Mainebiz

V O L . X X X N O. I I I F E B R UA R Y 5 , 2 0 2 4 18 C O M M E R C I A L D E V E L O P M E N T D ozens of tradespeople are hard at work — floors, drywall, paint, cabinetry and much more — on a three-story, 72-unit building going up at 377 High St., a main drag in Ellsworth. Originally conceived as an apartment building, the developer, Jonathan Bates, switched gear to add short-term stays to alleviate a May-to-October hous- ing crunch that occurs during the peak tourism season. "We'll probably have 26 to 30 units for year-round leasing and the other units will lend themselves to May-to- October leasing, which is in massive demand," Bates says. "We'll also have weekly units and short-term units for, say, two-night stays." e May-to-October market includes professionals on temporary assignment with local labs and health care organizations, and seasonal tourism employees. Bates says he intends to offer reasonable rates compared with skyrock- eting short-term rentals. "No one is adding new supply and demand continues to grow," he says. On a recent tour, he shows Mainebiz a partially finished two-room unit fitted with granite countertops and window- sills, porcelain wall tiles and architectural post and beams. Points of pride include recessed spots for 65-inch TVs, full kitchens, built-in desks, and substantial soundproofing between units. Amenities include a gym and in-ground pool. Born and raised in neighboring Dedham, Bates identified residential development as an opportunity early in his career 12 years ago. "It was always my passion," he says. "If you locked me in a dungeon, I'd probably be designing buildings for free." Growing the numbers Bates's company, Stone Park Properties, has developed over 100 units of apart- ments and short-term rental units, pri- marily in Ellsworth. He scaled from sin- gle-family rentals to duplexes and up. e High Street project is his largest, with 50,000 square feet on three sto- ries, costing about $10 million. e target opening is May 1. "I saw the amazing amount of demand," he says. "And I said, 'Okay, that's where I'm going to add supply.' So we kept growing the numbers." "Growing the numbers" about sums up commercial investment activity in Ellsworth over the past year. Bates's project is one of quite a few underway or recently completed in the Hancock County city, which saw a sub- stantial uptick in 2023, with investment of $85.5 million into 570,000 square feet of projects that spanned new builds, expansions, improvements and renova- tions, says Janna Richards, the city's eco- nomic development director. e previous four years, construction ranged from $9.4 million to $18.7 mil- lion invested into 63,000 square feet to 124,000 square feet, with 2020 as the low. e previous high was 2018, when $30.52 million went into 346,265 square feet. At today's building cost averag- ing $150 per square foot, the 2018 figure would be $54 million — still below the 2023 figure. "Much of the commercial invest- ment we have seen has been in renova- tions or expansions of existing commer- cial businesses, or new businesses taking over the previously occupied space of a business that has vacated," says Richards. Much of that investment has been in the Ellsworth urban core, on water and Commercial development in Ellsworth is BOOMING Development-friendly policies spur new builds, expansions and renovation F O C U S P H O T O / F R E D F I E L D Jonathan Bates, CEO of Ellsworth development and management firm Stone Park Properties, says his 72-unit project aims to help alleviate a May-to-October housing crunch in Ellsworth. ELLSWORTH BIO: Regional service center for goods and services / Crossroads for travelers and commuters to Acadia National Park, Bangor, the downeast and midcoast regions, the Blue Hill, Deer Isle and Schoodic peninsulas, the Lakes Region / On the Route 1, Route 1A and Route 3 corridors / Near high-value assets: airports, higher education organizations, health care systems, recreational opportunities / 94 square miles — Maine's largest city geographi- cally / Population growth 21.7% from 2000 to 2015 — five times the state's growth rate P ROV I D E D P H O T O / C I T Y O F E L L S WO R T H Janna Richards, Ellsworth's economic development director, says the city saw a substantial uptick in commercial activity in 2023. B y L a u r i e S c h r e i b e r If you locked me in a dungeon, I'd probably be designing buildings for free.

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