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February 26, 2018

Investor group goes off-market on $5.75M Stroudwater deal

Courtesy / Malone Commercial Brokers
Courtesy / Malone Commercial Brokers
An investor group views the $5.75 million purchase of 1685 Congress St. in the Stroudwater section of Portland as a long-term investment.

PORTLAND — Once again, a simple inquiry led to a major transaction, even though the property in question was never on the market.

A group of five local investors purchased 1685 Congress St., in the Stroudwater section of Portland, from Stroudwater Associates for $5.75 million. The property, called Stroudwater Crossing, consists of a 30,548-square-foot office building on 8.9 acres.

John Doyon of Malone Commercial Brokers represented the seller and was the only broker in the transaction. The deal closed Jan. 17.

"It wasn't on the market," said Doyon. "I was handling the leasing" for Stroudwater Associates "and I saw a potential match that might work. I inquired and put the transaction together. It was a matter of timing. Investment properties are hard to find, currently, in Maine. This is a nice Class A investment property."

The buyer, 1685 Congress Street LLC, consists of five local investors, two of whom are local physicians who plan to lease space in the building, said Doyon.

The professional building, built in 1986, is in a prominent location that's easily accessible from both I-95 and I-295 and just minutes from downtown Portland. It has ample on-site parking — a distinct attraction in Portland. The building has views of the Fore River on three sides of the building. Roughly 20,000 cars pass the building daily.

"It's a free-standing building with good visibility, good name recognition — being called Stroudwater Crossing — that attracts a lot of people who come for services," said Doyon. "You can easily get off the turnpike, easily find the property and find free parking onsite — five spaces for every 1,000 square feet in the building. If these offices were in downtown Portland, you just wouldn't have that."

Tenants include Regency Mortgage, Maxim Healthcare, Maine Eye Center and Stroudwater Associates, a local medical consulting firm that has the same name as the seller but was not involved with the ownership. There are also two smaller tenants. Maine Eye Center, which occupies the third floor, is moving out in a month or so, and The Plastic Surgery Center, a local medical practice, has signed a long-term lease for half of the third floor and will be moving in this summer.

The property is in excellent condition, with renovations done recently by several tenants. The front portion of the third floor will be redone for The Plastic Surgery Center.

The buyer group sees the purchase as a long-term investment, said Doyon.

"By long-term, I wouldn't be surprised if they held it for 20 years," he said. "It's hard to find a quality Class A investment like this one, so they're currently priced on the higher end. There's just not enough inventory right now in the investment sector."

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