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V O L . X X V N O. X V J U LY 2 2 , 2 0 1 9 16 R E A L E S TAT E / C O N S T R U C T I O N / D E S I G N "at's creating demand for older properties that have substantial square footage and can be purchased now at a fairly moderate cost," Herczeg says. "e same is true in Biddeford. You're seeing that area transition- ing from apartments that weren't great, that now, younger people especially, are looking to move into." He adds, "ere's only so much you can do in Portland. e market has peaked. Outside of Portland, you hit Westbrook, Saco, Biddeford, Bath, Brunswick – those are the areas you move to. For people who work in Portland, a 30- or 40-minute drive isn't bad." Who are the sellers? Typical sellers, says Soley, tend to be older people want- ing to retire from property management, who perhaps don't have any children to take over. "ey give me a call and say, 'I don't want do this anymore," Soley says. "Others are investors who are net-lease buyers but are willing to exchange smaller net-lease properties for larger ones." "Net lease" means renters pay other expenses, like property taxes on top of rent. "Net lease investment is far less management intensive and an easier investment strategy for indi- vidual looking to wind down," Soley adds. "Typically, these are older people who have held the properties for some time and are looking to capital- ize on the market," says Herczeg. "ey might have had tenants for many years and they've never increased rents according to what the market can bear. ey might have a two-bedroom apartment that they're only charging tenants $900. A buyer sees he could easily charge $1,200 to $1,400 and will pay a little more for the property based on the upside." Upside e Henrys have been on both sides of the equa- tion, financing new purchases in part by selling other properties. In Portland's West End, they purchased three buildings with 23 units for $2.9 million. Soon after, they sold two of the buildings for a combined profit of $384,000. at money then helped to finance the $3 million purchase of the Augusta portfolio. ey've sold multi-residential holdings in New Hampshire to reinvest in Maine. ey're eyeing other areas of Maine, including Biddeford and » C O N T I N U E D F RO M PA G E 1 4 F O C U S P H O T O / T I M G R E E N WAY P H O T O S / C O U R T E S Y O F M A I N E R E A LT Y A DV I S O R S Maine Realty Advisors broker Josh Soley sees new investors looking for small multi-family homes, while experienced investors are building their portfolios. HOUSES BELOW LEFT TO RIGHT: 138–140 Pine St.; 11 Carleton St.; 21 Dow St.; all brokered in part by Maine Realty Advisors last year

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