In a deal that will contribute to revitalizing South Portland, Maine's only nonprofit food business incubator and shared manufacturing and processing facility was able to proceed with a key expansion.
The acquisition of 95-97 Darling Ave. by Fork Food Lab from East Brown Cow presented numerous challenges and opportunities, showcasing innovative solutions across various elements. The deal has been selected as the winner of the 2024 CoStar Impact Award for sale of the year, as judged by a local team of real estate professionals familiar with the market.
Fork Food Lab is a membership-based shared facility that includes commercial equipment needed for food production.
The primary objective of transforming the 42,000-square-foot office space into a master kitchen facility required thoughtful design as Fork Food Lab sought to accommodate more diverse food businesses.
The challenge lay in creating a space that fosters collaboration and efficiency. The distinctive design had to balance functionality, compliance with health and safety regulations, and the unique needs of various food producers.
The expansion to Darling Avenue allowed Fork Food Lab to overcome the limitations of its previous location, catering to a growing membership list. The move enabled the inclusion of a more diverse range of tenants, accommodating food trucks, caterers, and specialty food producers.
Fork Food Lab's expansion not only benefited the organization but also positively impacted the neighboring community.
By repurposing a property that East Brown Cow held off the market for 18 months, Fork Food Lab contributed to the revitalization of South Portland.
The financing structure for the project was intricate, involving a combination of grants, private equity, and conventional financing.
Fork Food Lab's collaboration with East Brown Cow and Malone Commercial Brokers exemplifies a successful public-private partnership in which for-profit property management and commercial real estate companies support a non-profit organization's mission.
The partnership provided the necessary flexibility and time for Fork to secure funding and close the deal with East Brown Cow, and Malone Commercial Brokers demonstrated creative leasing strategies leading up to the sale.
East Brown Cow's decision to lease the space to Fork Food Lab during the financing phase showcased a commitment to the nonprofit group's mission. Structuring the deal this way, not only allowed Fork to start investing in the property before finalizing the sale but also served as a form of creative financing that benefited all parties.
The financing challenges faced by Fork Food Lab, including the last-minute withdrawal of a $2.5 million investment, emphasized the need for innovative financing solutions.
Securing a lease agreement with East Brown Cow served as a strategic pivot, allowing Fork to continue operations and invest in the property while navigating funding setbacks. The eventual financing through the Finance Authority of Maine and Mascoma Bank demonstrates adaptability and resilience in the face of unforeseen challenges.
About the Project: Fork Food Lab bought the property for $5.9 million from East Brown Cow in a deal brokered by Joe Malone and Jennifer Small of Malone Commercial Brokers, representing the seller, and Brice O’Connor of The Boulos Co., representing the buyer. At the time of the sale, Fork Food Lab was leasing 100% of the space.
What the Judges Said: "Great repurposing of an office building and an excellent service to the community," said Justin Lamontagne of The Dunham Group.
They Made It Happen: Joe Malone, founder and president of Malone Commercial Brokers. Jennifer Small, partner and associate broker with Malone Commercial Brokers. Brice O'Connor, a broker with The Boulos Co.