The City of Portland announced today that it has closed on the real estate for the Midtown development project to The Federated Companies for $2.3 million. The project will be a major catalyst to support the revitalization of the Bayside neighborhood with the creation of 450 new, market-rate apartments, an 800-space parking garage to support the Bayside and downtown business growth in addition to the project itself, and 87,000+ square feet of ground level retail space. The project will include additional amenities to support and improve the Bayside Trail with new plaza space and activation from new residents. With the closing of the sale, the developer can initiate the construction phase, which is expected to begin this summer and take 36 months to complete.
“Soon, we will see this neighborhood grow with the addition of approximately 600 new residents who will have access to a tremendous amount of amenities, and will have the ability to walk downtown to work or play,” said City Manager Jon Jennings. “We worked hard to ensure that this project also included a number of benefits for all Portland citizens with the creation of $1.5 million of new annual tax revenue as well as the new retail options and public infrastructure amenities.”
Jennings continued, “I also want to extend my gratitude to the development team and all the city staff who worked hard over the last several years to get us to this point, including Greg Mitchell, Michael Goldman, and Tuck O’Brien.
“Closing on this land sale is a great step for the city and for the Bayside neighborhood,” said Mayor Ethan Strimling. “This is a significant project for Portland because it’s permitted to bring 450 new units of market-rate housing, which goes a long way toward my goal of creating 2,000 new units. With our tight housing market, this will provide some great relief. I look forward to seeing the full buildout of the project.”
“Although it’s been a long process to date, we are really looking forward to the revitalization of Somerset Street. The addition of hundreds of new residents in our neighborhood will bring more eyes on the street, creating a safer and thriving 24/7 community,” said Steve Hirshon, President of the Bayside Neighborhood Association.
“As chair of the Economic Development Committee, I’m pleased that this project is moving forward so that we may focus our time and energy on planning for other commercial development and infrastructure priorities in the city, including other opportunities to further revitalize the Bayside neighborhood,” said Councilor David Brenerman.
The revenue generated from this project will support City infrastructure projects, including the consolidation of Public Works to Canco Road, as well as allowing for the continued revitalization of the Bayside neighborhood through the disposition of additional city owned land that was formerly occupied for DPW operations.
The Bayside neighborhood is currently experiencing an influx of development with the residential building that is under construction at the Schlotterbeck & Foss building on Preble Street, the Bayside Bowl expansion on Alder Street, the recently completed new Bangor Savings Bank on Marginal Way, the redevelopment of the Century Tire site on Marginal, and a recently permitted food incubator called Fork Food Lab. This private sector investment is complemented by multi-million public sector infrastructure upgrades through new streets, lighting, sidewalks, landscaping, and utility.
The City was represented by CBRE The Boulos Company on the property sale.