Redstone, a Vermont-based developer and property management company, has purchased a large industrial building at 203 Read St. Redstone also owns 608 Congress St., which houses The State Theatre. Courtesy / The Dunham Group

PORTLAND — A Vermont company has purchased a Read Street warehouse and will lease its 167,000 square feet of industrial space in a high-demand market.

Redstone, a developer and property manager, purchased 203 Read St. last month for $10 million. The building has been occupied for 50 years by Brockway-Smith Company (Brosco), a window, door and millwork distributor that will relocate in October to 7 Rand Road.

“When 203 Read Street came up we jumped on it for a few reasons,” said Joe Engelken, a Redstone associate.  “We’re optimistic about the industrial sector in Portland. We’ve watched the fundamentals in this sector trend in the right direction and expect that to continue as e-commerce, shipping, and other businesses continue to expand.”

The location, close to I-295, the Portland International Jetport and downtown Portland, make it a convenient site “for almost any business in need of warehouse space,” he said.

The 167,000-square-foot building, includes 7,000 square-feet of air conditioned office space, 14 loading docks and can be easily subdivided into smaller spaces. Courtesy / The Durham Group

Once Brosco moves out, Redstone will work with The Dunham Group to find a tenant or tenants.

The building includes more than 7,000 square-feet of air conditioned office space, 14 loading docks and “can be easily subdivided into smaller spaces,” according to The Dunham Group.

“The building is in great condition. It’s not uncommon for industrial properties to get beat up over time, but that’s not the case here,” Engelken said. “When I first toured the building it was immediately clear to me that Brosco has taken excellent care of this space.  You would never guess they’ve been there for over 50 years.”

Joe Meader, associate broker with the Boulos Company, said in his company’s 2020 Maine Market Outlook that the “Greater Portland industrial market continued to solidify itself as one of the most sought after investments in the region” in 2019.

The supply, however, is limited due to the large number of industrial site that are user-owned and occupied. Many of the spaces that are available for lease, Meader said, “are functionally obsolete” and don’t meet necessary physical or distribution needs. Furthermore, Meader said, “land that offers a suitable location and reasonable construction economics for industrial product is diminishing.”

Redstone first got into the Maine market in 2015 when it purchased 609 Congress St., which houses The State Theatre and a number of other local businesses. Engelken said this latest real estate transaction does not impact that building.

Engelken said that building, which over the last few years has received a new historically accurate marquee and improved heating systems and common area lighting, continues to be a long-term investment for Redstone.

“The diversity of businesses and the level of entrepreneurship at that building is remarkable and is something we feel lucky to be a part of,” he said.

The Dunham Group could not be reached for comment.