Developer Andrew Ingalls proudly displays a 1951 Gibson guitar in his commercial real estate office in South Portland.

Ingalls spotted the spruce-top guitar – dusty and forgotten – at an auction house, and instantly recognized its worth. He offered 50 bucks to the unwitting sellers and went home with a collector’s item.

Ingalls seems to have a knack for seeing opportunities that others miss. The 49-year-old South Portland native is pursuing commercial projects at sites in South Portland and Cape Elizabeth that other developers ignored or overlooked.

“I think Andrew sees under-developed parcels of land here and realizes their potential,” said South Portland Community Planner Steve Puleo.

“As a real estate agent, Andrew is always on the lookout for appropriate sites for clients. He’s creating those opportunities through his development projects.”

In 2006, Ingalls relocated his real estate company from Portland to South Portland, because it was affordable and convenient. When Ingalls opened the modest storefront office on Ocean Street, it became the first commercial real estate firm headquartered in South Portland. Running a real estate business on Ocean Street quickly opened his eyes to development possibilities that he previously did not see, Ingalls said.

“As a broker, you end up doing business where you are located,” Ingalls said. “I did not work a lot in downtown Portland, because it was a very tread-upon market and other developers already had a lock on the area.”

The picture was different in South Portland. Ingalls wasted no time in establishing a presence.

• In 2007, he developed a 19,000-square-foot industrial building on Thadeus Street that he divided and sold as warehouse-condos. “Eight business owners bought the 10 units,” he said. “They are 100 percent owner-occupied and increased the tax rolls from $4,000 to $28,000 for the city.”

• Also in 2007, Ingalls became a major player in the largest office building ever approved for South Portland’s waterfront business district. Construction will start this month at 100 Waterman Drive, a $6 million development. The high-end office suites will be sold as condominiums.

• Ingalls expects to close a deal this month on the brick Snow Squall restaurant building, which has been vacant for three years. Ingalls is acting as broker. He declined to identify the buyer until the deal is final. But the building is under contract, he said, and the buyer intends to put a restaurant and offices at the waterfront site.

• This year, Ingalls expects to complete an unusual building project in Cape Elizabeth. He is constructing an 8,000-square-foot, mixed-use building at 517 Ocean House Road. The project represents the first new commercial construction in the wealthy residential enclave in 20 years, said Ingalls, a Cape Elizabeth resident. The first floor will have commercial space, and the second will have four residential condominium units that are expected to sell for about $220,000 each. The condos each have two bedrooms and two baths.

Ingalls admits that his familiarity with the area helps him as a broker and developer. A South Portland native, he grew up on Bayview Avenue, which is off Cottage Road, near Willard Square.

He knows by name many of the small business owners in the Knightville/Mill Creek area. As a teenager, Ingalls worked behind the meat counter at Smaha’s grocery store.

Ingalls jokes that he still bears scars from foolishly trying to pry open a large can of olive loaf with a knife.

Yet the idea of hard work was instilled early in the three Ingalls children: Jim, Leigh and Andrew.

Andrew was the youngest of the three kids. They were educated in South Portland schools and all went to college at University of Maine.

Jim now lives in Alabama. Leigh Saufley became an attorney and now serves as chief justice of the Maine Supreme Court.

“I tease Leigh that she is the over-achieving older sister,” Andrew said, laughing. “But we were just middle-class kids.”

Ingalls describes his parents as “hardworking, honest, standup people.”

Ingalls’ father, Richard, and his grandparents ran H.B. Fleming, a construction company. His grandfather, Howard Fleming, started the South Portland business.

Richard Ingalls took over the business when Fleming retired. He ran H.B. Fleming until the mid-1990s, when he sold it. H.B. Fleming still operates today.

“From my standpoint Andrew’s lifeblood is in the Knightville/Mill Creek area,” said Eric Hartglass, who has known Andrew Ingalls for 30 years.

Hartglass, founder of the Mister Bagel shops, is a partner with Dr. Frank Read in the future office development at 100 Waterman Drive.

“Andy cares deep down inside for the best development for that area, taking everyone into consideration,” said Hartglass, who used to own a Mister Bagel store at the site. “He is proud and is working extremely hard on that project to make it compatible with the neighborhood,” he said.

Hartglass originally approached Ingalls for ideas about re-developing the site, which he was leasing to Beale Street Barbeque.

“Beale Street’s lease was going to expire, and Eric was looking for ideas to move forward with the lot,” Ingalls said.

“I was at the site for probably a half-hour and thought, ‘Boy, what a terrific place for an office building.’ The condo concept had worked well on Thadeus Street. I thought it would work well here, too.”

Ingalls won the support of Hartglass and then city leaders.

“I always felt that area was underutilized – with the view of the Fore River and the harbor and the lack of traffic,” Hartglass said.

The four-story complex the South Portland Planning Board approved last year will offer quality office space for sale. The market is intended to be professionals who don’t want to bear the costs of leasing office space in the Old Port.

“The vacancy rate for Class A office space is very low,” Ingalls said. “This building will be five minutes from downtown Portland and have everything the area has to offer at your back door.”

Ingalls estimates the office building will bring 100 to 200 people to the business district each day, who also will patronize ancillary businesses, like dry cleaners and small restaurants.

Added Hartglass: “There is tremendous potential here. It is so difficult to get in and out of Portland, find parking spaces and get things done. This building will draw attention.”

Andrew Ingalls says the slowing economy has made it difficult for some potential buyers Developer shows flare for recognizing city’s potential