Two well-maintained apartment buildings and a parking lot on Portland’s east promenade sold for $ 7.6 million after decades in the same family.
Diane Perlin sold 246 Eastern Promenade and 119 Morning St. to an undisclosed buyer. Brit Vitalius and Chris Sullivan of Vitalius Real Estate Group and John Graham of John Graham Real Estate negotiated the transaction.
The sites were 246 Eastern Promenade, which consists of 12 residential units and a parking lot, and 119 Morning St., with 28 residential units.
“This is a lovely unique property,” said Vitalius who, along with Sullivan, represented the sellers.
Vitalius praised the sellers as out-of-state homeowners who live in New York City.
“They are amazing owners. Their properties are in immaculate condition, ”he said. “They know all of their tenants by name. Their tenants stayed for years.
Courtesy of Vitalius Real Estate Group
The seller’s father built 119 Morning St. as an apartment building in the 1920s.
The parking lot goes with the property at 246 Eastern Promenade but is shared by both, he noted.
“It’s quite unique to find two large buildings with parking,” he said.
Both buildings are fully let, he added. Both were built for residential rentals with simple amenities.
“But some have incredible views of the water,” he added.
The rent restriction has implications
The properties were on the market without list price for a few months.
“We showed it to local investors and we ended up with about 10 deals,” he said.
This reflects the trends of multiple offers far exceeding supply due to demand from in-state and out-of-state apartment buyers.
But Portland’s new rent controls and Green New Deal laws are hurting sellers, Vitalius said. This is because the rents for both buildings are below market and yet the new law limits the increases allowed, he said.
And the layout of the parking lot is also limited.
Taken together, the new laws had the effect of lowering the selling price, he said.
“The business world should know that at least two million dollars in value has been lost,” he said. “This is where we saw real world implications.”
Vitalius estimated that the properties could have cost more than $ 10 million without the restrictions.
it’s the people
Diane Perlin said her father and uncle built the Morning Street building, and possibly the Eastern Promenade building, in the 1920s.
Courtesy / The Perlin family
Diane and Marc Perlin.
She and her family lived in the Morning Street apartment building when she was growing up.
“I went to school across the street and we stayed there until I was in high school, when we moved.”
The properties remained in his family until the recent sale.
“It’s a family business, run by a family,” she said. “My mother did the rents. My dad was a handyman and he helped fix things up. I remember how lucky I was to live there and have the eastern promenade as a beautiful backyard.
The Perlins live in New York, but they travel about every month to look after the properties.
“I rented the apartments myself, so we knew all the tenants from the moment they moved in,” she said.
The couple decided to sell as they got older and it became more difficult to travel and manage the buildings. They have a summer residence in Old Orchard Beach and will continue to visit Portland.
“We had absolutely lovely tenants. Many of them have been there for 12 years with over 20 years, ”she said. “And what happened was some people would start in a studio and then go into a one bedroom. Sometimes they would get married or have a loved one and move to a bigger apartment. So we’ve had a lot of long-term tenants and we’ve gotten to know them really, really well.
She added: “Sometimes I get asked, ‘Do you miss buildings?’ I tell them that it is not the buildings that I miss. It’s the people.