As depicted in the following charts, commercial real estate transaction volume in Barnstable County, MA  increased modestly in 2010 with arms-length transactions outpacing the 2009 level.

In 2009 and 2010 in particular, conveyances involving distressed commercial properties of all forms continued on an upward trend. In 2010, nearly 27% of all transactions were distress conveyances involving commercial real estate assets in virtually every sector and Cape Cod sub region.

Note: Not all properties are conveyed to third parties through the auction process, a factor which has become more apparent in recent quarters.  Typically auctioned properties which are ultimately acquired by the mortgagee such as a bank, private lender or other lien holder at auction are held until they are eventually re-conveyed out of a REO portfolio or privately. A similar scenario may result in the case of a deed in lieu of foreclosure. Consequently, in calculating the transaction volume which is generally based on recorded conveyances, in some cases the data may reflect more than one conveyance for the same asset due the changing status.

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.

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.”

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

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 at the rotary.

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.”

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.”