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.

Hess Acquires Eleven Cape Cod Gasoline Convenience Stores

On 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. 

Brokers Strike the Right Match with Tinder Box Sale

Mashpee, MA- Kinlin Grover GMAC Commercial Real Estate based in Orleans, MA announced that Turnstone Enterprises has sold The Tinder Box to Jim and Cecelia Sullivan of East Sandwich, MA. 

The well known Tinder Box store located in Mashpee Commons next to Starbuck’s Coffee, sold for $175,000.  The acquisition also included a satelite location at a local golf course. The transaction was facilitated by Greg & Cindy Holmes of Kinlin Grover GMAC Commercial who represented both the buyer and seller.

The Tinder Box is a national franchise operating as Tinder Box International and currently includes a network of 148 stores located throughout the United States. In 1928, company founder Edward Kolpin opened the first Tinder Box store in Santa Monica CA.

The 1,200 square foot retail store (known as Tinder Box #399) specializes in the sale of cigars, pipes, lighters, humidors, gifts and an interesting assortment of smoking-related accessories.  In addition to offering traditional and exclusive cigar lines, the Mashpee store features a 30 foot humidified cigar wall and an 8′ x 12′ walk-in humidor, along with its popular smoking room with a large screen television, wet bar (BYOB) and convenient humidified lockers for its customers.

The Sullivan’s intend to continue The Tinder Box tradition of providing their growing number of loyal customers the finest in smoking products, gifts, accessories and expertise available on Cape Cod.

New Hands at the Wheel for Former Ford Dealership

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.”

 

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.”

Cape Cod Cooperative Bank Signs Tenant at New Building

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.