AUGUSTA – The sale of a historic arsenal that dates back to Maine’s early years as a state is moving forward.

Niemann Capital LLC of Durham, N.C., has signed an option to purchase the 30-acre Kennebec Arsenal complex in Augusta. The agreement calls for Niemann Capital to close the deal by March 26, officials said.

Niemann Capital specializes in restoring historic properties for commercial reuse. Its plans for the Kennebec Arsenal call for transforming the 19th century riverfront buildings into a retail and residential complex.

State Bureau of General Services Director Chip Gavin, who is overseeing the sale, said he sees no major obstacles.

“All the parties are working together in good faith,” Gavin said. “The city is working very hard. The developer is working very hard. The state is working very hard, and the governor and Legislature have been working to make this happen.”

The Kennebec Arsenal was first authorized by a bill signed by President John Quincy Adams just 10 days after Augusta was declared Maine’s capital in 1827.

It served as a storehouse for arms and munitions for the U.S. military until 1905, when the federal government turned the property over to the state.

Niemann Capital already agreed in November on a $750,000 purchase price. The company must provide proof of financing Feb. 26 and must provide the first installment of $280,000 at closing, Gavin said.

The second payment of $470,000 comes due if the developer obtains permits for a planned $10 million second phase of the project, which calls for construction of new buildings on a hill behind the arsenal.

“We’re still in discussions with the developer and a number of documents need to be signed before the closing,” Gavin said. “But there’s no issue we’re aware of that would stand in the way of a successful closing.”