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October 18, 2023 at 10:00 am · · Comments Off on DevelopME Committee’s Lunch & Learn Event – Financing and its Role in the Development Process

DevelopME Committee’s Lunch & Learn Event – Financing and its Role in the Development Process

In-Person – Pre-registration is required.

Tuesday, November 14, 2023 – 11:30 AM – 1:00 PM

Holiday Inn by the Bay, 88 Spring Street, Portland, ME

Lunch: 11:30 – 12:00pm Program: 12:00 – 1:00 pm

About the Event:

Join MEREDA’s Emerging Leaders Committee for its next Lunch & Learn Event!

In this third installment of the DevelopME series of panel discussions organized to understand the roles and responsibilities of professionals engaged in development projects, this session will cover the value of having both a residential and commercial lending relationship as part of your team, and learning about the biggest differences between the two.

Meet our Presenters:

Gwen Hulit is a Mortgage Loan Officer with U.S. Bank, with lending capabilities in all 50 states. She originates residential mortgages on properties ranging from 1-4 units as primary residences, second homes, and investment properties. Gwen is the Co-Chair of MEREDA’s DevelopME committee and is active with the Olympia Snowe Women’s Leadership Institute. Gwen lives in her hometown of Falmouth with her husband and daughter.

Dana Myles is a Regional Vice President, Commercial Lender for Norway Savings Bank. She is based in the Portland Office, but can help with Commercial financing across Southern, Western and Midcoast Maine. She can help with answering questions and financing commercial real estate, construction loans, business acquisitions, business equipment loans, business startup loans and operating lines of credit. Dana is a part of MEREDA’s DevelopME committee and is on the Advisory Committee for CEI Ventures. Dana lives in Scarborough with her husband and two boys.

The program will be moderated by Taylor McFarlane, Associate Broker on the McFarlane Field Team at Portside Real Estate Group. Taylor is a Maine native, raised in Cape Elizabeth, Maine. She graduated from University of North Carolina, Chapel Hill where obtained a Bachelor’s Degree in Marketing and Communications. Taylor epitomizes integrity and attention to detail in every real estate transaction, which has resulted in her rapid growth and success in the real estate industry in just a few short years. Today, whether working with those new to the process or the very experienced, each transaction gets 100 percent of her attention and expertise.

As parents of two young children, Taylor and her husband Phil embrace every opportunity to explore Maine as a family. Taylor is an active community member, offering invaluable local insights to her clients. In 2022, she was honored as a recipient of Maine Biz’s 40 under 40 award.

MEREDA’s Refund Policy: Your RSVP is requested by November 7. Payment is expected at the time of registration. No refunds will be granted to anyone who registers, but fails to attend or who cancels after November 7.

Cost: Members: $35.00 each | Non-Members: $45.00 each — Prices increase by $10 after 11/7.

Register Here!

This event is sponsored by Foreside Title Co. and Lotfey Dennett Insurance Brokers.

October 17, 2023 at 6:00 am · · Comments Off on The Right Equation for Responsible Development: Spotlight on Freedom Place at 66 State Street (Portland)

The Right Equation for Responsible Development: Spotlight on Freedom Place at 66 State Street (Portland)

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 2022, 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 Lewiston to Portland to Biddeford, with each receiving special recognition at MEREDA’s 2023 Spring Conference on May 25th.

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 2022 Top 7 recipients include:

Lincoln Hotel & Lofts, LHL Holdings and Chinburg Properties (Biddeford)
Gauvreau Place, Community Concepts Inc. and Avesta Housing (Lewiston)

Shipyard Brewing Redevelopment, Bateman Partners, LLC (Portland)
Reconstruction & Reuse of Historic Building 12, Portland Foreside Development Company (Portland)
L.L.Bean Corporate Headquarters, Zachau Construction (Freeport)
Freedom Place at 66 State Street, Developers Collaborative (Portland)
VA Outpatient Clinic, J.B. Brown & Sons and FD Stonewater (Portland)

Please join us this week in celebrating Freedom Place at 66 State Street.

MEREDA:  Describe the building and project.

Freedom Place at 66 State Street: Freedom Place at 66 State Street is a renovation and adaptive reuse project located in Portland’s West End neighborhood. The historic three-story brick building at 66 State Street is the former home of St. Dominic’s Parochial School for Boys, and it more recently housed several social services agencies, including Amistad, which serves adults in the Greater Portland area who struggle with mental illness, substance abuse, and other life challenges.

In 2018, Kevin Bunker of Developers Collaborative purchased the historic building and subsequently redeveloped it into a transitional housing complex for women in recovery from substance abuse and homelessness. The building now contains 38 single-occupancy bedrooms, communal bathrooms, kitchens, and gathering spaces for residents. There is space to support on-site wrap-around services for residents, including treatment and recovery programs provided by Amistad. In addition, residents can participate in vocational training that takes place in the building’s on-site commercial kitchen. Re-entering the job market is only one aspect of recovery, but it is an important one. Finally, to provide a continuum of housing options to house residents throughout the full recovery journey, Bunker’s plan involved the development of a new 30-unit affordable apartment complex on the same site as the historic building redevelopment.

MEREDA:  What was the impetus for this project?  

Freedom Place at 66 State Street: When Bunker acquired the building in 2018, he envisioned transforming the building into market-rate condominiums to meet the need for more housing on the Portland peninsula. However, as a result of Kevin’s encounters with Amistad, then a tenant of the building, a new vision for the building was formed. There was a significant unmet need in the Portland community for a development that would respond to Maine’s homelessness crisis and embrace the state’s “Housing First” model, which provides housing to those in need without the typical shelter prerequisites of sobriety or medication. Freedom Place helps fill the need for this type of housing in the Portland community and serves as a haven for women experiencing homelessness.

Safe, stable housing is vital for recovery, and women often have a more difficult time navigating the shelter system and having their unique needs met by traditional recovery residences. Women experiencing addiction are more likely to be exposed to poverty, hunger, adverse legal interaction, sexual exploitation, domestic abuse, and trauma. Freedom Place provides them with secure housing and on-site programs to break the cycle of homelessness and promote recovery and pathways back to productive lives.

Bunker and Amistad’s shared vision for Freedom Place at 66 State Street guided them through many challenges in the development process. The model for the partnership between Bunker and Amistad had no precedent and required both partners to leverage their areas of expertise: Bunker’s real estate structuring and development acumen and Amistad’s years of experience serving vulnerable populations. The project is a model for how the private sector can partner with nonprofits to have a positive impact on their local communities. However, even once Bunker and Amistad worked out a model, many technical challenges in the redevelopment process remained.

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

Freedom Place at 66 State Street: The predevelopment phase for Freedom Place took about a year before construction began. In addition, the renovation of the existing building was just the first phase of the redevelopment plan. Phase two, which began construction in the spring of 2022 and will be completed this summer, is a new, adjacent development of 30 units of affordable housing.

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

Freedom Place at 66 State Street: It’s hard to pick just one – many challenges had to be overcome to make the project possible. There were many regulatory barriers to overcome to fit the phase two apartments on a tight urban site while meeting the requirements of a historic district. The combined two-phase project required a complex capital stack, including a master-tenant two-phase Historic Tax Credit structure, an inclusionary zoning contribution from a nearby market-rate project, a 30-year TIF from the City of Portland, and project-based voucher allocation from MaineHousing alongside traditional debt and equity. 

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

Freedom Place at 66 State Street: The Freedom Place at 66 State Street demonstrates that the most valuable real estate in Portland cannot and should not be reserved for high-end development only. The downtown West End location of Freedom Place is walkable to much of Portland and public transportation hubs, which is a critically important feature for residents seeking off-site services and amenities. To create the Portland we all want, there must be a mix of incomes and uses in even the most desirable neighborhoods in the city. The Freedom Place project is an example of anti-gentrification that keeps Portland accessible and inclusive to the entire Portland community. 

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

Freedom Place at 66 State Street: The most notable feature of the project isn’t architectural. Several Freedom Place residents have not been able to maintain stable housing for over a decade until now, and many others are making meaningful steps toward rebuilding their lives thanks to the services provided by Amistad. Freedom Place has also reduced the burden of the homelessness crisis on local hospitals, shelters, and jails. Without Freedom Place, many of the women who reside there would have had nowhere else to go. While difficult to quantify, the impact of Freedom Place on the Portland community and the lives of residents has been meaningful.

October 12, 2023 at 10:56 am · · Comments Off on A Fresh Forecast – MEREDA to Hold Annual Forecast Conference in February 2024

A Fresh Forecast – MEREDA to Hold Annual Forecast Conference in February 2024

PORTLAND, Maine – Mark your calendars! The Maine Real Estate & Development Association’s (MEREDA’s) Annual Forecast Conference and Member Showcase has a new date: February 29th, 2024. As we leap into the new year, leaders from the state’s real estate and development community will gather at the refreshed Holiday Inn By the Bay to provide an economic overview and outlook on the industry’s key economic indicators. Along with the new date, the 2024 Forecast Conference will have a new afternoon format that will allow attendees to choose between various presentations from leading industry insiders.

“If you care about responsible development in Maine, the Forecast Conference is where you want to be,” shares MEREDA President Craig Young. “MEREDA really excels at facilitating important conversations about the issues facing our industry and our state. To be able to be in the room with some of Maine’s top real estate leaders is invaluable; it’s simply the best way you can start the new year. ”

MEREDA Vice President and Conference Committee Chair, Shannon Richards, echos Young’s enthusiasm: “MEREDA’s cornerstone event brings us all closer as a community, a community that is working to design, build, and develop responsibly in Maine. I’m thrilled that we will be gathering to look forward to 2024 in a new way.”

This unique conference brings together the largest gathering of commercial real estate professionals in Maine, and is specifically geared toward developers, brokers, architects, bankers, attorneys, accountants and other industry professionals. According to Shelly R. Clark, MEREDA’s Executive Director, MEREDA’s Forecast Conference will be in-person only and held at the Holiday Inn By the Bay on February 29 from 8am to 5pm. Registration is available at MEREDA.org for both the event and Member Showcase.

October 5, 2023 at 10:00 am · · Comments Off on MEREDA’s Annual Fall Networking Social Returns!

MEREDA’s Annual Fall Networking Social Returns!

In-Person – Pre-registration is required.

November 2 @ 5:00 pm – 7:00 pm

Mariner’s Church Banquet Center 368 Fore Street, Portland

About the Event:

MEREDA’s Annual Fall Social returns on November 2! Mark your calendar now to join us for another great “meet-and-greet” opportunity.

MEREDA’s networking events attract key players in Maine’s real estate industry offering excellent opportunities to interact with the experts.

Join us and other industry professionals on November 2 from 5 – 7 pm for Hors d’ oeuvres, Spirits, and Great Conversation!


Registering for this Event: Purchase your tickets HERE. Registration closes at 1:00 PM on November 2, 2023.

Refund Policy: Receipt of your registration indicates your intention to attend and secures you a ticket to the event. No refunds will be granted to anyone who registers, but fails to attend or who cancels after October 26. RSVP is requested by October 26. Payment is expected at the time of registration.

Ticket Prices: Members: $45 each | Non-Members: $60 each Prices increase by $10 after October 26.

This event is sponsored by J.B. Brown & Sons, M&T Bank, and Preti Flaherty.

October 3, 2023 at 6:00 am · · Comments Off on Listen Up! The October 2023 Episode of the “MEREDA Matters” Podcast is Now Available!

Listen Up! The October 2023 Episode of the “MEREDA Matters” Podcast is Now Available!

An Economic Outlook with Ken Entenmann, Chief Economist at NBT Bank

Ken Entenmann, Senior Vice President, Chief Investment Office and Chief Economist at NBT Bank, sits down with MEREDA President Craig Young and Senior Director of Affordable Housing at NBT Bank Kim Twitchell (formerly Maine Regional President of NBT Bank) for the tenth episode of MEREDA Matters – the podcast that puts you in the room with the people who are driving responsible development in Maine. The conversation begins with Entenmann sharing his career path and why he loves economics. The group then delves into a discussion on the resiliency of the U.S. economy and the important factors impacting the global economy right now such as inflation and the lingering effects of the pandemic. Entenmann also includes his perspective on the effect of renewable energy for energy prices. The discussion continues as the group looks at how the office market has been faring, both nationally and in Southern Maine. Entenmann shares his thoughts on whether there is a housing bubble, if current interest rates are the new normal, and whether he sees a recession on the horizon.

What books do Ken and Kim love to recommend? 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.

September 19, 2023 at 6:00 am · · Comments Off on The Right Equation for Responsible Development: Spotlight on the Reconstruction & Reuse of Historic Building 12 (Portland)

The Right Equation for Responsible Development: Spotlight on the Reconstruction & Reuse of Historic Building 12 (Portland)

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 2022, 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 Lewiston to Portland to Biddeford, with each receiving special recognition at MEREDA’s 2023 Spring Conference on May 25th.

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 2022 Top 7 recipients include:

Lincoln Hotel & Lofts, LHL Holdings and Chinburg Properties (Biddeford)
Gauvreau Place, Community Concepts Inc. and Avesta Housing (Lewiston)

Shipyard Brewing Redevelopment, Bateman Partners, LLC (Portland)
Reconstruction & Reuse of Historic Building 12, Portland Foreside Development Company (Portland)
L.L.Bean Corporate Headquarters, Zachau Construction (Freeport)
Freedom Place at 66 State Street, Developers Collaborative (Portland)
VA Outpatient Clinic, J.B. Brown & Sons and FD Stonewater (Portland)

Please join us this week in celebrating the Reconstruction & Reuse of Historic Building 12.

MEREDA:  Describe the building and project.

Reconstruction & Reuse of Historic Building 12: The Portland Company located at 58 Fore Street is rich in history as a former locomotive manufacturing complex which was one of the oldest, continually operating facilities in the country. The Portland Company complex was the only locomotive manufacturing facility in the country that was specifically established to produce locomotives. In addition to manufacturing locomotives, the buildings in this complex produced equipment for Maine’s paper textile and canning industries as well as marine engines, boilers and other parts for shipyards throughout Maine. The Portland Company made a significant contribution to the development of Maine’s railroads and maritime shipping industry. The future industrial expansion, commerce and tourism all were impacted in a positive way from improved transportation that was possible because of products manufactured in these buildings, including Building 12. This complex was originally founded in 1846 by John Poor to meet demands of a new, fast growing railroad industry in the United States. Hand-made wood patterns that were used to cast iron and steel for locomotive parts were a key piece of how the complex operated and a large capital investment for the Portland Company. The patterns were reused over long periods of time and preserving them was critically important, so they were stored in several locations, including the Pattern Storehouse (now known as Building 12). This building was located away from the other buildings and built of brick with a slate roof. Today, the Reconstruction and Reuse of Historic Building 12, which served as the Pattern Storehouse (built c.1895) for the Portland Company, is the catalyst to redeveloping the former Portland Company Site into a mixed-use urban waterfront neighborhood.

The reconstruction and reuse of Historic Building 12 was complex. In 2014, a detailed evaluation of the buildings at the Portland Company was prepared by Becker Structural Engineers. Building 12 was found to be in poor condition, particularly the roof along with significant masonry damage. The roof, upper floor and columns of building were noted to need reconstruction and masonry walls rebuilt. More specifically:
• Slate roof materials were loose and missing in many locations,
• Rotten wood roof trim or completely missing in locations,
• Daylight visible through the roof,
• Roof rafter framing undersized,
• Roof sag,
• Third floor deck and joists rotten,
• Ground floor dip at the center and wood sills bearing on grade as well as columns, all rotten,
• Structural supports hanging from floor beams due to column deterioration,
• Separation in diagonal beam supports at the columns,
• Exterior brick masonry bearing walls showed deterioration including open joints, bowed walls, cracks and rust, and
• Rotting window sills with broken windows.

Though the building condition was found to be poor, Becker also noted it was well constructed in its day.

Due to the condition of the building, Portland Foreside worked with a talented team and the City of Portland to undertake a significant planning, permitting, documentation and preservation efforts spanning a 5-year period that took place before the start of disassembly, relocation and reconstruction of historic Building 12. Upon careful documentation of the building, including 360 laser scans of the facades, the original masonry structure was fully disassembled. The brick was cleaned and stored, and the post and beam timber and salvageable joists and floorboards were saved for reuse. The Building 12 footprint was moved 200 feet from its original location to a new home at 115 Thames Street, making way for construction of the roadway network identified in the City’s Master Plan. The reconstructed building utilizes modern structural steel and composite slabs, modern insulated wall and roof systems, and historic reproduction windows. The building’s masonry preserves the historic character through reuse of the original brick and precise reproduction of the original masonry coursing, character and imperfections. Historic Building 12 now houses a restaurant (TWELVE), office space and residential condominium and the core and shell and restaurant project were completed in 2022. It’s an incredible transformation!

MEREDA:  What was the impetus for this project?  

Reconstruction & Reuse of Historic Building 12: Building 12 was in jeopardy of becoming buried by the grade of a new roadway being put in adjacent to it. Our team realized that it was necessary to move the building so embarked on a process to determine the best means and methods for this to happen.

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

Reconstruction & Reuse of Historic Building 12: In total, it was a five plus year process to evaluate the condition of the building, develop potential options for relocating it, prepare for its disassembly and store the building components, design the new version of the building, secure permits and then reconstruct the building.

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

Reconstruction & Reuse of Historic Building 12: The most challenging aspect of completing this project was the actual reconstruction of the building after the different components had been in storage for several years.

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

Reconstruction & Reuse of Historic Building 12: Building 12 and its original use as a pattern storehouse was unique because it was originally sited away from the core production buildings of the Portland Company to keep flammable materials away from production areas.

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

Reconstruction & Reuse of Historic Building 12: Its most notable feature is the recognizable Portland Co. sign painted on the exterior western façade – this was part of its original façade.

September 15, 2023 at 8:00 am · · Comments Off on MEREDA’s Morning Menu – Innovative Building Products & Revitalization of the Madison Mill

MEREDA’s Morning Menu – Innovative Building Products & Revitalization of the Madison Mill

In-Person – Pre-registration is required.

Thursday, October 19, 2023 – 8:30 – 10:00 AM

Holiday Inn by the Bay, 88 Spring Street, Portland, ME

Buffet Breakfast: 8:30 – 9:00am Program: 9:00 – 10:00 am

About the Event:

Join MEREDA on October 19th to hear from Matthew O’Malia, Co-Founder and Vice President of TimberHP, Executive Partner of OPAL Architecture, about the renovation of a former paper mill in Madison, Maine. This facility has since been turned into the first wood fiber insulation manufacturing plant in North America. With renovations nearly complete, TimberHP will be selling all three of its products—TimberFill, TimberBatt and TimberBoard—on the North American market by late 2023.

Don’t forget, this breakfast will now run from 8:30 – 10:00 AM in an effort to accommodate those working around childcare and bus drop offs and pick ups.

MEREDA’s Refund Policy: Your RSVP is requested by October 12. Payment is expected at the time of registration. No refunds will be granted to anyone who registers, but fails to attend or who cancels after October 12.

Cost: Members: $45.00 each | Non-Members: $55.00 each — Prices increase $10 after 10/12.

Register Here!

This event is sponsored by Norway Savings Bank.

September 14, 2023 at 11:18 am · · Comments Off on DevelopME Committee’s Lunch & Learn Event – Meet the Land Use Designer and Environmental Professional

DevelopME Committee’s Lunch & Learn Event – Meet the Land Use Designer and Environmental Professional

September 20, 2023 – 11:30 AM – 1:00 PM

In-Person – Pre-registration is required.

Holiday Inn By the Bay
88 Spring Street
Portland, ME

Lunch: 11:30-12:00
Program: 12:00-1:00

About the Event:

Meet the Land Use Designer and Environmental Professional – Defining their Role in the Development Process

Join MEREDA’s Emerging Leaders Committee for its next Lunch & Learn Event!

In this second installment of the DevelopME series of panel discussions organized to understand the roles and responsibilities of professionals engaged in development projects, we introduce a land use designer and an environmental professional. While our first panel offered insight from a broker’s perspective, this conversation will focus on when you should consider hiring a land-use design professional and what questions and information they provide to the team. We also explore how (but more importantly, when) it’s best to engage with an environmental professional and how they can guide the development team on the feasibility of development projects after the initial environmental assessment when teams navigate challenges associated with environmental impacts.

Meet the Presenters:

Lucas J. Benedict is a Senior Project Manager and Licensed Professional Geologist at Credere Associates, LLC in Westbrook, Maine. With nearly two decades of experience as an Environmental Professional, he and his Credere ‘associates’ specialize in sustainable Brownfields Programs and redevelopment projects across New England. Lucas not only helps private- and public-sector clients mitigate business risks tied to environmental challenges such as ‘Urban Fill’, hazardous wastes, and building materials containing PCBs, asbestos, and heavy metals, but also oversees Environmental Remediation/Construction contracts for the Federal Government/Department of Defense, managing tasks that include remediation, abatement, general construction, repairs, and demolition.

Henry Hess is a seasoned Landscape Architect and Project Manager at Sebago Technics. With over a decade of expertise in land and master planning, site design, due diligence, planting design, permitting, and construction, Henry’s skills as a Maine Registered Landscape Architect have been instrumental in shaping communities across various cities and towns in Maine.

Since joining Sebago Technics in 2018, Henry’s leadership in Landscape Architecture has consistently delivered creative solutions to complex site challenges. In recognition of his outstanding contributions, he was promoted to the role of Project Manager in 2023. In this capacity, he Is responsible for overseeing the overall development, budget, schedule, and approval of projects while skillfully maintaining strong relationships and communication with clients and regulatory authorities.

DevelopME Committee Co-chairs, Matt Pitzer of Simpson Gumpertz & Heger and Gwen Hulit of Bangor Savings Bank will moderate the program.

_______________________________________________________________________________

Registering for this Event:
Purchase your tickets here. Registration closes at 4:00 PM on September 19, 2023.

Refund Policy:  Your RSVP is requested by September 13. Payment is expected at the time of registration. No refunds will be granted to anyone who registers, but fails to attend or who cancels after September 13.

Ticket Prices:
Members: $35 each | Non-Members: $45 each
Prices increase by $10 after September 13.

This event is Sponsored by Sebago Technics and Credere Associates , LLC.

September 12, 2023 at 6:00 am · · Comments Off on Highlighting the Residential Component of the 2023 MEREDA Index

Highlighting the Residential Component of the 2023 MEREDA Index

On May 25, Leanne Nichols, a Broker with Keller Williams Realty, was a commentator for the Maine Real Estate & Development Association’s (MEREDA’s) 2023 MEREDA Index. Leanne’s comments on the Residential Sector follow Economist Charles Colgan’s analysis for 2022. 

The MEREDA Index is 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. The most recent edition covers the year 2022 and provides commentary on the Commercial, Residential, and Construction sectors. The MEREDA Index for 2022 is 115.8

THE RESIDENTIAL COMPONENT:  112.8

[Charles Colgan Analysis] “The weakest part of the MEREDA Index was the residential sector. Three of the four components of the Index showed declines on a year over year basis and on a 4th Quarter over 4th Quarter basis. The only component that continued to increase was the median sales price, whose index value grew 18% on an annual basis. At 174.3, the median price index reached its highest annual value. The highest quarterly value was 186.7 in 2022Q2 but the growth in the index value halted in the second half of 2022 falling to 170.0. The largest drop in residential Index components was in permits; the index value fell by more than 32% on an annual basis. This fall in the number of permits reflects higher interest rates. Both mortgage originations and the number of existing units sold declined, with their index values falling 18.3% and 17.1% respectively (year over year).”

[Leanne Nichols, Broker, Keller Williams Realty] “In 2022, the residential real estate market in Maine saw home prices soar to staggering new heights, further deepening the crisis many Mainers face to access affordable housing. The year started with an average mortgage interest rate of approximately 3%. As it became evident that inflation was not transitory, this interest rate more than doubled to a peak of over 7%, which affected affordability and forced many hopeful homebuyers out of the market. However, the low inventory and strong in-migration kept Maine’s market very strong for sellers throughout 2022. For example, I worked with buyer clients who finally closed on a South Portland home in September after four multiple offer situations. The home was listed for $680,000 and closed for $830,000.

This robust statewide sellers’ market resulted in a striking median sales price of $335,000 in 2022, an increase of 12.04% from the previous year’s median sales price of $299,000. Meanwhile, unit sales decreased by 17.49%, further impacting the acceleration in home prices. All 16 counties in Maine witnessed an increase in the median sales price and a decrease in the number of home sales compared to 2021, with 2022 home sales dipping below 17,000 units, for the first time since 2015.

The pandemic has played a significant role in these changes, including the impact of in-migration and work from-home trends. I worked with a couple that fled California who purchased new construction in Pownal. They work remotely and will be relocating their life here. A recent MoveBuddha report from November 2022 identified Portland as the #2 city to move to, and Maine as the #3 state for in-migration. This can also be seen in a statistical search from Maine Listings, which shows that pre-pandemic an average of 27.4% of out-of-state zip codes purchased Maine real estate. In 2021, it reached 35.4%, and remained steady at 34.4% in 2022.

Some of the trends in Maine’s residential market that accelerated during the pandemic could shift after a couple of exciting winters, or it could be that Maine has been discovered. If the latter is the case, Maine not only has an opportunity but an imperative to rethink its most recent sprawl-centric local zoning ordinances. We need to accommodate the influx of new Mainers while also taking care of the hard-working Mainers already here. Maine can embrace a new vision for itself – update aging housing stock and upgrade existing infrastructure – to build a future that all who choose to call Maine home can enjoy.”

September 8, 2023 at 10:36 am · · Comments Off on MEREDA Welcomes Maine State Economist, Amanda Rector

MEREDA Welcomes Maine State Economist, Amanda Rector

MEREDA’s “Morning Menu” Breakfast  Series Returns on September 14th

In-Person – Pre-registration is required.

Seating Capacity: 110 – We will not be able to accommodate walk-ins.

The Portland Regency Hotel 20 Milk Street, Portland, ME

Buffet Breakfast: 8:30 – 9:00am Program: 9:00 – 10:00 am

About the Event:

MEREDA is pleased to announce that Maine’s Economist, Amanda Rector, will address the membership and kick off our Fall Morning Menu Breakfast Series!

Amanda Rector is the State Economist for Maine. In this capacity, she conducts ongoing analysis of Maine’s economic and demographic conditions to help inform policy decisions. She joined Maine state government in 2004 and has served as State Economist since 2011. She earned a BA in Economics from Wellesley College and a Master’s in Public Policy and Management from the Muskie School of Public Service at the University of Southern Maine.

Amanda holds membership on the State of Maine’s Revenue Forecasting Committee, the advisory board for the New England Public Policy Center at the Federal Reserve Bank of Boston, and the Board of Visitors at the Muskie School of Public Service. She also serves as the Governor’s liaison to the U.S. Census Bureau.

Amanda will provide an update on recent economic and demographic trends in Maine and the outlook heading into the fall. Join us on September 14th and learn about what’s been happening around the state with migration, workforce and employment, income, inflation, and more.

Don’t forget, this breakfast will now run from 8:30 – 10:00 AM in an effort to accommodate those working around childcare and bus drop offs and pick ups.

Cost: Members: $45.00 each | Non-Members: $55.00 each

MEREDA – MEREDA Welcomes Maine State Economist, Amanda Rector

This event is sponsored by Norway Savings Bank.