Heritage Properties  – 142 Middle Street, Lowell

Situation

Heritage Properties is a multi-generational, family-owned company founded in Lowell, MA offering the best in apartment living throughout Massachusetts and Rhode Island. For years, their office was in downtown Lowell in the Executive Building (100 Merrimack Street), a multi-tenant building that they owned. Over time, they sold the building and leased, with a buy alternative, a smaller office space in downtown Lowell that more closely met their company needs and growth potential.

Building and Maintaining Relationships

Fred Faust of Bell Tower Commercial Real Estate Group had done business and had great respect for the Bush family, owners of Heritage Properties. At their request, for several years Faust had been keeping an eye out for suitable commercial property for sale in Lowell. So, when Faust was helping another Lowell business owner find a larger industrial property, he saw an opportunity to help both business owners.

Faust knew Lowell business owner, Peter Bergeron, owner of the Owl Stamp Building at 142 Middle Street for years. In addition to being one of Bergeron’s customers, Faust was helping Peter find a larger industrial building to purchase in Lowell as his business needed more space. The timing aligned to help both businesses achieve their goals by bringing loyal Lowell business owners together.

Faust initially listed 142 Middle Street for lease as Bergeron was not interested in selling the property. Faust showed the property to Jeff Bush and his father, Brian, both of whom immediately saw potential in the building with its the premium downtown location, exposed brick walls, structural beams and historic details.

Delivering Value

For years, Faust has built his reputation by focusing first on building strong relationships. By knowing each business owner, Fred envisioned how 142 Middle Street could be an ideal new location for Heritage Properties while enabling Bergeron to move his business.

While many commercial real brokers would never bring both parties together to negotiate, Faust was confident that in this specific situation, bringing these two individuals together could lead to a mutually beneficial agreement. Faust introduced both parties, being open and direct about his relationship with each of them and the goals of each party.

Overcoming Challenges

Like any transaction, there are challenges and complexities to resolve, and this situation was no different. Challenges included timing differences and Bush’s desire to buy the building while Bergeron preferred to lease.

Through negotiation, trust and mutual respect, the two parties reached an agreement. The two-part transaction included initially leasing the building with an agreement to then purchase 142 Middle Street some six months later. This agreement enabled Bush to secure desirable commercial space in downtown Lowell and allowed the seller, Bergeron, to time and sequence a potential 1031 exchange.