WATERVILLE — The Hathaway Creative Center on Water Street, which several years ago was transformed from a former shirt factory into retail offices and 67 high end apartments in an effort that jump-started downtown revitalization hopes, is now for sale.
The property is listed on loopnet.com as a five-story, 236,000-square-foot mill building at 10 Water St. that is 83 percent leased. The sale price is not listed, but the city’s assessed value of the building and parking lot is about $9 million.
“Hathaway Creative Center offers a rare combination of a richly historic building with a stable income and significant upside potential in a top Maine office, retail and residential market,” according to the listing by CBRE/The Boulos Company.
Hathaway co-owner Paul Boghossian said Thursday afternoon that he will continue to own the adjacent former Central Maine Power Co. and Marden’s Industrial buildings and selling his part in Hathaway will give him more capital to invest in the other two buildings. He may continue to be part of Hathaway after it is sold, he said.
“There’s been strong interest in it,” Boghossian said. “It’s good for us because our investors have been very patient. They hadn’t seen any return. It’ll be really nice to pay our investors. There are a few people interested who are what I would call ‘potentially friendly buyers’ who would want me stay as part of the team.”
Boghossian and Niemann Capital LLC, of North Carolina, are majority owners of Hathaway, and Boghossian said others also own part of it. The broker on the Hathaway listing is Joseph Porta, who was not immediately available for comment Thursday.
“I’m not going anywhere,” Boghossian said. “My preference would be to own part of all three buildings instead of selling Hathaway and owning the other two.”
The 67 high-end apartments in the Hathaway building are full with a waiting list and rent for between $800 and $1,900 per month, according to Boghossian.
City Manager Michael Roy said Thursday that he was aware the Hathaway building is for sale and is confident it will continue to grow.
“We’re thankful for what Paul Boghossian and the Niemann Capital folks did in resurrecting that building,” Roy said. “I think it helped to jump-start everything else that’s been happening in and around the downtown. It was a very critical first piece and it will continue to play a very critical role going forward, so although we don’t want to see those folks disappear, we are confident that the sale will be to someone else who will continue in the same vein that they have.”
Garvan Donegan, senior economic development specialist at Central Maine Growth Council, said Thursday that he did not want to comment on anything specific about the Hathaway sale but said he does know some buyers are interested.
“Hathaway has gotten several interest requests, and I would expect us to see a potential change of real estate shortly,” Donegan said.
He added that the purchase of buildings in the heart of the city follows a trend that is occurring as downtown revitalization efforts ramp up. Colby College has bought several downtown buildings as part of those efforts with plans for renovations, building a student dormitory downtown and demolishing some buildings, including a 102-year-old building that will make way for more parking.
In addition, Colby College alumnus Matthew Hancock recently purchased the Let’s Talk Learning School space on Temple Street, according to Donegan. He said Hancock is cleaning and putting money into the building and plans to lease the space.
Meanwhile, the Boulos listing says Hathaway, located downtown next to the scenic Kennebec River, is occupied by MaineGeneral Medical Center, Healthreach Network, Nalco, Cengage Learning and Collaborative Consulting, among others.
“Currently, 26 percent of the commercial space is in warm shell condition, presenting a tremendous opportunity for new ownership,” the listing states. “Given the excitement surrounding and investment occurring in Waterville right now and the paradigm shift in tenant preferences, The Hathaway Creative Center is perfectly positioned to deliver long-term income growth and value appreciation.”
C.F. Hathaway & Co. was built in 1881 and made shirts at the building until 2003, when it closed. Boghossian redeveloped the mill building for about $30 million.
A Rhode Island resident, Boghossian is a graduate of Colby College in Waterville.
Boghossian said he is happy about being involved in revitalization efforts downtown. “It’s an exciting time for Waterville, clearly,” he said. “The city is on the move. It will look and feel like a very different place.”
Boghossian said he thinks there is a huge interest in having more residential space downtown, and his two buildings next to Hathaway have the potential for that, as well as for a food-related business.
“I’m incredibly excited about the trajectory for Waterville,” he said, “and I think we’ve got an exciting future.”
Amy Calder — 861-9247
Twitter: @AmyCalder17
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