People’s Bank Building Sells for $1.7 Million

A key building in the heart of the downtown business district has sold for $1.7 million to a local investor.

Chris Everest, president of Nordlund Associates of Danvers, reported on Tuesday that People’s United Bank sold its building for $1.7 million to M and R United Realty Trust.

The building is at 310 Broadway and contains 15,656 sq. ft. of retail/office space and is about 50 percent occupied.

“It was a private local investor who purchased the building,” said Everest, who was not at liberty to say who controls the trust that purchases the building. “The tenants Rizzo Insurance and People’s Bank are remaining in the building. There will be space available on the second and third floors available for lease. That hasn’t been available for lease for quite some time and so it will be an exciting opportunity for anyone who wants to be involved in the community.”

Everest said the purchase was a unique opportunity because properties within an established business district don’t often go up for sale. He said when they do, investors are looking to purchase buildings that they will either occupy partially or lease or both.

“This is what I call Main Street USA properties and there is a unique opportunity for companies to acquire assets like these while interest rates are low,” he said. “The cash flow and debt service on a mortgage is often less than the leasing costs. It’s a good time to purchase these properties and rehabilitate or repair them and bring them into the 21st Century. I think we’re seeing a move now for owner-occupants to acquire properties. If it’s a multi-tenanted property, then the rent from those tenants can even further offset the mortgage costs.”

Nordlund Associates, Inc. is a full-service commercial real estate firm serving tenants, landlords and investors by facilitating the acquisition and/or divestiture of properties through traditional and innovative strategies.