Principals: Rex S. Bell, Joshua A. Benthien Northland Enterprises. LLC, is a Portland, Maine based real estate development companyformed in 2001 to acquire, redevelop, and reposition unique income producing properties. Northland specializes in: 1.Acquiring and rehabilitating “value-add” urban-infill, income producing office, retail and multifamily properties. 2.Large scale Historic Rehabilitation projects utilizing multiple funding sources.
Public-Private Partnership Success Stories- Baxter Library Post Card from circa 1910 Post rehabilitation 2010
Baxter Library History First public library in Portland Built in 1888 Designed by Francis Fassett, one of Portland’s most prolific and influential architects Operated as Portland’s library until late 1970’s. Listed on the national registry of historic places Owned by the Maine College of Art from 1980 – 2009 Under MECA’s ownership, the building was well preserved but not upgraded; a time capsule. MECA had shuttered the building as they consolidated into the Porteous building.
Baxter Library Challenges: Redevelopment type: What use was most feasible: housing or commercial? Functionality: How to modernize a building with such unique historic fabric and unique features Sources/Uses imbalance: As-complete appraised value : $3.1mm vs. total development costs of $4.6mm ($1.5mm gap). Complicating things more is the fact that his deal materialized in 2008/2009 when prospects for lending were dim. Neighborhood: Once a thriving block of Congress Street, this area had not been a focus of redevelopment in the last 15 years.
Baxter Library Challenges: Redevelopment type: What use was most feasible: housing or commercial 1. Odd shape 2. Limited parking 3. Difficult access Commercial Use 4. Neighborhood issues 5. Window line issues
Baxter Library Challenges: Functionality: How to modernize a building with such unique historic fabric and unique features: Keys to success: Team of talented architects – David Lloyd/ Archetype Architects (exterior/building systems) – Scott Simons/ Scott Simons Architects (interior fit-out) Visionary tenant in John Coleman and his team at The VIA Agency.
Baxter Library – Functionality Highlights: All new building systems (electric/HVAC/plumbing/IT Infrastructure) Historic replica windows/ or rebuilt wooden windows where originals existed 50% re-pointing New ADA compliant rear entrance Addition of a 3 floor elevator Creation of a new floor (3rd floor) in the rear stack building Added a mezzanine connecting third floors of the front and rear building Complete fit-up for Via
Baxter Library – Sources/Uses Imbalance KEYS TO SUCCESS:Financing partners who excel at creative problem solving: Bangor Savings Bank Coastal Enterprises City of Portland Maine Rural Development Authority Tax Credit Capital
Baxter Library – Capital StackSource Amount Private/ PublicBangor/CEI debt (NMTC) $2.4mm Public & PrivateMRDA Debt $438,000 PublicBangor TIF Loan $184,000 Public & PrivateInfrastructure Grant $25,000 PublicDeveloper Contribution $325,000 PrivateState Historic Equity $630,000 Public & PrivateFederal Historic Equity $500,000 Public & PrivateSeller Financing $100,000 Private $4,602,000
Baxter Library: Neighborhood – Challenge to OpportunityPRIOR to Baxter’s completion, within a 2 block radius, the following projects wereUnderway/or pending: Justin Alfond/Greg Shinburg’s renovation of the former USM dorm into market rate apartments.
Baxter Library: Neighborhood – Challenge to OpportunityAFTER Baxter’s completion, within a 2 block radius: Justin Alfond/Greg Shinburg’s renovation of the former USM dorms (100% leased) Eastland Park Hotel historic rehabilitation (underway) State Theater renovation (complete and thriving) Cleaning up of the vacant lot next to Gino’s (complete) Sale and pending renovation of the Lafayette apartment building (underway) Coffee By Design’s renovation and expansion across from Baxter. (complete) Four new restaurants have relocated to Longfellow square (complete)
Keys to Success:Complex Developments are successful when there is a team mentality between the developer,Lenders, investors, municipalities, construction professionals and tenants.These projects require unique levels of collective problem solving and understanding of eachother’s perspective