Hey Where Ya Going? Former Thompson’s Farm Market Property Sold

HARWICHPORT, MA – The former Thompson’s Farm Market in Harwichport, MA changed hands in mid October 2008. According to a filed deed, the purchase price was $2,250,000 and the buyer was Building Down the Road, LLC. In a recent report published in the Cape Cod Chronicle the buyer was indicated to be affiliated with South Harwich based Back Office Associates, an information technology firm specializing in SAP data solutions. This notable piece of Cape Cod commercial real estate was vacant at the time of sale and was previously listed for sale on the open market for approximately two years.

The property is located on the north side of Route 28, across from Saquatucket Harbor and Brax Landing.  The 33,000 square foot building, situated on a 1.92 acre parcel of land, was erected in 1989 originally as Thompson’s Farm Market. The first floor contains approximately 16,500 square feet of retail and merchandise storage space. The layout of the 16,500 square foot second floor includes about one-half office space and a bakery/commissary in the remainder. Following the closing of the independent market, in recent years the ground floor space was occupied by various local retailers and the upper level was utilized as the offices of the Wychmere Harbor Club.

The upscale market was erected by Dr. J. Richard Fennel as a later offshoot to the original Thompson Brothers Clam Bar, a popular Cape Cod eatery formerly located at the end of Snow Inn Road on Wynchmere Harbor. Despite generations of loyal patrons since the 1950’s, the original clam bar closed in about 1996. Although a new Thompson’s was subsequently established at the corner of Bank Street and Route 28, the eatery eventually transitioned and the Thompson Brother’s Clam Bar legacy essentially ended here. Many will also remember Thompson Brothers Clam Bar from the famous “Hey Where Ya Going?” radio jingle found in this YouTube video.
 

 

Postcards by Hannau-Robinson, NY, NY; Joseph P. Egan Collection

Spirited Effort Will Put Wind Beneath Tired Wings

DENNISPORT, MA – The former Wings property located at 438-444 Route 28 in Dennisport is scheduled to take flight and this time it looks for real.

A.J. Lukes Liquors of Dennisport, with an established liquor store at the nearby Benny’s plaza has put into motion their plan to relocate to the former Wings property. As a key first step, in mid September 2008 Dennis Selectman approved both the change of location request and name change to A.J. Luke’s Super Liquor Store. On October 24, 2008 the company took the next major step and acquired this Cape Cod commercial real estate for $719,000 according to Registry of Deeds filings.

The new location offers 8,300 square feet of building area for the annual all alcohol package store. The building was previously occupied by Wings, a speciality retailer and a Dunkin Donuts. In recent years the property had been vacant and began to reflect the lack of regular maintenance. Following the recent acquistion of this commercial property located directly across from the Dennis Town Hall Annex, the liquor store owners plan to complete the much needed interior and exterior renovations. Reportedly, if all goes according to plan, the actual store relocation is likely to occur in about one year from now.

The Wings property was listed for sale for over three years originally at $1.2 million with reports of firm deals being struck but never making it to the closing table for one reason or another. Following a series of price reductions, the one-story retail property was most recently listed at $895,000 according to veteran Cape Cod broker Bob Winn with Century 21-Professional Realty LLC in Harwichport, MA. 

Regarding the recent sale, Bob Winn commented, “I presented the property to an extremely wide range of prospective users, each with an equally wide range of contemplated uses. I have no doubt A.J. Luke Liquor’s intended plans are among the best I have seen. It’s an excellent use for this property.” Mr. Winn is also impressed by the buyer’s investment and positive outlook for the Cape Cod economy. “I am 100% certain A.J. Luke Liquors will complete a top quality renovation and provide a great enhancement to the the Village of Dennisport. They are a top notch organization,” he said.    

In addition to stores in Harwich and Hyannis, A.J. Luke Liquors has operated the Dennisport store since 2003. It appears the new store location will mesh well with this local family-owned company’s goals and commitment to the Dennisport business community.

“The new A.J. Luke’s Super Liquor Store location provides more visibility along Route 28. This key investment will also enable us to better serve our customers by providing more convenience and a larger selection of merchandise,” said Mr. Luke, President of A.J. Lukes of Dennis, Inc. “Along with storefront and curb cut revisions, we also plan to extensively remodel the inside which will include a large fine wine room. Overall, it is an exciting project for us and the Dennisport community, and we are looking forward to bringing new life to this highly visible property.”

 

Sales Figures Reflect Softening Cape Cod Commercial Real Estate Sector

A total of 145 qualified commercial real estate sales transpired on Cape Cod from January – September 2008. The latest figures amount to a 23.3% decline from the level achieved in the same nine month period in 2007. The 2008 drop is also about 42% below the 12-year average of 250 sales and the lowest period to period total since 1997.

Quarterly figures reveal the deceleration in the number of sales was evenly spread out among each quarter. The quarterly data also shows in both in 2007 and 2008, first quarter activity once again fell below Quarter II sales volume. This is significant in that, except for 2006, at no time since 1997 has the number of sales in Quarter II been lower than the prior Quarter I total.

Excluding the Outer Cape sub region (Provincetown, Truro and Wellefleet) which achieved a small gain, the remaining three Cape Cod sub regions posted moderate decreases in the number of commercial property transactions. The greatest fall off, however, was in the Upper Cape sub region which experienced a sharp 49% decrease in year over year transaction volume, nearly double the countywide percentage decline.

The Mid Cape sub region once again posted the highest number of transactions (63) for the nine month period. According to the data, the Mid Cape sub region has held the top ranking in each consecutive three quarter period since 1997, until being closely edged out by the Upper Cape sub region in 2007 with 72 qualified sales.

Joseph P. Egan is a MA Certified General Real Estate Appraiser with over 25 years of professional valuation experience. Through a specialization in commercial real estate and closely-held businesses, since 1991 he has completed over 600 appraisal, brokerage and consulting assignments concerning all types of commercial real estate assets and going concerns located on Cape Cod, Nantucket, and Plymouth County, MA. Clients served generally include attorneys, banks, corporations, developers, investors, and owners of closely-held and family businesses. Prior to relocating to Cape Cod, Joe worked in the New York Metro Area and throughout CT with leading regional and national appraisal firms such as Cushman & Wakefield. Please contact Joe here.

Note: Qualified sales generally include arms length commercial real estate sales and exclude transactions such as those involving governmental agencies, conveyances among related or affiliated parties, partition or other court ordered sales, and at least for the time being foreclosure sales in most cases (although they are separated tracked). Excluded property types generally include small multi-family dwellings, agricultural properties, multi-unit residential developments, nursing homes, and lodging properties with fewer than four guest units.

Will Breaker Trip on Hyannis Circuit City Store?

HYANNIS, MA – The Wall Street Journal reported today Circuit City Stores, Inc. is considering a plan which will shutter at least 150 stores and result in the loss of thousands of jobs. Reportedly, the nation’s No. 2 electronic retailer has engaged various legal and industry experts as the firm explores alternatives to filing for bankruptcy protection. (WSJ)

The Art of the Deal: The International Inn Sold

In October 2008, the 141-unit International Inn in Hyannis, MA sold for $5.8 million. The sale was handled by Carey Commercial. Chuck Carey, principal of the Cape Cod commercial real estate and business opportunity brokerage firm bearing his name, shares with us his behind the scenes perspective on this notable transaction.

What can you tell us about the International Inn?

The 141 unit hotel actually had 175 units back in the 70’s and 80’s.  It was bought in 1985 by Arthur Rittel who re-constructed the building over and over combining rooms into suites and then even larger and more dramatic suites. Many of the rooms have huge flat screen TV’s, columned bathrooms, Victorian furniture and 15 inch crown moldings.

These rooms combined with the power marketing of the Cuddle and Bubble theme produced the highest grossing hotel in the Hyannis area for many years. At the time of the sale, however, other hotels in the area had taken market share. The decline was a sign of the complete obsolescence and failure of print media advertising which the operation relied upon.  

You have brokered the sales of numerous lodging properties on Cape Cod since the 1990’s. Why is this hotel sale significant?

The sale of the International Inn was a major event for Hyannis and Cape Cod. While the press makes comparisons to the Great Depression and predictions of a 1929 style crash, there are people who are still endeavoring to do business and carving out a path.

At $41,135 per key, the sale price ranks up there based on historical price levels. What are your thoughts on that?

The income at the time of the sale did not justify the price. But the owners are very experienced and the elements of success are clearly there. That is what the real story of this sale was,  the positive venture in a time when the press is playing Chicken Little.

The 3.17 acre property is exempt from the Cape Cod Commission which means that it is not obstructed from having a new building of up to four stories with a parking garage under.  There are only two small territories on the Cape which have been granted this immunity. So far it has led to the construction of several commercial / residential buildings and a new Hampton Inn. 

So there are intrinsic options with the property itself but the reason for the purchase was to rejuvenate a uniquely themed operation which had lost it’s dominant position.

What are some of the additional transactions details?

The buyers own a Hampton Inn and a Super Eight in Stamford, CT as well as three hotels in India. There are several partners in the venture and they have stated that they consider the theme distinctive and plan to keep it.

The sale was financed by $3.0 Million from The Community Bank, arranged personally by Eric Bancroft along with $1.9 Million from Matt Collins through an SBA Lender, Granite State Development. The property was valued in 2004 at $10.4 Million.

Restaurants Get Needed Refill on Tax Break

The recently passed Emergency Economic Stabilization Act of 2008 included an extension of the accelerated depreciation allowance for qualified leasehold and restaurant improvements and for certain improvements to retail space.

The National Restaurant Association hailed the passage of this “side order” provision extending the current 15-year depreciation schedule for improvements made to restaurant buildings in 2008 and 2009, and for new restaurant construction in 2009. 

According to Dawn Sweeney, President and CEO of the National Restaurant Association. “A faster, more accurate depreciation schedule has a direct impact on a restaurant’s bottom line. By shortening the depreciation schedule to 15 years, Congress has given operators cash flow to reinvest in their businesses, allowing them to grow and add more restaurant jobs.”