A plan to turn the struggling Bangor Mall into a mix of homes, medical offices and shops hit a serious snag this week.
The local investor group working to buy and redevelop the mall has lost its lead investor in what the group's leader called an 11th-hour setback, WMTW 8 reported.
"A gut punch"
Mike Cole, who leads Bangor Marketplace and Residences LLC, told WMTW media partner WABI that losing the lead investor was a "gut punch."
Cole said the investor stepped away for personal reasons. He wouldn't say who the investor was or explain the reasons, according to WMTW.
The group is now looking for someone to step in. Cole said it needs between $4 million and $6 million to close the deal.
"If I didn't do this, and it failed, just because we needed one person that was sitting out there that didn't hear this, that would be horrible," Cole said. "That is the elite piece of real estate in Bangor. It's kind of a no-brainer. When you look at this top to bottom, when you see what we have and you see the numbers that we have, we have to do this."
The plan
In April, Cole said the group had signed an agreement to buy the mall from Namdar Realty Group, WMTW reported. At the time, the mall was estimated to be about 30% occupied.
The vision, called Bangor Marketplace & Residences, called for tens of millions of dollars in investment. It included:
- More than 200 condominiums
- Assisted living space
- Medical offices
- Outlet-style retail
The city rezoned the mall's commercial area several years ago to allow housing, which opened the door for a redevelopment like this one.
Cole said the group's plans haven't changed, though he noted that development priorities have shifted.
Malls are becoming neighborhoods
Across the country, owners and cities are looking at half-empty malls as places to add housing. Mall sites usually have big parcels, existing roads, utilities and parking, and they're often near highways and shopping. Rezoning for housing, like Bangor did, is often the first step.
But these projects are expensive and complicated. Buying the property is only the beginning. Converting or demolishing old retail space, building new housing, and adding medical and retail tenants take years and a lot of financing. Losing a key investor before the purchase even closes shows how fragile these deals can be.
What's next
No deadline for closing was reported. The group is looking for a new investor to cover the $4 million to $6 million gap. If it finds one, the purchase could still go through. If not, the mall's future is uncertain.
Why it matters for contractors
A redevelopment with more than 200 condos, assisted living, medical offices and retail would be one of the biggest construction projects in the Bangor area. It would mean work for demolition and renovation crews, site and utility contractors, home builders, and commercial trades for years.
For now, that work is on hold. The project can't start until the purchase closes, and the purchase can't close without new money.
Contractors in the region should watch this one, but not count on it yet. Mixed-use redevelopments like this often go through several rounds of investors and plans before a shovel hits the ground. When the financing comes together, the first work is often early site studies, demolition planning and design, which can give local firms a chance to get involved before the larger construction contracts are bid.
The city's earlier rezoning remains in place. Even if this group can't close, that zoning could make the mall site attractive to another buyer with a housing plan.