Washington County condos buck trend

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CUTLER – After two years, Washington County’s only condominium complex has proved to be a success, according to a representative of the developers.

When the former Cutler Naval Telecommunication and Computer Center was bought by Cutler Residential Development LLC and refurbished into Beachwood Bay Estates in 2006, organizers were optimistic about its potential.

Since then “sales have been constantly increasing,” said Julie Galvin, a broker for Prudential Prime Properties who sells the condos.

The refurbishment turned the military base’s housing facilities into 62 customizable townhouse condominiums.

Thirty-six condos have been sold in the past two years and Galvin expects that number to continue to rise.

“We only have three oceanfronts left, and those will probably be gone in the next month and a half,” she said.

The condos start at $109,900 for a two-bedroom unit and go up to as much as $269,900 for an oceanfront unit, according to Galvin.

An oceanfront model cost only $189,000 when the condos first went up for sale in 2006, Galvin said.

This 42 percent price increase contrasts with current real estate trends.

Beachwood “may be one of the only areas that are seeing sales prices appreciate,” Galvin said in an e-mail.

According to Jason Smith, president of the Downeast Multiple Listing Service, real estate prices in Washington County dropped approximately 9 percent from April 2007 to May 2008.

“It’s not a major downward trend,” he said. “If you look at other areas where prices have dropped 20 or 30 percent, it is really not that bad.”

Some Realtors aren’t surprised at the success of the condos.

“They are the perfect situation for a lot of people,” said Sharon Dexter of Machias Bay Realty, who has sold some of the units. “There is a lot that is desirable in a condominium for people who want to stay in Maine just for the summer.”

The numbers agree.

Of the 36 sold residences, only five were to Maine residents. The rest were to vacationers.

“A lot of people are looking for affordable waterfront property, whether it be lake or ocean,” said Smith, who pointed out that prices for oceanfront property in Maine are much cheaper than in other areas of the country, such as New York and California.

According to Galvin, Beachwood owners are from all over the country.

“We have people from California, New Mexico, Utah, Massachusetts and many other states,” she said.

The ability to leave a condo and still have maintenance crews and employees around during the winter is a big perk for summer vacationers, according to Dexter.

Dexter also thinks the condo costs are out of many Mainers’ price range.

“A lot of the homes in this area are not affordable to local people,” she said. “We are poor in this county, and rising costs of living aren’t helping.”

However, Galvin says local interest is rising.

“With gas prices so high people are looking to stay more local” for vacations, said Galvin. “We’ve had a rise in interest from people in the Bangor area lately.

“I can’t think of any place that offers an oceanfront town house for such a low cost,” she added. “The nearest I can think of is Chandler’s Wharf in Portland, but they go for about $750,000.”

The 31-acre site sold for $1.5 million and features trails, two private beaches and tennis courts for residents’ use.

“I think since this [condominium complex] has been built, you will probably see more being built after the market levels out,” Smith concluded.

mdabrieo@bangordailynews.net

664-0524