20 minute read
Real Estate
New Annual Feature
Gendron Commercial Brokers are building Ten Moulton Street behind their present headquarters, as well as rehabbing the adjacent building on Commercial Street.
By Richard Bennett
DonaldTrump has risen to such legendary status in New York that some people on the street - and he shyly confirms this- actually touch him for good luck as they pass by, rubbing him as ifhe's a magic lantern or the Blarney Stone. And who's got the touch in Portland? a city where, as one wag has suggested, the Golden Trian·
glehas turned into the Bermuda Triangle in two short years?
It isthe best oftimes; itisthe worst of times. Despite the lack of a clear vision for the city, the perceived PROBLEM OF PARKING, the ambiguous impact of a profoundly confusing tax simplification, cries ofconcern over "on-againoff-again" zoning restrictions, and other wringing of hands and gnashing of teeth, real estate development in the Portland area continues along at a brisk pace.
As their name suggests, developers will not just wait around for things to develop. For better or worse, the principles of capitalism and the nature of their profession simply do not allow them the time to "stop and smell the roses," as planning board member Joseph DeCourcey and various noisy neighborhood groups would have the city do. As surely as the sun rises and sets, developers willdevelop.
Politics, howeve.r,sets itsown irregular, unpredictable; but inevitably inclusive and probably productive pace. With change pounding at the door of City Hall, nostalgia is unavoidably introduced into the debate over whether thekeys should be handed over. In Portland the tension has produced a political migraine of increasing severity. The' concern is that the medicine being con· sidered may be aimed only at suppressing the headache and not relieving the underlying cause of tension.
How the debate willbe settled is still unknown, but the answer willsurely be affectedbyDevelopment '87, thisyear's installment of the continually unfolding drama of building a city, a melange of properties, projects, and personalities which define, characterize, and underscore the problem itself.
Develop_er_s _ As Artists
PrithamSinghdescribes real estate development as a painter describes his medium, with candor, color, and a faculty for shifting from conceptual reflection to technical specifics.Actually, he says, development has a "more truly artistic impact on human beings than anything else in America." A carefully constructed sense of place, through architectural consistency, is a crucial constituent of every great city, according to the owner ofthe Great Bay Company. Although Pritham Singh can be called a native Mainer, his burgeoning company is oriented nationally (Singh isplanning a $300 millionresort/ residential development in Key West, Florida) and isheadquartered inBoston. "I am very upset about the direction Portland is going," he says, decrying the city's "lack of vision," because he sees Portland departing from its traditional architecture. "Why did people come back (to Portland) inthe' 60s and '7Os to revitalize the city? Because there was something to revitalize. There was an intrinsic value."
An advocate of mass and height restrictions, Singh strongly supports the Greater Portland Landmarks effort to halt Liberty Group's controversial planned development of Long Wharf (see below). He, however, supported the neighboring Chandler's Wharf condominium project as "very appropriate" in both scale and design.
In 1987, Singh's Great Bay Company willbe involved in several significant projects of its own on the peninsula. Pritham Singh recently acquired the Baxter Building on Congress Street and will be refurbishing its 120,000 square feet of commercial space. His company will also be undertaking an historic rehab of the former Young's Furniture building at the base of Free Street for 24,000 square feet of office and retail space. Additionally, Singh has purchased a large block of property on Center Street near Commercial Street. And he plans to build "Museum Row," a development of 11 four-storey buildings comprising 110,000 square feet, on a Free Street parking lot.
Singh is optimistic about further development activity on Free Street and points to the planned convention center as an indication of that area's vitality. He even suggests that, ifhis Free Street property should be determined a more suitable location for the convention center, he would be willing to negotiate a trade.
Yet, whileapparently bullishon Portland's economic future, Singh is concerned that the myopia ofthe city's political process may damage Portland's integrity. He dismisses the existence of a parking problem, saying that it is "a convenience issue" which will be resolved by the local economy, if left alone to do the job. For Singh, such popularly-inspired "short-term political motives" are threatening Portland. "A lot of people buy velvet paintings," Singh notes. "Do you want them in charge of our art schools?" Design review by competant authorities is a better answer.
Singh believes that ifdevelopers continue to build suitable office space in downtown Portland, a new, more natural retail sector ofthe economy willarise to satisfy the needs of downtown office· workers. People from the suburbs now no longer shop on the peninsula, opting instead for the ease of the Maine Mall. But thousands of new downtown workers willwant to eat and shop inspecialty shops.
One project sure to provide downtown Portland with substantial additional work space is One Portland Square, at the intersection of Spring and Union Streets. A joint venture among Northland Investment Corporation, Newton, Massachusetts; Atlantic Shopping Centers, Ltd., Halifax, Nova Scotia; and J.B. Brown & Sons, Portland; the ten-story skeleton currently being flashed out will house 185,000 square feet of office and financial retail space and carries a price tag of $20 million.
Works in Progress
One Portland Square.
Curtis Scribner, president of J.B. Brown & Sons, says that One Portland Square development is just the first part of a multi-phase, mixed-use development on the six-acre site and that the developers "are look-
ing to build as demand requests, up to about 400,000 square feet." Future phases might involve a hotel, restau. rant, retail, residential, office, health club, outdoor public space, and additional parking. Phase I includes 330 parking spaces.
Scribner says the building, to be known as the Peoples Heritage Bank Building, was 65-percent pre-leased to Peoples Heritage Bank and the Verrill & Dana law firm prior to beginning construction in the spring of 1986. Office space should be ready for occupancy inAugust, 1987, and isexpected to rent for $15 per square foot plus utilities. All floors will offer expansive views of Portland, the waterfront, and the new landscaped plaza beside the building.
Like Pritham Singh, Scribner does not see parking as a significant problem for downtown development. "In the short run it is just a problem of cost. In the long run, people willhave to walk a little further. I don't look at it as a longterm problem." Nor is the concern surprising for a city with a growth pattern like Portland's, he points out. Portland Square, which is being built on the largest undeveloped lot on the peninsula and a former parking lot, will be "selfcontained on parking. "Developers attempt to go where demand exists," Scribner says. "Political pressures represent an attempt to find long-term answers" to development. He predicts that Portland commercial development will be slowing down this year, as the city is "going to be entering an absorption phase," and there willbe no building on speculation but rather only for an acquired user.
Contrary to the theory that out-ofstate companies are getting increasinglyinvolved inPortland development, Scribner believes that local concerns are now more involved than previously. He says "large and expensive projects are not easily handled" and smaller local developers will often seek out larger, more experienced, and more distant developers to help with the monetary risk and provide expertise for larger construction. Northland, his own company's affiliate forthe development of Portland Square "has been active in Maine for 15 to 17 years," he says.
Waterfront News SurgeOn Eastern Point
service space and 33,000 square feetof biotechindustrialspace. Infact,Menario, Russ &O'Sullivan has already relocated Agritech Systems, Inc., a locallyowned and managed biotech firm, to the property. According to the plan, the site will
The 12-acre Eastern Point project, which will include 330 residential units, biotech industrial space, and marine-related retail trade as well as a 300-slip marina, which would add 9,000 linear feet to Portland's berthing capability. It is estimated that the project will create 150 permanent and 150 temporary jobs, as well as a 20-fold increase in property tax values to the city.
Perhaps the most controversial proposed development of the year isthe Eastern Point project, the waterfront development planned for the Crosby-Portland Engineering Company land on Fore Street between the Portland House and Bath Iron Works. At the center of the debate is the project's questioned impact on the Munjoy Hillresidential neighborhood. Proposed by a development team comprised of Webb/ St. James Ventures; Menario, Russ & O'Sullivan; and William F. Farley; Eastern Point requires a zone change in order to expand its current heavy industry use to include mixed-use commercial and pleasure boat berthing, lightindustry, retailand restaurant trade, housing, and public recreation.
After a pitched battle; the Portland Planning Board voted 3 to 2 in favor of the controversial zone change on December 30. Joel Russ of Menario, Russ & O'Sullivan suggests that if the City Council approves the change, the permitting process may be complete by late summer and construction might begin as early as late fall 1987. He acknowledges, however, that the spring of 1988 isa more likelystarting date for this project, which is expected to take 5 to 7 years to complete.
Situated on 12 acres of land and 13 acres of water, the development would comprise 330 residential units, created at the rate of 40 to 50 per year, as well as 22,000 square feet of retail/office/ provide gradual transition from this light industry near BIW to a predominantly residential use along Fore Street closest to Munjoy Hill.
Retail trade isexpected to be marinerelated and located near the 300-slip marina, which will add about 9,000 linear feet to Portland's berthing capability. Russ also emppasizes the 150 permanent and 150 temporary jobs, the 20-fold increase in property tax revenues, and the maintenance and improvement ofvisual and publicaccess to the harbor which the development willbring.
The only downtown development project to challenge Eastern Point for the titleof "Most Controversial of 1987" is the Liberty Group's planned development of Long Wharf, to which DiMillo's Restaurant is berthed. Criticized generally by other developers, public officials, and private citizens alike for the "excessive mass and height" ofthe 200,000-square-foot street-front retail and office building, Long Wharf nevertheless gained city approval and is currently under consideration by the state.
Ninety percent of the building fronting Commercial Street willhouse office space; the remaining 20,000 square feet is expected to be retail with an enclosed atrium. Liberty Group isplanning 57 proposed waterfront condominiums that will ring the wharf, with
landscaped courtyards in the center.
Parking needs will be taken care of - with 363 on-site parking spaces and an additional six-level 333-space parking garage will be erected just across Commercial Street on the Casco Bank site. The Liberty Group calculates the project willinitiallyprovide the citywith about $1.5 million per year in added tax revenues.
Meanwhile, a few blocks away, another Liberty group project announced about a year and a half ago is entering the final stages of construction. The twinseven-story towers ofOne Hundred Middle Street Plaza, housing 198,000 square feet of new first-class office and retail space, were 70-percentleased before the project's first public announcement. Under construction by the localfamily firmofAllied Construction, the project willcost approximately $20 million.
As can be seen hom the street, the two steel-frame towers are about equal size with brick and glass exteriors. Liberty Group takes pride in the quality of Continued on page 28 HAVE YOUR EATING HABITS GOTTEN OUT OF CONTROL?
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Which is exactly why you should know The Boulos Company-the commercial real estate broker/developer at the top of the list.
You see, we've been on the leading edge of industrial, office, hotel and retail brokerage and development in Maine for over 12years.
And as you might expect, that experience has kept us extremely well-connected.
More often than not, we're first to know who'sbuying, who's selling and who's looking. Who's investing. Who's financing.
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That in itself is good reason to call (207) 772-1333and talk to us now about realizing your best plans for growth.
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Continued from page 25 the project as "demonstrated by the attention to detail inthe plaza and lobby areas:" the open courtyard willbe heavilylandscaped with trees and ornamental shrubs and will feature brick and granite paving materials.
The upper level plans are designed for executive offices with great flexibility of layout, offering approximately 15,000 square feet of usable space per floorand prime viewstoward the harbor and historicdistricts.Anticipated tenantS include the Liberty Group and several affiliated companies; the law firm of Bernstein, Shur, Sawyer & Nelson; the Morse, Payson & Noyes insurance agency; H.M. Payson & Company, an investment. banking firm; and Peat,. Marwick, Mitchell & Co., an accounting firm.
As the tenants destined for One Hundred Middle Street Plaza start making arrangements Withmoving companies, the 13 floors and 200,000 square feet of One City Center inMonument Square slowlylose their emptiness. Developed over a year ago by the Fischer Group of Troy, N.Y., the building may have finally achieved over 90 per cent leasing of its office space. Marketing agent John Wise says that UNUM insurance offices, which already occupy floors 11 through 13, will be taking additionally floors 5 and 6 by the mKldleof March. Floors 7 and 8, home of law firm Hoglund and Pierce, McCann Realty, and Paine Webber, willbe fullyoccupied by May 1. The rate? Office space is available for $18-20 per square foot plus utilities.
Although the retail space is substantially more costly at $22-30 per square foot, Wise points out that space in the first floor food court can be leased for just $1,000 per month at that rate. He admits that marketing the first three floors has become difficult, and the owner has abandoned the idea of a third-floor fine-dining restaurant for a mixture of office and retail space. The first floor remains 66 percent unleased; the second, which isassisted byNorstar Bank's retailoutlet, is53 percent vacant. Floor 3 is the most troublesome, with only 12 percent of the space occupied.
On January 8 the transformation of Portland's Milk Street Armory was made official with the opening of the Portland Regency Hotel inthe building.
Local developer Eric Cianchette acquired the property from 1982-84 and then "did our own marketing study" to determine what use would be best for the landmark. "We jumped on an airplane and looked at other cities," he says, and they decided that the Old Port needed a first-class hotel. To complete the $10 million project, Cianchette joined forces with Regency Inns to make the Portland facility the latter company's seventh operating hotel.
Construction began about 18-months ago and required a substantial amount of preliminary demolition, excavation, and blasting inside. Three of the four floors have the 100 room•. , and sites available in the 80,000-square-foot structure. The building now sports two lounges, two restaurants, a full-service health and fitness facility, and materials and antiques from all over the world. The nine-footchandelier hanging above a fountain in the main dining room was hand-made in Maine in the 1800s and found its way back after the closing of the Exeter Street Theater in Boston, where it hung for years.
According to Jim Welch, marketing representative for Regency Inns, his company saw an irresistibleopportunity . inPortland. "Portland is a city that had been a sleeper to a certain degree," he says. "It is now a city on the move and hasn't in any way reached as a center of commerce." its potential Calling the new hotel a "prestigious property" and a "showpiece," Welch says that his marketing targets business travellers and tourists and that rates range from $70 to $150 per night.
Preview Of Coming Attractions Architects Four
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with the previous owner of the historic Atlantic House inScarborough late last year, and his plan to replace the resort house with 40 luxury condominiums is under DEP consideration. If the plans are approved, Rick Hanson, vice president of engineering for Ram Management, expects an April construction start for the two-year project.
;l1JVUt. cOrilprisedcif~~~~lopersGeorge . DiMatteo,Ant~qI'lY Mcmcini,and I{()~co,Rishara Jt.;i ..~~seager to gain ccitYccouncilapprny:i.tlAndbegin workon the 277 -foot Lincolij~Ssquare.A"zone change from B-2. t<i~:3is ne~essary J>efqre'theproposed'J7.storey building Cart shoot up,toaIm()~ftwice the height pfany other buildinginPortland.ln the accompanying diagram, the Suo Savillgs& LoanB~ilding,at 150feet one of the~ity'~ •.taUest, pecoOl~~~fqqtqQte to1..iI'lC2IqS~lJ.Clre,which wmJ1flpebuilt on tbecqrner of.Cgn~ess,Fr~qklin Street, Cumberland A\venue,andPearl Street. ".;
Hanson says that each unit willhave a panoramic ocean view. He prefers to call them" attached homes" because of their size and quality. Arranged "like a horseshoe" opening toward the sea, eight buildings will house the units, which willbe available in one- and twolevel variations with two or three bedrooms, with some options for a fourth. The units will range from 1,700 to 2,300 square feet, and each willhave its own garage, probably attached.
Particular care will be taken in the development of the grounds on the 18acre property, which include a beautiful beach and about 600 feetofshorefront, according to Hanson. An "English garden" will occupy the center of the courtyard withinthe horseshoe, and the great lawn on the property willbe preserved. Other amenities and features planned are a large swimming pool, two tennis courts, and a clubhouse with exercise equipment.
Hanson acknowledges that many people regret the dismantling ofthe 150 year-old Atlantic House for sentimental reasons, but he says, "Unfortunately, the place is an old, outdated fire-trap. The local and state authorities would require such dramatic changes in the buidling that it would lose its appearance, anyway." Goldenfarb's original idea was to renovate the hotel, but he foundtheplan was unfeasible. Although the building - because of its age - is listed in the National Register, the developer and the historical societies interested in the property agree that the structure has "no redeeming architectural features," according to Hanson. "We'll be saving or donating a lot of artifacts to the Maine Historical Society or to the Scarborough Historical Society,"h e says.
Portland's ArchitectiJral Heritage
In early January, Gendron Commercial Brokers officially turned soil for the company's new headquarters building, which willrise seven floors from a former parking lot behind theircurrent officebuildingon the corner of Moulton and Commercial Streets. To be christened Ten Moulton Street, the new construction, coupled with extensive work planned for the company's present residence, willcost about $3 million and willcomprise the first of a two-phase development for the neighborhood. According to company president John Gendron, Phase II willentail the historic restoration of a neighboring building.
Gendron Commercial Brokers will occupy the top four floors of the new 22,000-square-foot building. In addition, Ten Moulton Street will include highquality retailand professional office space. John Gendron makes it clear that his company's development of a newheadquarters for itsgrowing operations in no way indicates a move from brokerage to development forhisfamily firm. "Because someone is buidling their headquarters," he says, "doesn't establish them as a real estate deI veoper. "
John Gendron says his company is "verypreservation-oriented" and worked closely with Greater Portland Landmarks throughout the planning period. "Without an organization like Landmarks," he says, "Portland wouldn't look the same. Landmarks isa wonderful organization. They do research at no cost, and they were active participants in the process of trying to bring that building;the historic rehab ofPhase II back to what it was." He adds that Portland is lucky that so many historic designs can easily be adapted for contemporary uses. "A lot of people think the new tax law's going to have a dramatic effect on historic rehab," Gendron says. "We don't think that's the case. More buildings in Portland haven't been rehabbed than have ... At the time, the tax law was very important inopening the process, but now developers realize that rehabs help them in marketing. "The biggest problem forrehabs," he Continued on page 39
