WOODS HOLE – In mid December 2009, public service broadcaster WGBH purchased the historic Davis House at 3 Water Street in Woods Hole from fellow nonprofit the Children’s School of Science. The move will enable WCAI to continue its radio operations here, and give new life to the 164-year-old building. The recorded deed indicated a purchase price of $670,000. 

“We’re delighted that this wonderful space we’ve rented for eleven years will now become our permanent home,” said WCAI Station Director and WGBH Radio General Manager John Voci.

Since 1998, WGBH has leased the building for WCAI, the Cape and Islands NPR Station, and its repeater services WNAN and WZAI. All are listener-supported public radio stations serving Cape Cod, Nantucket, Martha’s Vineyard, and the south coast.

The exterior of the Greek Revival structure is in poor condition and in need of substantial repairs. In January WCAI will launch an appeal for public support for a Renovation Fund to help restore the building. Immediate needs include a new roof and windows, and the removal of asbestos siding.

“With WGBH’s involvement and the help of our listeners, WCAI will preserve and protect this prominent town landmark for future generations of Woods Hole residents and visitors,” said Voci.

According to Susan Witzell, Archivist and Assistant Curator of the Woods Hole Museum, The Davis House was built in 1845 for Civil War veteran Captain Thomas G. Davis. At one time the house had a store on the first floor with living quarters above, she said. “It was beautiful.”

“The Davis House sits at the gateway of Woods Hole and helps define the historic character of our village,” said longtime resident Thomas J. Hynes, Jr. “Many of us were concerned that the building might be purchased for its location and then demolished to make way for new construction. We are delighted that the property will remain with our friends at WCAI, who have proven to be good neighbors. I know they will be careful stewards of this classic landmark.” 

WCAI, the Cape and Islands NPR station, is broadcast on 90.1FM, 91.1FM and 94.3FM and WGBH HD3, 89.7 Boston. The station is listener-supported public radio serving Cape Cod, Nantucket, Martha’s Vineyard, and the Southcoast.

WGBH Boston is America’s preeminent public broadcaster, producing such award-winning PBS series as Masterpiece, Antiques Roadshow, Frontline, Nova, American Experience, Arthur, Curious George, and more than a dozen other prime-time, lifestyle, and children’s series and websites.

WGBH Radio serves listeners from Cape Cod to New Hampshire with 89.7 WGBH, Boston’s NPR® Station for News and Culture; 99.5 All Classical; WCAI for Cape Cod and the Islands; WNCK on Nantucket; and the All-Classical WGBH HD channel.

Nestled in the extreme southwest portion of Barnstable County, MA within the Town of Falmouth, the village of Woods Hole is argueably the most diverse, enduring and unique of all the many business districts located on Cape Cod. Just ask anyone with a connection to Woods Hole and they will proudly tell you that’s just the way it is and how they have liked it for decades.

In such a small, densely improved and hard to access village the level of local, regional and international economic activity transpiring behind the scenes here is literally astonishing. 

In Woods Hole, the dominant economic driver for over a century has been the two world renowned educational and research centers, Marine Biological Laboratory (MBL; established in 1888) and Woods Hole Oceanographic Institution (WHOI, established in 1930). Over the years complimentary organizations such a The Sea Education Association and the highly recognized Woods Hole Research Center have been major enhancements to the Woods Hole community.

Business sectors such as tourism, year round and seasonal residency, eating and drinking establishments, creative arts, fishing, marine trades, and retail trade all meld together and add to the flavor and economic vitality of this small business cluster. The highly active Steamship Authority Terminal, WHOI Exhibit Center, U.S. Coast Guard base, and the popular National Marine Fisheries aquarium all add to the seasonal bustle. It is important to note too that all of this activity is happening in the presence of ongoing freight, auto and passenger ferry traffic and a small drawbridge separating the Woods Hole business district at its center! It’s no wonder these factors make bicycles and walking the preferred modes of transportation in Woods Hole.

Among residents, business owners and those working here, community pride and a clear sense of place  is prevalent. In any given day, it is not uncommon to stroll the streets of Woods Hole and hear visiting scientists, researchers, and interns conversing in a range of foreign languages. Organizations such as the The Woods Hole Community Association (organized in 1919) and Woods Hole Business Association go a long way in strengthening and nurturing the fabric of the community.

Over the years, transition in the business community and commercial real estate sector has been low in Woods Hole. Since many commercial properties are owner-occupied, the rental market is extremely tight. Recently, however, certain developments worth noting have surfaced.

In October 2009,  Martha’s Vineyard Saving Bank made it known it intends to establish a branch at the former Bank of America branch bank at 2 Water Street. The branch was one of four Cape Cod locations the large national bank announced in June 2009 that it would close in following months.

This summer, The Penikese Island School acquired the office building at 565 Woods Hole Road for $850,000. Founded in 1973, The Penikese Island School is a small therapeutic boarding school for teenage boys on Penikese Island located 12 miles southwest of Woods Hole, MA. The two story 2,600 square foot c. 1806 building overlooks Little Harbor and has on-site parking. The school previously occupied the building as a tenant for many years and will continue to house their administrative offices at this location. The acquisition was financed by Eastern Bank with a loan guarantee from MassDevelopment.

In November 2008, the Cape Cod Commission approved as a Limited DRI, Wise Living at Woods Hole, 43-unit independent senior living facility at the Nautilus Motor Inn located at 533 Woods Hole Road. The project proposes the demolition of the existing 54-unit Nautilus Motor Inn and removal of the existing pool and tennis courts. The design of the proposed two- and three-story buildings will be in a “shingle” style with gambrel roofs and extensive porches and balconies. As part of the redevelopment project, the geodesic dome in the southeastern portion of the 5.41 acre site will be rehabilitated. The dome structure building was designed by R. Buckminster Fuller and built in 1953-1954. For many years the dome structure comprised a 170-seat restaurant (Dome Restaurant), a use which ceased in about 2002.

The Falmouth facility, formerly operated under the Uncle Bob’s brand, is located between East Falmouth Highway and Village Common Drive. The property has 79,495 rentable square feet in five two-story buildings. Among the 749 individual storage units, 30,000 square feet comprises climate-controlled space. The facility was originally built as Burlington Self-Storage in 1997 and expanded in 2001.

According to filings at the Barnstable County Registry of Deeds, the property was acquired from Sovran Acquisition LP for $4.6 million. Sovran, a REIT which owns and/or operates over 350 self storage facilities in 24 US States under the trade name Uncle Bob’s Self Storage®, previously acquired the property in 2005 for an indicated purchase price of $7.2 million.

According to David Levenfeld, co-founder and CEO of StorageOp, there were some mitigating circumstances which accounted for the price difference. “The Falmouth facility is a relatively large one and perhaps the occupancy projections adopted in 2005 were aggressive. And like all commercial property sectors, the self-storage sector has taken its share of nicks,” he said.

In addition to rebranding the property to Storage Pros Self Storage, future plans for the Class A Falmouth facility include offering larger spaces of up to 1,000 square feet for local businesses and becoming more involved with the local business community.

The Fairhaven facility contains 41,500 square feet of rentable area in six single-story buildings containing 337 storage units and 24 outdoor parking spaces for rent. The property was also formerly part of the Sovran portfolio and has been rebranded to Storage Pros Self Storage. The new ownership will update the Fairhaven property and convert 6,100 rentable square feet of existing space into climate-controlled space. Budget Truck Rental will also be added.

The recent acquisitions brings StorageOp’s holdings to 13 properties collectively offering 780,000 rentable square feet, 6,800 units and more than 950 outdoor parking spaces for rent in its initial target markets of New England and southeastern Michigan. All 13 properties were acquired within the last 28 months.

The properties will be operated by Storage Pros Management LLC, a wholly owned subsidiary of StorageOp, which also offers third-party self storage property management services.

David Levenfeld, co-founder and CEO of StorageOp, commented, “Once again, our strong investor base and solid financing relationships have allowed us to further implement our acquisitions strategy in New England at a time when the capital markets continue to pose enormous challenges. We intend to continue our disciplined growth strategy within our core markets.”

When I began entering commercial real estate data into a database in 1995, I never imagined it would mark the beginning of an evolving 14 year project. And the same project would wind up having an unusual but suitable name.

Today the product of this effort is a powerful proprietary analytical tool which is being leveraged to provide exceptional benefits for discerning valuation clients throughout Southeastern Massachusetts.

Known as the  Market Mouse database, as a reference to the agility of a mouse in maze adeptly probing and efficiently navigating in search of the most optimum destination or outcome,  this relational database truly is one Mighty Mouse! 

Market Mouse has little resemblance to an automated valuation model (AVM), statistical data product or “valuation instrument”. Indeed, time tested skills such as technical aptitude, cognitive thinking  and constant street level information gathering are still employed. Rather the  Market Mouse data management system has a supplemental role in much of valuation and brokerage activities in which I am retained.

Today the database contains close to 6,500 individual commercial property, transaction and listing records totalling over $3.0 Billion among 70 individual property classes. Linked to 1,300 of the property records are high quality digital images. 

Since its humble inception, a consistent “quality in and quality out” focus has been at the core of Market Mouse. Along with this commitment is the drive to develop unique and meaningful data sets achieved through a range of sorting, filtering and grouping capabilities. Whether analyzing by location, name (buyer, seller, lender or broker), property type or characteristic, time frame, and a host of dollar ranges, its all possible with Market Mouse.

The majority of records cover properties within Barnstable, Dukes (Marthas Vineyard) and Nantucket Counties. In 2007 and 2008 along with a series of tweakings completed by one smart professional programmer, data collection was expanded to nearby Bristol, Plymouth and Norfolk Counties. To date, these efforts have provided a solid return on investment on several levels.

Contact me today and discover how Market Mouse can further your goal of deriving real benefits and reliable outcomes in your next valuation  project whether for one property or a portfolio.

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 650 appraisal, brokerage and consulting assignments concerning all types of commercial real estate assets and going concerns located on Cape Cod, Martha’s Vineyard, 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.

Edgartown, MA- While most market areas are currently experiencing contraction and increasing distress, commercial property fundamentals in the small Down Island business district in Edgartown on Martha’s Vineyard, MA appear to be as favorable as the refreshing summer winds from nearby Edgartown Harbor.

The sale of three retail condominium units acquired in early June 2009 provides some sense of the prevailing winds. 

The three units are located at 4 & 8 Main Street within the Harborside Inn Condominium. The condominium is located on (Lower) Main Street, between North Water and Dock Streets and next to The Boathouse, a recently completed 10,000 square foot private club at the site of the former Navigator Restaurant. 

The location is the busy hub of the established Edgartown business district, an area which generates consistent pedestrian traffic along the brick paved sidewalks uniformly connecting the many mostly seasonal specialty shops and eateries. In addition to a designated Historic District, much of the neighborhood is within Edgartown’s B-1; Business 1 zoning district.

The ground floor commercial units known as Stores A, B & C feature generous display windows and range from 702 to 1,508 square feet and total 2,864 square feet. The recent $2.4 million total sale price amounts to approximately $838 per square foot of gross unit area or an average of $800,000 per unit. The purchasers were a local couple with several commercial property holdings in the Edgartown core business district.

At the time of the sale the units were reported to be fully leased to Chappy’s and Island Pursuit, two affiliated mens and womens clothing shops. Island Pursuit was established in 1983 and offers a wide assortment of luxury brands including Bugatchi Uomo, LaCoste, Lilly Pulitzer, Reef, Tommy Bahama, and Vineyard Vines. In addition to four Florida stores, the retailer has stores in Chatham, MA, Newport, RI and Nantucket, MA.

This recent conveyance is one of only a handful of mostly off-market commercial property transactions recorded in Edgartown over the past 18 months. According to several local sources, the low transaction activity is primarily a function of the buy and hold mindset of many local investors resulting in a limited array of available investment opportunities.

View along North Water Street in Edgartown.

Despite rental rates in the general range of $35.00 to $70.00 per square foot for retail space in the prime pedestrian areas, vacancies are minimal especially by late Spring or just before at the start of the peak summer season. Most rental requirements are in the range of 700 to 1,500 square feet of net rentable area. Reflective of both the tight supply and the close network of  local merchants, it is not uncommon for landlords to receive inquires from prospective tenants either before a tenant moves out or when the vacating tenant is literally in the process of moving. Reportedly, new occupancies include a combination of new businesses and existing businesses desiring to trade up to superior space.

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.

File Photo: The former Fog Cutter

Kinlin Grover’s 11 offices are located in: Barnstable, Brewster, Chatham, Falmouth, Harwich Port, Orleans, Osterville, Sandwich, South Yarmouth, Wellfleet, and Yarmouth Port.

Randall Realtors offices are located in Rhode Island and Connecticut. The five Rhode Island offices are in: Charlestown, North Kingston, Wakefield, Watch Hill and Westerly. The company’s Connecticut offices are in Mystic and Waterford. Randall Realtors was established in 1977 as H.D. Randall Realtors in Charlestown, Rhode Island.

Kinlin Grover was founded in 1992 and has grown to  include 11 real estate offices located throughout Cape Cod, MA. In addition to commercial real estate brokerage, second home sales, and property management services Kinlin Grover Vacation Rentals is the largest vacation rental firm on Cape Cod.

The Flying Bridge is truly one of Cape Cod’s landmark restaurants. Situated on Falmouth Inner Harbor, the restaurant was built in 1957 by Fred Wormelle. The prominent location and stylized design which included an abundance of glossy wood and sleek tourquios seating embodied all the glamour and style at the height of the post-war boom era. In addition to some dockage, the 14,000 square foot two-story structure has seating for over 500 including outdoor seating on the harbor view decks.

The Wormelle family operated the restaurant until the mid 1980’s until it was sold to local restaurantuer and radio talk show host Don McKeag. The Wormelle’s went on to invest in East Marine, a small marina located on the opposite side of Falmouth Inner Harbor. About three years later the restaurant was sold to another operator who ultimately lost the property in a foreclosure. In 1992, the property was acquired at auction for $1.1 million by the current owner a Wellsley, MA based investor. Two years later, The Flying Bridge restaurant operation was placed in the able hands of local restauranteur and benefactor William Zammer who has done a fine job of restoring the stature and appeal of this landmark waterfront dining place.

Click here for current information on The Flying Bridge.

In far more than a handful of recent deals involving all kinds of commercial properties and Cape Cod businesses, the buyer has been someone the seller knows or is affiliated.

Most often this association is rooted in an existing business, landlord-tenant or employment relationship. In many other instances the buyer just happened to be an adjacent property or business owner.  In business sales, an amicable deal with a competitor or supplier has brought some others to the closing table.

It appears these deals are being struck as private “off-market” transactions suggesting the phrase, “When you’re ready to sell, let me know.  I may be interested,”  is paying off for many motivated buyers.

Naturally, the primary reason why these buyers are particularly motivated is the synergistic benefit the opportunity typically offers. Since the property or business is familiar to the buyer, the lower degree of pre-purchase due diligence can be an added incentive. Bankers seem to be willing to warm up to these types of transactions as well. For some, dealing direct and the potential to save on transaction costs are often perceived as another mutual benefit.

Despite what appears to be a favorable outcome, there is some downside to selling to someone you know under a private transaction.  

First, whether a business or property sale, choosing not to expose the opportunity to the open market will limit the chances of obtaining a maximum price and optimum terms which would otherwise be achieved through competitive bidding among multiple buyers. 

Second, experience has shown that private sales tend to begin with some general conversation on the topic and then quickly ramp up from there. Absent proper planning and pricing this can put both parties in an awkward and sometimes untenable situation where they eventually ask, “How did we get here and this fast?” 

Sound financial planning, legal and valuation assistance is the best hedge against these risks. 

For motivated commercial property and business sellers looking to privately transact with someone they know, the take away here is this:

The prospective buyer is likely to have a unique benefit to leverage and a solid familiarity of your business or property. And to be confident you are striking the right deal, be sure to first obtain proper financial, legal and valuation assistance.

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.

If all goes according to plan, Sapphire Engineering, Inc. will be relocating operations from Bourne to Middleborough, MA.

Sapphire Engineering, Inc., a subsidiary of IDEX Corporation, is a U.S. health and science manufacturer of custom precision analytical and diagnostic components for original equipment manufacturers.

The firm is now located in a leased facility which it has been occupying for many years. This 38,100 square foot flex facility built in 1978, is located just west of MacArthur Blvd. at 53 Portside Drive in Pocasset, MA (pictured above).

The Company, however, has outgrown existing facilities in Pocasset and Hopedale, MA and is seeking to relocate and consolidate its operations in a central facility. Sapphire Engineering, Inc. plans to retain all 170 full-time manufacturing jobs from the two Massachusetts facilities. The move is also slated to create 15 new permanent full-time jobs.

Under the relocation and consolidation measure, the business plans to invest a total of $11.8 million in the Town of Middleborough. This figure includes construction costs associated with the interior build out, clean room space, new machinery and equipment, and projected future investments estimated at $3.5 million.

The proposed facility will be located within Campanelli Business Park of Middleborough, a modern park located off of I-495. Major tenants currently in the park include Christmas Tree Shops (530,000SF), NES Clothing Co. (275,000SF), Serta Mattress Co. (150,000SF).

Although Sapphire Engineering will initially lease approximately 80,000 square feet of manufacturing space, the occupancy includes the option to add 20,000 square feet of expansion space. Construction of the proposed building is scheduled to begin this Spring.

An incentive for making the relocation is a Tax Increment Financing (TIF) component, a feature of the Massachusetts Economic Development Incentive Program (EDIP). The TIF was widely approved at Middleborough Special Town Meeting in October 2008.

Like any good and supporting member of the community, Sapphire Engineering, Inc. will be missed.