AUGUSTA — In what is being billed as one of the largest subsidized multifamily real estate deals in recent years, the apartment complex at 82 Glenridge Drive has been sold for $8.025 million.

The transaction, which closed at the end of January, comes as the new owners are looking to convert some of the market-rate units at the 120-unit property into subsidized housing.

“It is rare to see a 120-unit complex hit the market in Maine,” said Nick Lucas, a Boulos Company broker who also worked on the deal, “and investors who specialize in acquiring affordable housing were drawn to it.”

Midland Capital Partners, the new owner, is expected to renovate every unit at the housing development. Financing for that is being provided through the Maine Housing Authority and Midland is expected to convert some market-rate units to subsidized units.

The sale comes as city officials have flagged a lack of affordable housing options as a key issue, saying there’s a severe shortage of housing of all types in Augusta, but especially affordable housing for seniors.

Tony McDonald, a partner and broker at The Boulos Company, which handled the transaction, said its prior owner, Silver Street Partners, decided to sell the property as part of a strategic decision to focus capital on larger subsidized housing projects.

The property was marketed for a few months, said Lucas, the Boulos broker. “During this time, we conducted a nationwide search for buyers, which resulted in multiple offers on the complex,” he said.

In all, eight significant offers were submitted. The interest by prospective buyers was driven in part by the size of the project, he said, as well as its status as subsidized housing.

Midland Capital Partners was selected based on its experience in buying and operating low-income housing projects in the state.

A request for comment from Midland Capital Partners was not immediately returned Wednesday. 

City of Augusta property records shows that the apartment complex was built in the mid-1970s.

Lisa Morin, assessor for the city, said the property transferred ownership from New Glenridge Development LLC to Glenridge Housing Associations LP on Jan. 22.

“That’s one of our larger transactions,” Morin said, noting that other similar transactions have not been as large. In 2009, the Green Tree Apartments on New England Road sold for $2,425,000.

“Glenridge and Green Tree are the biggest housing complexes in the city,” she said.

While Maine has a need and a demand for affordable housing, McDonald said, the path to building that kind of housing is not straightforward.

“Land costs and low-density zoning are the biggest issues,” McDonald said in a statement released by the real estate company. “With program caps on rental rates and construction costs non-negotiable, the key is keeping the cost of acquisition and development down. There has to be flexibility somewhere. To make these projects work, specializing financing and use of the low-income tax credit are absolutely key.”

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