September 3, 2010

With Chevrolet Out, Only One Falmouth Dealership Stays In

FALMOUTH, MA - In January 2010, seemingly without much public notice and information after the fact, Harbor Chevrolet at 171 Worcester Court cleared its lots, posted closed signs on the showroom windows, and locked the doors. According to GM and local sources, the long-time Upper Cape dealership is no longer in the dealer network. A redirect to GM from the dealership’s web address confirms the business closure. An affiliated enterprise, Seaside Auto Body was also closed along with the dealership.

Prior to the Harbor Chevrolet closing, Falmouth Ford on Dillingham Avenue was shuttered in 2007. This most recent closing, however, makes the nearby O’Hara Jeep Dodge Chrysler the only new car dealership still operating in Falmouth, MA.  

Few are more aware of this fact than Rich Duffy. He’s an ASE Certified Technician and founder-owner of Falmouth Motor Car, a growing business with state-of-the-art automotive service centers located in Falmouth and Cataumet, and a recently added modern quick oil change facility on Route 28 in West Yarmouth, MA.

“At the time I started in business in the early 1980′s, there were seven new automobile dealerships located in Falmouth. Today there’s just one remaining,” Mr. Duffy noted. “It all shows how much this industry has changed and will likely continue to change, especially for the consumer.” Going forward, Falmouth Motor Car’s mission is clear: make that change a reliable and high quality experience for local consumers who are now left with fewer comparable service and repair options.  

Harbor Chevrolet has deep roots in Falmouth and has served generations of loyal GM customers as either Clauson Chevrolet Oldsmobile and Tom Flurkey Chevrolet Oldsmobile GEO.

Originally occupying the premises under a lease, Flurkey eventually acquired the property under a foreclosure deed from Plymouth Savings Bank in 1994. A decade later, the current owners A&B Brown Real Estate LLC bought the property from the Flurkey’s and continued operating the GM dealership. The 2004 sale included the properties located at 171 Worcester Court (1.364 acre lot with a 10,440+/- SF dealership facility) and the adjacent property at 179 Worcester Court consisting of Seaside Auto Body (.586 acre lot with a 5,000+/- SF automotive facility). The recorded deed filed in June 2004 indicated a purchase price of $1,750,000 for both properties.

A recap of the seven dealerships operating Falmouth in the early 1980′s:

1. Falmouth Toyota- East Falmouth Hwy., near St Anthony’s Church. In the late 1980′s, Tom Murphy relocated Falmouth Toyota to a newly built facility on MacArthur Blvd. in Bourne. The former site was later redeveloped with a car wash.

2. Clauson Chevrolet Oldsmobile – Worcester Court; previously at 662 Main Street.

3. Falmouth Ford – dealership closed in 2007 and the property was sold in 2008. Click for related story.

4. VW/Mazda – currently O’Hara Jeep Dodge Chrysler at 50 Spring Bars Road.

5. Battles Buick- formerly on Depot St.;  the main Battles dealership was relocated to the former Bridge VW facility on MacArthur Blvd. in Bourne.

6. Falmouth Nissan - currently the Cape & Islands Tire store at 735 Teaticket Hwy., East Falmouth, MA

7. Falmouth Dodge – 662 Main Street; in about 2003 the site was redeveloped with a two story brick bank (currently Mutual Bank; previously Security Federal Savings Bank.)

Cape Cod Restaurant News

Cape Cod Restaurant News – March 2010

As we approach the start of 2010 season, a number of changes involving Cape Cod restaurants have been completed or are in the works. Here’s a sample of some of the changes:

Barnstable

HYANNIS - Bud’s Place at 959 Bearses Way is under new ownership. Late last month the Barnstable Licensing Authority approved the license transfers to the new owner House of Bud, Inc., Candace Chambers, Manager. According to their Facebook page, the 99 seat eatery and nightclub has been renamed House of Bud’s. In addition to the popular live entertainment and Karaoke, an expanded menu and an increased assortment of beverage selections will be offered.

Burger King North St HyannisHYANNIS -A new version of the the Burger King on North Street in Hyannis is under consideration. In a recent Site Plan Review hearing LBK, LLC (Lessee for Burger King) outlined a proposal to demolish the existing Burger King restaurant with drive-through and two drive-up windows and replace it with a new Burger King restaurant with drive-through and two drive-up windows. As proposed, the new restaurant will decrease the number of seats and result in no intensification of the use or structure. The project will require Planning Board approval to continue a nonconforming use (e.g, drive through).

HYANNIS - According to The Barnstable Patriot, on March 29, 2010 the Barnstable Licensing Authority will consider an application for Timmy B’s a year-round food, drink and entertainment establishment at 415 Main Street in Downtown Hyannis. Restaurants at the iconic former sea captain’s home have included The Asa Bearse House, The Ocean Grill and The Blue Room, Asa Grill, and Grille 16 at Asa Bearse House.

Falmouth

FALMOUTH - Citing the need for more seating, function space and more favorable lease terms, the popular Villaggio Italian Ristorante & Martini Bar will be relocating to the Falmouth Inn. The restaurant was established at 188 Main Street  in 2005 in the corner building previously occupied by Carmine’s. The final day at the former location was on Valentine’s Day. The new restaurant will also feature a new name and will open in mid-April or mid-May.

FALMOUTH - The Nobska House Restaurant at 327 Gifford Street next to The Coonamesset Inn is among the newest eateries in town. Over the years the restaurant has been home to Sorrento Cafe, Trabica, and for many years The Grasmere Pub.

FALMOUTH -Following the recent sale of the Mashnee Island Grill property, Quohog Republic Dive Bar will set up a new pub at the Falmouth Trade Center on Springs Bars Road, behind the Wal-Mart. The inline retail space was formerly occupied by Margo’s and Winston’s. According to the owner Erik Bevans, the new 50-60 seat pub is slated to open in mid April 2010 and will feature local and regional talent on weekends. The Quohog Republic beachfront bar was a local favorite for many during the twelve years it operated at the Mashnee Island Grill property on Phinney’s Harbor.

NORTH FALMOUTH - The Talk of the Town Diner and Talk of the Town Restaurant on North Falmouth Hwy. (Route 28A) in North Falmouth have both been replaced with new establishments. In January 2010, in separate hearings Selectmen granted new licenses to the establishments doing business as Baccari’s Diner at 362 North Falmouth Hwy. and Cape Cod Iggy, Inc. at 444 North Falmouth Hwy.

Mashpee

MASHPEE - A new restaurant called Starfish is planned for the restaurant space formerly occupied by Heather and Simmer at South Cape Village. According to a recent article in The Falmouth Enterpise the new seafood restaurant will be established by William Zammer, Jr. and David G. Mugar, of Cape Cod Restaurants, Inc.  The year-round restaurant will open in mid April 2010 and is likely to be well received.

Orleans

ORLEANS -In mid February the Orleans Board of Selectmen held a licensing hearing on the transfer of the All Alcohol Common Victualer License associated with Hunan Gourmet at 255 Cranberry Highway. The 99-seat restaurant is located in a 3,600 square foot retail unit in Bayberry Plaza (Underground Mall).

Provincetown

PROVINCETOWN - According to a website posting by Sullivan & Sullivan Auctioneers, LLC the the auction of the property at 85-87 Shank Painter Road, Provincetown, MA has been postponed to April 13, 2010. The multi-faceted property known for many years as Clem & Ursie’s, is described in the announcement as “36,430± sf of land improved by a 5,185 sf restaurant incl. bar, fish mkt, takeout & ice cream, mult. dining areas inside & out, 3 kitchens, seating for 150+, lots of parking (newly paved), zoning Gen’l/Comm’l.”

Wellfleet

SOUTH WELLFLEET - After much anticipation PB Boulangerie Bistro opened for business earlier this month. The opening includes the bakery portion with plans to possibly open the dining section as soon as next month. In addition to fresh pastries, croissants, and a variety of fresh breads baked daily, the new bistro will offer a breakfast, lunch and dinner menu. According to their website, ”Chef Philippe Rispoli and Baker Boris Villatte have brought the French tradition of baking and cooking to today’s contemporary living. Both are natives of France, coming from Lyon and Lorraine.” Initial reviews are positive for the baked goods described as being ”amazingly good” and putting us “in bread heaven“. All baked goods are prepared on the premises at this ”authentic French bakery and restaurant.” The property formerly comprised a clam shack for many years. In July 2009, the vacant property was acquired from its long time owners and has since been extensively renovated and converted to the 60-seat bistro. The property is located east of State Hwy./Route 6 at the intersection of (#15) Lecount Hollow Rd., and near the northernmost trailhead of Cape Cod Rail Trail (bike path) extended from Brewster to South Wellfleet in 2007. Lecount Hollow Road is the main access route to Lecount Hollow Beach located on the east.

WELLFLEET – Selectmen will hold a public hearing on March 23, 2010 to consider the request from D’Italia’s Restaurant, LLC to transfer the Annual, All Alcohol License to Falcone’s Restaurant and Pizzeria. D’Italia’s Restaurant is located at 955 State Road (Route 6).

Yarmouth

WEST YARMOUTH - Despite getting the green light from the Yarmouth Board of Appeals in September 2009, plans to redevelop the former Friendly’s at the corner of Higgins Crowell Road and Route 28 in West Yarmouth, MA have not moved forward to a major degree since September 2009. The proposal calls for razing and replacing of the existing restaurant structure with a 9,700 square foot CVS pharmacy with general sales and with drive through windows for prescription drop off and pick up.

SOUTH YARMOUTH – Yarmouth Lodge 2270 Loyal Order of Moose, Inc. is making strides in their plans to acquire Christopher’s Restaurant at 769 Route 28 in South Yarmouth. Christopher’s is permitted for a maximum occupancy of 382, one of the highest occupancies among restaurants on Cape Cod. Once the sale is finalized, the non-profit organization intends relocate activities from their current facility located nearby at 832 Route 28. The lodge will reconfigure the interior to include a ballroom, bar area, and main assembly room. The center of the facility will continue to comprise kitchen and office space, and few structural changes are planned.

Lost Dog Pub Finds Second Home

ORLEANS, MA – Tom Davis, Richard Catania and Adam Bauer of Weichert Dunhill Commercial of Hyannis, MA brokered the sale of the restaurant formerly known as The Coast located at 63 Route 6A in Orleans, MA. Weichert Dunhill Commercial  represented both the buyer Andrew and Jane Murphy and the seller Gulf Coast LLC. The former 136-seat restaurant will be re-established as The Lost Dog Pub. The Murphy’s are the owner’s of other Cape Cod restaurants and one in the U.S. Virgin Islands.

The recently renovated two level building has 4,560 square feet of GBA and is sited on a .64 acre lot offering a prominent location with multiple curb cuts and excellent signage.

The May 2009 transfer equated to a price of approximately $166 per square foot of GBA. Coastal Community Capital  arranged the financing through the Bank of Cape Cod .

The year round restaurant was built in the early to mid 1930′s as the first Howard Johnson’s  franchise in the US. In the years that followed and until about 2005 the restaurant was the well known Fog Cutter Restaurant.

fog-cutter-2005

File Photo: The former Fog Cutter

Hess Acquires Eleven Cape Cod Gasoline Convenience Stores

hess-logoOn January 30, 2009 Hess Corporation acquired 11 Christy’s of Cape Cod gasoline-convenience stores. The sale evidently included the outright purchase of six properties and lease assumptions on the remaining five facilities. The stores are located in Dennisport, East Falmouth, Hyannis (3), Osterville, Sandwich, South Orleans, South Yarmouth (2) and West Yarmouth.

The total consideration from the recorded deeds indicated a collective price of just under $17 million for the six purchased properties. Lorrie Hecker, Director of Communication – Marketing & Refining for Hess Corporation told CapeCodBusiness.com, “for competitive reasons” full financial terms of the transaction could not be disclosed.

The eleven sites, all of which include convenience stores, were quickly rebranded Hess. The company plans to hold grand openings in the spring to welcome customers and introduce the firm’s product line.

Hess is one of the leading independent gasoline-convenience retailers on the East Coast with 1,370 stations and convenience stores in 14 states including more than 100 sites in Massachusetts.

According to Hess company spokeswoman Lorrie Hecker, “The Hess team is excited about the opportunity to serve additional customers and expand our market presence on the Cape. Christy’s is one of the premier gasoline retailers on Cape Cod, and they share Hess’ commitment to providing customers with exceptional service and value. We see this as a strong fit with the Hess brand promise, and we are delighted to add these Christy’s sites to the Hess retail portfolio.”

All indications are that Christy’s Markets will continue to independently pursue gasoline-convenience stores projects intiated in 2008 which are located in Dennis and Chatham. 

chatham-mobil

Chatham Mobil at the rotary.

New Hands at the Wheel for Former Ford Dealership

Falmouth Ford, Falmouth MA

FALMOUTH, MA – Nearly one year to the day after it closed for business, the former Lighthouse Ford property at 343 Dillingham Road in Falmouth changed hands. According to a deed filed on November 11, 2008 the sale price was $1,150,000. or approximately $114/SF of gross building area. The buyer was listed as 1 Lewiston Street LLC, 278 Scranton Avenue, Falmouth, MA. The main business located at this address is Falmouth Marine. Ford Motor Company was represented by CB Richard Ellis. The asking price was in the range of $1.6 Million.

Lighthouse Ford closed in November 2007 as part of a dealership consolidation program spearheaded by the Big Three automobile manufacturer. The dealership was operated as Falmouth Ford for many decades up until 2004 when it became Lighthouse Ford. The property conveyed to Lighthouse Ford Inc. in July 2004 for $1.5 Million.

The special purpose property consists of the 10,080 square foot automotive building on a level 1.73 acre site. The structure was erected in 1967 and was extensively remodeled about the time it became Lighthouse Ford.

Ford dealerships continue to be operating in Hyannis and Chatham as well as in Wareham and Plymouth.

The widely reported troubles in the automotive sector have resulted in the closing of many dealerships in the past year. Quite coincidentially is the recent closing of a Long Island, NY dealership similarly named Lighthouse Ford which also opened its doors in 2004. A message on the NY dealership’s website sums up the situation this way, “Unfortunately as a result of the ever changing market and the stark economic reality facing this country Lighthouse Ford has decided to close its doors on October 31st 2008.”

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.”

 

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.”

Cape Cod Cooperative Bank Signs Tenant at New Building

Cape Cod Cooperative Bank Operations Center

 

HYANNIS, MA – Infor Global Solutions has leased 9,500 square feet of space at the recently completed Cape Cod Cooperative Bank Operations Center in Hyannis.

Infor Global Solutions, formerly Infinium Software, is a technology company with world headquarters in Alpharetta, Georgia. The firm is the third largest provider of business software in the world with approximately $2.2 billion in revenue, more than 70,000 customers globally and 9,000 employees. With direct offices in 125 countries, Infor provides and supports enterprise solution software to businesses ranging from aerospace to shipbuilding with 3,500 product specialists in 35 countries.

Cape Cod Cooperative Bank’s Operations Center is located in Independence Park and has 2,500 square feet of leasable space remaining available.

Cape Cod Cooperative Bank is an independent, mutual community bank with over $586 million in assets. Established in 1921, the Hyannis based bank has branches in Yarmouth Port, East Dennis and West Barnstable, as well as Sandwich, Hyannis and East Harwich.

Cape Cod Bank Branches Included in Sale-Leaseback Deal

In May 2008, Rockland Trust completed a $33.0 million sale-leaseback transaction with American Realty Capital Trust, Inc. a Jenkintown, PA based REIT.

According to a SEC filing completed by the REIT in the same month, the real estate only transaction included a portfolio of 18 commercial bank branches, branch bank/offices and operation centers located throughout Southeastern MA and Cape Cod. Together the properties comprise 121,000 square feet of Gross Building Area (GBA). The sale price equated to about $272 per square foot of GBA, including associated transaction fees and closing costs.

Rockland Trust will be the sole tenant at each property and the total annual base rent for all 18 properties is just over $2.3 million. The terms for each lease are fully net and the base terms range from 10-15 years, not including four concurrent renewal options. The average base rent for all 18 locations is $19.05 per square foot as set forth in the SEC filing.

According to the Form 8-K filing the six Cape Cod branches located in Centerville, Chatham, Hyannis, Orleans, South Yarmouth and West Dennis, total almost 27,000 square feet of GBA and conveyed for $9.121 million. The collective sale prices for the six Cape Cod properties accounted for about 28% of the total acquisition price and equated to $338 per square foot of GBA. The average base rent per square foot for the Cape Cod locations was also higher than the portfolio average based on the transaction information reported to the SEC.

Rockland Trust acquired the Cape Cod properties in 2000 following the divesture of Fleet branches after its merger with BankBoston. The most recent real estate only transaction did not include all Rockland Trust properties located in Southeastern MA and Cape Cod.

The number of sale-leaseback real estate transactions involving national and regional banking entities has increased in recent years. In mid 2006, American Financial Realty Trust acquired a portfolio of 236 Citizens Bank and Charter One properties in a $317 million sale-leaseback deal. The 2006 transaction also included selected branch locations on Cape Cod. As investors such as REITS continue to be attracted to quality net leased opportunities and more banks seek to tap the equity in these prime assets, sale-leaseback transactions are likey to continue in the banking sector.  

Independent Bank Corp. (NASDAQ: INDB) the holding company for Rockland Trust Company, provides commercial banking, retail banking, and investment management services in Massachusetts. Rockland Trust has a network of 61 retail branches, ten commercial lending centers, five mortgage banking centers and four Investment Management Group offices all located in Southeastern Massachusetts and Cape Cod. The growing community bank founded in 1907 and headquartered in Rockland, MA has $3.3 billion in assets. 

In March 2008, Independent Bank Corp. acquired Slade’s Ferry Bancorp, parent of Slades Bank. The transaction added nine new Southcoast MA branches to the Rockland Trust franchise.