed their vision of a best-in-class Amphitheater making it the largest and most modern music venue North of Boston. With its completion, Bangor, Maine, in the summer, has solidified its position in the Northeast as a premier concert destination for years to come. Additions include, ten suites, five premium clubs, ADA improvements, improved concessions, terraced seating and two hundred and fifty-two new bathrooms. Their team worked to upgrade every surface, every seat, every touch point for their consumers. They were incredibly careful to use Maine made products and contractors in every aspect of the build where they could to maximize the impact of the build locally.

MEREDA: What was the impetus for this project?

Our teams desire to have world class entertainment and economic development in the Bangor region where most of us grew up.

MEREDA: That sounds like quite a process. How long were you in the planning stages before construction started?

Visioning sessions began with staff from Waterfront Concerts and Ervin Architecture in the winter of 2018.

MEREDA: Tell us about the most challenging aspect of getting this project completed.

Covid. We started the project at the completion of the 2019 season. We paused this project in July of 2020 to protect our staff’s jobs. We resumed construction when mass gatherings were allowed in 2021 in an effort to hold four concerts in 2021. We resumed full time construction in the fall of 2021 and worked every day that there wasn’t a concert and during a few concerts if the artist allowed it until completion in May of 2023 when the space was substantially complete.

MEREDA: Something unexpected you learned along the way was….

We all know the term “supply chain”. Managing this is difficult in construction. The pandemic made it much more difficult.

MEREDA: Now that it’s complete, what feature of the project do you think makes it the most notable?

Fans alike love the improved surfaces and overall improvement of the concert experience, especially viewing from each seat. The ladies love the 252 working bathrooms (66% are ladies rooms) and the attendants that staff them.

July 16, 2024 at 6:00 am · Shelly Clark · Comments Off on MEREDA Releases The MEREDA Index Report for 2023

MEREDA Releases The MEREDA Index Report for 2023

MEREDA has released its 18th edition of the MEREDA Index. As a key economic indicator for Maine, the MEREDA Index measures the pulse of the state’s real estate industry and is the leading way our industry tracks changes in Maine’s real estate markets.

A measure of real estate activity designed to track changes in Maine’s real estate markets, the Index is a composite of nine seasonally adjusted measures reflecting both new development and transactions involving existing properties and it covers both the commercial and residential markets statewide. This most recent edition covers the year 2023. The MEREDA Index was tabulated by economist Dr. Charles Colgan and comes in at 114.1.

This latest edition of the MEREDA Index showed a decline of 1.5% between 2022 and 2023. The driver of the decline was the residential index, which declined 11.3% as interest rate increases being driven to offset inflation began to seriously bite into real estate markets. The commercial and construction components of the index both increased, by 23.5% in the former case and 2.3% in the latter case. These increases were not sufficient to offset the drops in residential activity.

To download a copy of the full report, please click here.

July 9, 2024 at 6:00 am · Shelly Clark · Comments Off on Listen Up! The July 2024 Episode of the “MEREDA Matters” Podcast is Now Available!

Listen Up! The July 2024 Episode of the “MEREDA Matters” Podcast is Now Available!

A Conversation with Mandy Reynolds and Sean Ireland from The Grant

From The Grant, Sean Ireland, a Principal at Windward Development, and Mandy Reynolds, a real estate development consultant, sit down with MEREDA President Shannon Richards for the first episode in Season 2 of MEREDA Matters – the podcast that puts you in the room with the people who are driving responsible development in Maine.

Ireland, who grew up in Phippsburg and Cumberland, talks about why he chose to work in Bath, the historic transformation happening there, and how his work focuses on small projects that can make a big difference. Reynolds, who grew up in Berwick, had never been to Bath until she started working with Ireland on development projects.

The pair go on to discuss their work on the Grant Building project, which began during the pandemic when the community needed a safe space to gather with high-speed internet capabilities and has become a mixed-use building with their co-working space Union + Co, four residential units, and three additional commercial spaces. Ireland and Reynolds share how this project represents a culmination of their principles for good development and give insight into how they made the project come together through a historic tax credit and the grit to self-perform the majority of the work.

The group also discusses Ireland and Reynolds’s next project, a redevelopment of the Stinson Seafood Cannery into the first purpose-built electric marina in the nation. Looking for inspiration for the future, the pair is taking a year-long working sabbatical to travel around the world to learn more about innovative community development projects and the Blue Economy.

What has had the biggest influence on Sean and Mandy? Listen to the episode to find out! https://mereda-matters.simplecast.com/

Catch up on past episodes while you’re there!

The MEREDA Matters podcast is sponsored by Bangor Savings Bank and Clark Insurance, A Marsh & McLennan Agency LLC Company. A new episode will be released each month and each will feature new voices from the real estate and development industry.

July 2, 2024 at 6:00 am · Shelly Clark · Comments Off on In Maine, Evolution Drives Economic Prosperity

In Maine, Evolution Drives Economic Prosperity

By: James W. Dinkle, Executive Director, FirstPark

Maine’s economy is strong, and the proof is in the proverbial pudding. In fact, our state economy is one of the strongest in the country.

According to the most recent data, Maine’s economic output grew faster than the rest of New England at the end of 2023, with a massive uptick in goods and services. In the fourth quarter of last year, the output of goods and services in Maine hit an annual growth rate of 4.4 percent—the highest in the region and even above the national average (3.4 percent).

Not only that, but take-home pay is increasing in Maine, with personal income seeing a 4.7 percent growth rate. In the income department, only Rhode Island finishes higher in New England.

Why the jump in economic output and personal income? There are many factors, but various sectors of the Maine economy are growing. Industry is thriving, including the manufacturing sector. The subsidies for US-based manufacturing via the Inflation Reduction Act puts Maine in a unique position to benefit from homegrown manufacturing for years to come.

One of the key factors is evolution on a statewide scale. Maine-based companies and entire industries are innovating, hiring, and expanding. From research and development to new sales and marketing techniques, economic growth is only possible when businesses large and small take advantage of new opportunities and find ways to enter new markets. Prospects become clients and customers, while new goods and services flood the marketplace. And that is happening here.

Maine is relentlessly competing for residents, especially business owners, entrepreneurs, and innovators who diversify and make our economy stronger.

While the state saw massive population growth because of the COVID-19 pandemic, it is important to keep selling the Maine way of life. This means selling places outside of Portland that are still viable destinations to live and work. People need to understand that our state is much, much more than “Vacationland,” although Mainers certainly find time to play, too.

As the saying goes, we are all in this together. I have worked in economic development at the state, regional and local levels for decades, and Maine has plenty to offer. Banding together, we can promote Maine’s strengths, such as quality of life, access to recreation, the four seasons and a bustling economy, too. Our state is a place for golf and skiing, but also business expansion, job creation and financial security. The same goes for offshore wind projects, sustainable energy initiatives and life sciences, plus shipping, receiving and manufacturing, to name just a few sectors.

Let’s not forget Maine’s potential. I serve as executive director of FirstPark in Oakland, so I see the value of “economic development” firsthand — not only the state’s recent accomplishments, but also the room for growth and business diversification. Fortunately, Maine’s collaborative spirit is tangible, with real estate developers and other constituencies often working together to fuel economic growth.

FirstPark came about through collaboration. Established in Oakland by the Kennebec Regional Development Authority (KRDA) — one of the state’s most unique economic development organizations — and supported by more than 20 member communities, FirstPark is a 285-acre campus that houses businesses of all sizes.

We currently have 148 acres of land available to be purchased, permitted by the Maine Department of Environmental Protection, Maine Department of Transportation, and Army Corps of Engineers. FirstPark is proud to offer 11 lots for sale, either individually or all together, with lot sizes ranging from seven acres to up to 50 acres. Businesses and buildings of all sizes are welcome, and the business park is not cost-prohibitive for start-up businesses and others looking to purchase land in Maine.

After all, Mainers are firm believers in entrepreneurship and proud supporters of local businesses. Some people may think that a small town like Oakland is cut off from the rest of the world, but Maine is more accessible than people tend to believe. Located 15 miles from the state capital, two miles west of the Kennebec River, and immediately adjacent to Interstate 95, FirstPark is conveniently connected to the rest of Maine and beyond. Whether businesses are trying to do work in Central Maine, the rest of New England or even Canada, there are easy transportation options in Oakland to take work anywhere.

The business park is more than a campus; we are a community. And that speaks to Maine in general. Our state has so much to offer when we work together as a community. If we sell the Maine way of life together, who could say “no” to that?

Jim Dinkle serves as Executive Director of FirstPark in Oakland, ME. https://firstpark.com/

June 25, 2024 at 6:00 am · Shelly Clark · Comments Off on The Right Equation for Responsible Development: Spotlight on University of Southern Maine Portland Commons Residence Hall and McGoldrick Center for Career & Student Success (Portland)

The Right Equation for Responsible Development: Spotlight on University of Southern Maine Portland Commons Residence Hall and McGoldrick Center for Career & Student Success (Portland)

This year, MEREDA honored projects from Portland to Gardiner to Presque Isle, with each receiving special recognition at MEREDA’s 2024 Spring Conference on May 15th.

MEREDA’s 2023 Top 7 recipients include:

University of Southern Maine Portland Commons Residence Hall and McGoldrick Center for Career & Student Success, Capstone Development Partners (Portland)

Maine Savings Amphitheater, Waterfront Concerts, LLC (Bangor)

Phoenix Flats, Community Housing of Maine (Portland)

Homeless Services Center, Developers Collaborative (Portland)

Northeastland Hotel, Haley Ward, Inc. (Presque Isle)

Johnson Hall Opera House, Johnson Hall Redevelopment, LLC (Gardiner)

The Armature at Hanover Works, Reveler Development (Portland)

Please join us this week in celebrating USM Portland Commons Residence Hall and McGoldrick Center for Career & Student Success.

MEREDA: Describe the building and project.

This massive transformation of University of Southern Maine’s (USM) Portland campus included two connected facilities – the 218,000-square-foot, eight-story Portland Commons student residence and the 42,000-square-foot, five-story McGoldrick Center for Career & Student Success – both centered on a one-acre green quad.

The Portland Commons Residence Hall is home to undergraduates in their second, third, or fourth year; graduate students; law students; and residential staff with a mix of single-occupancy rooms, studio apartments, and larger apartments with multiple bedrooms and bathrooms. Amenities include a courtyard, a variety of study and meeting rooms, interior gathering spaces, and indoor bike storage.

The building has four wings, two reaching five stories in height and two reaching eight stories in height — forming a parallelogram that encloses the semi-private residential courtyard and maximizes access to natural daylight and views for living units.

This first-ever, on-campus, Portland-based residence hall for USM will provide affordable housing in a market where inventory is low and expensive, reduce competition for scarce housing with Portland residents, and alleviate overcrowding in the Gorham Campus residence halls.

The McGoldrick Center for Career & Student Success is a welcoming center of student life. The large scale of the building begins with the soaring south-facing Bath Savings Portico comprised of diagonal cross-laminated timber (CLT) columns to create a signature visual expression across the front façade. A broad gesture roughly 30 feet tall, 20 feet deep, and 200 feet long, the portico forms a “front porch” and covers a two-story mass timber-framed lobby. Enclosed entirely in a transparent curtain wall, this dramatic lobby is anchored by a monumental stone fireplace and soaring open stairs.

On the ground floor, the lobby is adjacent to a large dining common with a 254-seat capacity. The Double L Fireside Student Lounge, the University Store, and the Husky Brew provide more spaces to connect and study. The second floor is devoted entirely to career services, featuring the new home of the Career & Employment Hub with an office suite; a 4,500-square-foot multi-purpose room; private meeting rooms; and the Prentice Board Room. The top floor is devoted to Student Affairs, featuring the Student Diversity Center, with offices and various student lounge spaces.

These new campus facilities represent the pinnacle of sustainability and embraced renewable low-carbon building technologies, waste diversion, and strategies to maintain healthy living and working spaces. Portland Commons is the second largest Passive House residence hall in the United States and is projected to use 50% less energy than a standard modern building. The McGoldrick Center, with its large-scale 33.3-kW rooftop photovoltaic array and passive solar heating through a large south-facing glass façade, is pursuing LEED Gold certification. The building also incorporates corrugated metal and wood cladding materials, which are low carbon in their manufacture and shipping and can be recycled at the end of their long lifecycle. The facility is comprised of one-third mass timber and two-thirds structural steel framing, with low-carbon mass timber CLT and laminated lumber supports throughout as replacement for more carbon-intensive steel and concrete. Both buildings incorporate technologies such as energy-efficient lighting, water-efficient fixtures and daylight harvesting to further minimize impact.

MEREDA: What was the impetus for this project?

A 2019 Facilities Master Plan outlined a series of important planning and building initiatives to better prepare the University to attract and retain highly qualified students and faculty, transforming the local and state economies through scholarship, civic and cultural engagement, and innovation. The addition of new residential beds and a student center focused on career counseling and graduate success – both framing a new central quad – were the cornerstones of that master plan.

Fulfilling the aspirations of that master plan, the Portland Commons Residence Hall, McGoldrick Center for Career & Student Success, and L.L.Bean Green give the University a new campus heart that offers on-campus housing, dining amenities, and social and academic support spaces for all students. Surface parking that once occupied the site was relocated to a new garage, allowing the residence hall and student center to frame a large open lawn that has become the signature open space on the campus. With a design equally informed by all three pillars of sustainability, the new buildings and landscape enhance social equity with access and support for all; economic prosperity by providing compact, energy-efficient housing with a cost-effective price; and environmental stewardship by greatly reducing energy consumption through Passive House design, mass timber construction, and a renewable energy solar array on top of the McGoldrick Center.

MEREDA: That sounds like quite a process. How long were you in the planning stages before construction started?

PC Construction proposed with Capstone Development Partners on the project in July 2019 and were awarded the project in November 2019. The design-build planning process started in earnest in late December 2019. The original goal was to start construction in late summer 2020 but the pandemic impacted the preconstruction and design process and moved the construction start to March 2021. The planning process to delivery of the GMP was approximately 14 months.

MEREDA: Tell us about the most challenging aspect of getting this project completed.

Portland Commons and McGoldrick Center, plus a multi-level parking garage, were under construction by PC simultaneously on USM’s campus. Combined with the several other construction projects also underway in Portland, the availability of skilled tradespeople was a major challenge. To keep the USM projects on schedule, PC offset the work sequences for subcontractors to coordinate the needs of all three buildings without depleting each other’s resources.

Another challenge involved the relocation of the campus’s main steam line. The existing conditions differed from the as-builts, which required a redesign of the connections at either end of the steam line and the installation of a new condensate line. This unexpected work had to be completed before October 1 so that the campus heating system could be turned on for the winter season.

Lastly, the delivery of the prefabricated metal panels that formed the superstructure of Portland Commons became a supply chain issue, potentially putting the entire project schedule at risk. Electrical rough-in could not begin until the building was weather-tight, and since this delay would set back roof installation, the team made a major pivot to erect one wing at a time, rather than one floor of two wings at a time.

MEREDA: Something unexpected you learned along the way was….

Achieving Passive House certification could have been a lot more challenging than it turned out to be. Outstanding project teaming partners made certification possible.

MEREDA: Now that it’s complete, what feature of the project do you think makes it the most notable?

The expansive mass timber of the McGoldrick Center is impressive. Even though Maine is so well known for its extensive forestry industry, the trees in this area typically do not meet the structural requirements of mass timber. With one-third of the building comprised of mass timber, the building brings an exciting visual appeal while providing sustainable benefits. With Portland Commons, designing and constructing the second largest Passive House building at a university in the United States and a top-10 largest Passive House building anywhere in the country was incredibly exciting. This entire team will look back at the USM campus with pride for a long time to come.

June 18, 2024 at 6:00 am · Shelly Clark · Comments Off on Bad for Business…

Bad for Business…

By: Justin Lamontagne, CCIM, SIOR, Partner | Designated Broker, The Dunham Group

The year was 2011, and a young, ambitious broker received a lead on a 30,000 SF industrial tenant in search of a simple warehouse with a few overhead doors and a loading dock. The broker swiftly compiled an inventory of 7-8 attractive options in the Greater Portland area and scheduled a property tour. Three months later, after some healthy negotiations and back-and-forth, a new lease was executed, leaving everyone satisfied with the experience and end-result.

Fast forward to today, the same broker with an identical requirement, cautiously explains to their tenant-client that the overall vacancy rate in Greater Portland is an unthinkable 0.66%. The inventory list and tour schedule are so limited that it now includes raw land, office buildings, and properties 30 miles from the preferred location. The tenant can’t believe there are no options for them to grow in Southern Maine, leading them to ask the broker for referrals out of state.

This dramatic anecdote is becoming all too common in today’s industrial sector. In simple terms, the lack of industrial supply in Southern Maine is detrimental to our economy. Analyzing this year’s Southern Maine Industrial Market Survey results, it’s shocking to note that of the 19 million SF in Greater Portland, a mere 125,000 SF is vacant. Even with sublet opportunities adding another 112,000 SF, the total available rate is a paltry 1.25%.

Expanding the geography of this year’s report to other parts of Southern Maine revealed that the supply/demand imbalance permeates throughout the region from York County to Androscoggin. Only Lewiston, among the 15 towns and cities, has what could be considered a “healthy” industrial market, where tenants might have some leverage. However, even there, the numbers are somewhat misleading, with virtually all inventory accounted for by 5-6 very large empty buildings. Indeed, a recent survey in Lewiston for a 7k SF industrial client uncovered exactly one suitable option, proving their reported 10%+- vacancy rate is deceivingly high.

So, what’s an industrial business to do? While new construction and land development remain options, they are costly and time-consuming endeavors. Therefore, I predict we’ll see more creative repurposing of office and retail spaces. This trend has already begun with some small success stories. And in 2024 we will have no choice but to consider if the interiors of empty office buildings or retail buildings can be gutted and otherwise retrofitted to accommodate industrial end-users. This concept’s success will depend on several factors falling into place, not the least of which is zoning. But for lower-impact tenants not requiring traditional taller ceilings and multiple loading docks, a single-story office building could serve as a decent warehouse with the right modifications.

Not surprisingly, industrial values, both for sale and lease, continue to appreciate dramatically. For the first time, average sale prices have surpassed $100/sf, reaching $104 based on over 25 industrial sales in the Greater Portland area. Smaller buildings under 10k SF regularly see prices at or above $150/sf, equaling replacement value. This proves that the often complicated and slow process of new construction is deterring end-users. And it further indicates that “shovel-ready” industrial land sites like the Innovation District at Scarborough Downs are the most successful model.

Lease prices are also on the rise, though not as dramatically as sale values. A 3% increase was calculated in 2023, but I anticipate a more significant increase in 2024. Most listed spaces on the market are now asking well above $10/sf NNN, reaching as high as $13-14/sf for smaller units, surpassing rates for Class B and low-A office spaces in many cases. This has led to sticker shock for industrial tenants, especially those new to the market or accustomed to years of rates near $5-6/sf. This push-back from tenants is partially accounting for the slower pace in lease rate increases. Unfortunately for them, basic supply and demand economic principles will usurp any heartburn tenants have looking at their real estate budgets.

My crystal ball isn’t insightful enough to project how to fix this problem. All I can do is identify the critical issue and hope that conditions improve for our local industrial businesses. And I can always fondly reminisce about the good ‘ole days of long inventory lists and property tours.

Original article located at https://www.dunham-group.com/uploads/2024-southern-maine-industrial-market-survey_digital_.pdf

June 4, 2024 at 6:00 am · Shelly Clark · Comments Off on Listen Up! The June 2024 Episode of the “MEREDA Matters” Podcast is Now Available!

Listen Up! The June 2024 Episode of the “MEREDA Matters” Podcast is Now Available!

A Conversation with Shannon Richards, Incoming President of MEREDA

Incoming President of MEREDA Shannon Richards sits with current MEREDA President Craig Young and immediate past President Josh Fifield for the eighteenth episode of MEREDA Matters – the podcast that puts you in the room with the people who are driving responsible development in Maine.

Richards, who is the Founder of the design-build firm Hay Runner, shares the origin of her company, including the inspiration for its name. She goes on to talk about what it was like growing up in Castine, Maine and Jamestown, Rhode Island and why she feels that all of Maine is like an island community. Richards also discusses the importance of art in her life, how she does something creative everyday, and why she decided to build an art school with her partner, architect Caleb Johnson. The conversation also includes a discussion on Richards’s approach to running a successful business, which for her is about coming up with a plan and then showing up every single day.

The group goes on to reflect on their experiences working together on MEREDA events and what Richards’s goals are for the next two years as President.

Where is Shannon’s favorite place to vacation in Maine? Listen to the episode to find out! https://mereda-matters.simplecast.com/

Catch up on past episodes while you’re there!

The MEREDA Matters podcast is sponsored by NBT Bank and Landry French Construction. Additional sponsors include Bangor Savings Bank, Clark Insurance, A Marsh & McLennan Agency LLC Company, and The Boulos Company. A new episode will be released each month and each will feature new voices from the real estate and development industry.

May 28, 2024 at 6:00 am · Shelly Clark · Comments Off on Maine Real Estate & Development Association Recognizes Top 7 Notable Projects of 2023

Maine Real Estate & Development Association Recognizes Top 7 Notable Projects of 2023

The Maine Real Estate & Development Association (MEREDA), the state’s leading organization promoting responsible real estate development, honored projects from Portland to Bangor to Presque Isle, with each receiving special recognition at MEREDA’s 2024 Spring Conference on May 15th.

Each year, MEREDA recognizes some of the state’s most “noteworthy and significant” real estate projects, completed in the previous year. The exemplary projects from across the state, completed in 2023, not only embody MEREDA’s belief in responsible real estate development, but also exemplify best practices in the industry, contributing to Maine’s economic growth by significant investment of resources and job creation statewide.

Each of the seven projects was selected in part based upon criteria including: noteworthy and significant project completed* in 2023 (*Building Occupancy Permit issued by 12 31 23), environmental sustainability, economic impact, energy efficiency, social impact, uniqueness, difficulty of development and job creation.

The recipients of MEREDA’s Top 7 Most Notable Projects of 2023 include:

• University of Southern Maine Portland Commons Residence Hall and McGoldrick Center for Career & Student Success in Portland. These two facilities represent a massive transformation of USM’s Portland campus. The first-ever Portland residence hall will provide affordable housing for students in a market where inventory is low and expensive. The new student center incorporates cross-laminated timber columns to create a signature visual expression across the front facade. These new campus facilities represent the pinnacle of sustainability and embrace renewable low-carbon building technologies. Portland Commons is the second largest Passive House residence hall in the United States and is projected to use 50% less energy than a standard modern building. The McGoldrick Center, with its large-scale 33.3-kW rooftop photovoltaic array and passive solar heating, is pursuing LEED Gold certification. The construction project is the largest in the school’s history.

• Waterfront Concerts, LLC of Old Town enlisted Ervin Architecture and completed their long-standing vision of developing a best-in-class amphitheater, with the Maine Savings Amphitheater being the largest and most modern music venue north of Boston. Bangor is now a premier concert destination for world class talent and amazing community events. Additions include ten corporate suites, five premium clubs, several ADA improvements, improved and expanded concessions, terraced Hussey Fusion seating with wider seats and aisles, two hundred and fifty-two new bathrooms, and a dedicated video screens and audio system for the lawn. The team used Maine-made products, contractors, and environmentally sustainable materials wherever they could to maximize the impact locally and to minimize its impact on the community and environment.

• Phoenix Flats in Portland is the first building in Maine to be constructed with the use of the newly created State Low Income Housing Tax Credit. The project is the result of a unique partnership between the City of Portland, MaineHousing, Portland Housing Authority, WNC, Bangor Savings Bank, and Community Housing of Maine, Inc. (CHOM), and was made possible by a long-term land lease from the City, and an additional land donation from Donald Sussman. Designed by CWS Architects, Thornton-Tomasetti, Bennet Engineering, Terradyn Consultants, and built by AlliedCook Construction, Phoenix Flats is Passive House Certified, and its design is the embodiment of all CHOM has learned about good design, energy efficiency, and thermal comfort. This development combines both affordable residential apartments and first-class commercial space into one building in downtown Portland. Beyond adding critical affordable housing, it is a blended Housing First development, discreetly housing people who are chronically homeless. What was once a city owned parking lot is now a beautiful building contributing to the social and economic goals of the City of Portland and the State of Maine.

• The City of Portland’s Homeless Services Center in Portland, also known as the “HSC” is Maine’s largest homeless shelter and is unparalleled in its provision of dignified living spaces and on-site wraparound support services. The HSC was thoughtfully designed and constructed specifically to serve the unhoused based on input from those experiencing homelessness. It includes 208 beds between separate men’s and women’s dormitories, a commercial kitchen and dining area, bathrooms with private showers, offices for service providers, an on-site health clinic run by Greater Portland Health, and an outdoor recreation area with garden beds. A result of many years of visioning and planning, the City of Portland selected Developers Collaborative to develop the shelter and lease it back to the City. Winton Scott Architects designed the building and Cianbro served as construction manager. The HSC utilized a pre-engineered Murox building system, concrete floors, and minimal finishes. The result is a LEED Gold-certified building that is durable, functional, comfortable, and humane. HSC operations are free of fossil fuels, powered instead by a solar array installed on the building’s roof. Heating, cooling, and hot water are entirely electric, and the building features a highly efficient variable refrigerant flow system.

• The Northeastland Hotel project in Presque Isle is noteworthy for its groundbreaking approach to community development, where a nonprofit partnered with the private sector to drive economic growth and create new opportunities in Presque Isle. Ignite PI reimagined the Northeastland Hotel as a dynamic hub for innovation and economic growth. Haley Ward, served as the Lead Designer and Architect of Record, and played a pivotal role in this endeavor, collaborating with Bowerbird Design Collective as the Interior Designer and Nickerson & O’Day, Inc. as the Construction Manager. The completion of Phase I in March 2023 marked a significant milestone for the renovation of over 8,900 square feet of space within the hotel. The repurposed Northeastland Hotel houses a coworking Innovation Center and revitalized common areas, including the restaurant, lobby, and staff rooms. This multifaceted approach not only modernizes the hotel but also transforms it into a vibrant space that fosters collaboration, entrepreneurship, and community engagement. The project highlights how a collaborative, forward-thinking approach can transform a community and its historical landmarks.

• Johnson Hall Redevelopment, LLC, redeveloped Maine’s oldest Opera Theater. Johnson Hall Opera House in Gardiner, the three-story brick Italianate building is a significant feature of Gardiner’s Historic District with a fascinating history spanning over 150 years. The building received both interior and exterior renovations to all three floors with an installation of a new balcony. It was constructed in conformance with historic standards as set forth by the National Park Service, Maine Historical Preservation Commission standards and Gardiner Historical Society requirements. Today the building features a 400-seat theater with state-of-the-art sound, lighting and projection equipment; a gracious lobby and concession area; and a green room for performers on the second floor; an expanded foyer and full-service box office on the ground floor; a renovated 100-seat theater on the lower level; and ADA compliant access throughout all floors with ramps, an elevator and a stage lift. During pre-construction and construction, over 37 consultants and businesses combined were engaged in the project. Johnson Hall Opera House is now an anchor to downtown hospitality businesses and an engine of economic opportunity. It will promote, create, and inspire artistic excellence through the presentation of world class entertainment and professional performing arts education to the Kennebec Valley.

• Reveler Development’s The Armature at Hanover Works in Portland is Portland’s first and only lifestyle apartment complex. The mixed-use property opened for occupancy in November 2023 and is located in Portland’s rapidly emerging West Bayside neighborhood, featuring 171 residential units, 10% of which is workforce housing, with integrated parking and 6,400 SF of commercial space. The Armature provides much-needed housing while also transforming the building’s ground floor into a retail and dining hub within West Bayside. Once a mechanical garage and surface parking lot for Portland’s fleet of public works vehicles, the industrial history of the site inspired The Armature’s name and branding. A ground-up construction project, The Armature required an intensive construction timeline and was made possible by a collaborative effort with its project partners, including Penobscot General Contractors, Acorn Engineering, and Reveler’s in-house construction team. The space was designed by Boston-based architecture firm Cube3. On the ground floor, The Armature’s four commercial spaces will connect with local businesses along 82 Hanover Street, forming Hanover Works and fostering an indoor-outdoor neighborhood hub.

MEREDA congratulates its 2023 Notable Project Award Recipients and thanks its Membership for their continued commitment to responsible development in Maine. Each project will be recognized in the Maine Real Estate Insider e-newsletter published by Mainebiz, running Summer of 2024.

For more information on these impressive projects, please click here.

May 21, 2024 at 6:00 am · Shelly Clark · Comments Off on Penciling the Future: MEREDA Spring Conference Highlights Opportunities for Developing Projects Aligned with Maine’s Needs

Penciling the Future: MEREDA Spring Conference Highlights Opportunities for Developing Projects Aligned with Maine’s Needs

On Wednesday, May 15th, the Maine Real Estate & Development Association (MEREDA) hosted its annual Spring Conference where close to 300 real estate professionals gathered at the Holiday Inn By the Bay to discuss designing development solutions that align with Maine’s needs for the future. Housing creation is one of Maine’s most significant needs and MEREDA’s event provided an opportunity for industry professionals to hear different perspectives from local, regional, and national experts on this important and complex issue.

“Our Spring Conference is a time to look ahead at Maine’s future. There is a critical need for more housing in our state and we need more developers to be involved in creative housing creation,” shared MEREDA President Craig Young. “It can be difficult to pencil out deals for these types of projects, which is why we organized this conference. There are opportunities, like historic tax credits and smart growth design, that can facilitate more projects coming together that will enrich our communities and meet the needs of our state.”

The event kicked off with a presenter who provided a national perspective, Jonathan Tate, an award-winning architect from New Orleans. Tate’s international practice is centered around housing development and planning in both rural and urban communities. His creative land use opens up opportunities for density, sustainability, and affordability in unique ways. “There are opportunities if you can imagine them,” he said. Tate shared several examples of his innovative work, including developing projects on small, non-conforming lots and working with a non-profit to build a reentry housing project for individuals exiting the incarceration system. Full of creative design and committed to building more housing, Tate’s work demonstrates how a closer relationship between architects and developers can enable more imaginative construction and problem-solving.

Tate’s presentation was followed by a panel discussion on leveraging historic tax credits for real estate growth. Panelists included Jonathan Culley, Principal at Redfern Properties; John Egan, Senior Program Officer for Strategic Initiatives at the Genesis Fund; and Nate Marcet, a CPA from Albin, Randall & Bennet. The panel was moderated by Marieke Thormann, Vice President of Development at Fathom Companies. The group explored the layers of complexity involved in using historic tax credits while also noting how they are an extremely powerful tool for revitalizing communities. Redfern’s recent transformation of the Mercy Hospital campus in Portland, which will add 171 housing units, provided an excellent example of how the historic tax credit can work.

The afternoon continued with an economic presentation from Kenneth J. Entenmann, the Chief Investment Officer and Chief Economist at NBT Bank. His macro economic discussion included in-depth examination of the definition of Gross Domestic Product (GDP) as a way to illustrate the economy’s strong environment, as well as discussions on the housing shortage and the federal debt. Playing with the idea of what “normal” is for the economy, Entenmann urged everyone to manage their expectations around interest rates, arguing that today’s rates are actually normal, while the low rates of the past few years were abnormal. Summing things up, Entenmann said, “The economy is not the greatest. It’s not the worst. But it is a great business environment.”

After a recognition of MEREDA’s 2023 Notable Project recipients, the conference concluded with a panel discussion on smart growth and urban development featuring Kevin Kraft and Nell Donaldson from the City of Portland and Tyler Norod, Development Director at Westbrook Development Corporation. The panel was moderated by Jonathan Tate. Kraft and Donaldson started the discussion by providing an overview of the City of Portland’s ReCode project to update and simplify Portland’s zoning and development ordinances. A large undertaking that came out of Portland’s 2017 comprehensive plan, the ReCode project has been working to get the public involved in the technical work of planning for the future of the city, as well as establishing goals for what future growth in the city should include. Kraft and Donaldson discussed Portland’s focus on developing complete neighborhoods that are walkable and bikeable, and establishing Transit-Oriented Development (TOD) zones to catalyze development along public transit routes. Embedded in the work of ReCode is the concept of smart growth and Norod provided a real-life example of how this approach can revitalize neighborhoods. Built through his work with Avesta, the West End Apartments in South Portland transformed a vacant lot into a mixed-use housing development that improved the neighborhood. With wider sidewalks and first-floor retail spaces, the project illustrates the importance of human-scale design for fostering connection. Norod, an affordable housing advocate, highlighted how affordable housing needs affordable land, which is tied directly to municipal infrastructure. He spoke about the need for more Maine communities to build more housing at a density that is appropriate for each community. “We need to think holistically about development. We need to plan well and design well. The table needs to be set.”

With our dire need for more housing, having creative solutions and a better understanding of the tools and mechanisms for making development deals work is essential for Maine’s future. MEREDA’s Spring Conference brought people together from across industries to learn about the opportunities for smart growth and responsible development so more projects that have goals aligned with the needs of our communities can be built.

May 14, 2024 at 6:00 am · Shelly Clark · Comments Off on The Greater Portland Retail Forecast for 2024

The Greater Portland Retail Forecast for 2024

On February 29th, 2024, Peter Harrington of Malone Commercial Brokers presented “The Greater Portland retail forecast for 2024” at the Maine Real Estate & Development Association’s (MEREDA’s) 2024 Annual Forecast Conference. The following is an overview of what Harrington presented.

Looking back at 2023, the retail scene in the greater Portland area remained resilient though we did see a slight uptick in the overall vacancy rate from 4.23% to 4.33%. A large portion of the vacancies in the market can be attributed to a few spaces. In Portland, where the vacancy rate stood at 3.9%, lease rates displayed quite a range, spanning from $8 to $40 per s/f for triple net spaces and $25 to $35 per s/f for modified gross spaces. Notably, the Old Port, which can be difficult to track due to the number of retail spaces, showed a vacancy rate of around 2%, with lease rates ranging from $40 to $75 per s/f on a modified gross basis.

There weren’t as many retail buildings sold in 2023, but one notable transaction was the sale of the West Elm building on Middle St. for $5.2 million, which included approximately 3,700 s/f of unfinished space on the lower level.

Scarborough stood out with an impressively low vacancy rate of 0.9%. Scarborough also saw the opening of the first Costco in Maine. Additionally, the ongoing development of the town center at the Downs project promises an enticing blend of retail, dining options, and recreational facilities.

In South Portland, a 5.1% vacancy rate persisted, primarily attributed to the former Sears space. However, the Maine Mall managed to achieve pre-pandemic sales levels despite operating with reduced hours. New tenants such as Box Lunch, Peapod Jewelry, Carters, and Miniso added vibrancy to their retail landscape.

Westbrook had seemingly high vacancy rates at 14.7%, which is mostly due to the former Shaw’s vacancy. The Rock Row development has continued to captivate interest, buoyed by attractions like REI, Market Basket, Chick-fil-A, and Cowbell Rock Row. On the downtown front, Westbrook exhibited strong occupancy and ongoing residential expansions.

Meanwhile, Falmouth maintained a steady vacancy rate of approximately 2%, with ongoing construction at the shops at Falmouth Sq. — a 20,980 s/f retail space that has already secured substantial interest, alongside plans for upper-floor condos ranging from $550,000 to $1 million.

Southern Maine is still a strong destination for tourists as well as locals. We’re seeing tremendous demand for space on the peninsula in Portland. Madewell opened at 75 Market St. a little over a year ago, it’s one of the top stores they have. Construction is underway to convert former retail banking and office space at One Canal Plaza to high-end retail offerings.

There are two ongoing historic rehabilitation projects by East Brown Cow, which will help contribute to the vibrancy of retail offerings in the area. One is on the corner of Middle St. and Exchange St.; all retail spaces at this location have been leased. The other rehab is at 121 Middle St. Both will be stunning properties when completed. A few weeks ago, we orchestrated a lease with Free People at 121 Middle St., which will be their first store in Maine. A 2,470± s/f retail space still remains next to this exciting new tenant. We are continuing to see the best-of-breed retailers realizing the value of Portland and continuing to expand here, complementing the locally-owned, award-winning restaurants, shops, and breweries.

One potentially adverse factor that could impact retail in 2024 is that interest rates are still high. This could lead to a slowdown in some of the retail that’s directly related to housing in the U.S. Weather has been another factor. There have been major weather events coast to coast which have affected retail a little bit since the beginning of the year.

Despite these factors, we think 2024 will be another good year for retail. It’s, as always, based on the U.S. consumer. Due to the strong wage growth, and additional jobs being added, the U.S. economy continues to expand. Without new retail space being added, overall vacancy rates will remain low.

Retail is a sector that everyone thought would no longer be as viable with the onslaught of online shopping. This has proven to be incorrect. People are still going out and shopping in physical stores. I don’t see that trend ending in the U.S. anytime soon. Frankly, it’s what a lot of people like to do, it’s about the experience.

Original article published March 1, 2024, https://www.malonecb.com/news-feed/2024/4/3/the-greater-portland-retail-forecast-for-2024

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