The former Williston-West Church complex at 32 Thomas St. is expected to be sold for $3.5 million. Ben McCanna/Staff Photographer
The historic former Williston-West Church in Portland’s West End is headed for new ownership.
The property – a former church sanctuary and parish hall – has only been partially redeveloped since it was last used as a church more than 10 years ago. Now, it will likely be sold for $3.5 million as the company that controls the property at 32 Thomas St. is dissolving.
The church, built in 1877, was designed in the High Victorian Gothic style by Francis Fassett. The parish house, designed by Portland’s best-known architect, John Calvin Stevens, was added in 1904. The former United Church of Christ was placed on the National Register of Historic Places in 1980.
The Williston-West Church board of trustees sold the property in December 2011 after its congregation had been shrinking for years. Australian businessman Frank Monsour, doing business as 32 Thomas Street LLC, bought the 19,000-square-foot church and attached 11,000-square-foot parish house for $658,000.
Monsour then spent years in a legal battle with West End residents who strongly opposed the city’s decision to rezone the property to allow him to restore the church portion for use as a community hall and convert the parish house into an office building with two or three residential units.
The Maine Supreme Judicial Court ultimately ruled the rezoning was legal and the redevelopment moved forward.
In the decade since, five condos, ranging in size from 1,150 to 2,161 square feet, were completed. Two additional units are incomplete. None of the condos was ever sold and three are currently occupied by renters. Development rights are in place for six additional condos, according to a property listing.
SELLING WILLISTON-WEST
The latest sale is spurred by the closing of Coastal Realty Capital LLC, which provides real estate loans in New England. The company last year asked the Maine Business Court to appoint someone neutral to manage the winding down of its business, citing pandemic-era changes in the market that made it difficult to operate.
Thus began the untangling of a series of limited liability companies that have money tied up in the property.
Coastal Realty Capital owns all of the membership interest in West End LLC, which in turns owns all of the interest in 32 Thomas Street LLC, which owns the property.
The court appointed Jason Mills to oversee the sale of all of Coastal Realty Capital’s assets, including the Williston West Condominiums. The property is valued by the city tax assessor at $3.1 million.
Keenan Auction Company was to conduct an auction Friday, but no offers above the current offer of $3.5 million were received before Monday’s deadline. Mills has recommended the court approve the $3.5 million offer.
The minimum price of $3.5 million was set by what’s called a “stalking horse bid,” an offer from someone willing to buy the property outside the auction. It prevents prospective buyers from forcing a low price at auction and maximizes the value of assets being sold, according to court records.
A judge will now need to approve the sale of the property to the stalking horse bidder, AO & Associates LLC of Portland, said Stefan Keenan of Keenan Auction Company. The next court hearing is scheduled for Sept. 28.
Keenan said he is optimistic the new owner will bring the project to fruition.
“Hopefully this will come together nicely for the community,” he said.
Attempts to reach representatives of AO & Associates LLC and Coastal Realty Capital LLC were unsuccessful.
‘SIGNIFICANT’ EXPENSES
It’s not the first time the property has waded through murky money problems.
In 2019, 32 Thomas Street LLC filed for bankruptcy protection on the day the church was set to be sold in a foreclosure auction, preventing the auction from moving forward. At the time, the luxury condos were being marketed for sale from $650,000 for a two-bedroom unit to $1.15 million for a three-bedroom unit. Later attempts to sell the property were unsuccessful.
According to court records, 32 Thomas Street LLC has not made payments on a $1.4 million mortgage from Coastal Realty Capital since December 2018.
Coastal Realty Capital also owns 20% of a second mortgage on the property. The amount due on the two mortgages was $4.65 million as of March 2023, according to court records.
Mills said in court documents that the sale proceeds will cover the first mortgage in full and “substantially all of the principal” of the second mortgage, but not any other debts. Monsour holds a $300,000 promissory note from 32 Thomas Street LLC, but Mills proposes not paying him because no amount is due on the note as long as the first and second mortgages are unpaid, according to court records.
Mills looked at various other options for the property, including selling the completed condos. He concluded that was not feasible because the construction and economic risk associated with the development of the sanctuary would severely impact the sale price for existing units, he said in an affidavit.
Development will require substantial additional funding, Mills wrote in a court affidavit. He didn’t provide an exact estimate and Mills couldn’t be reached Wednesday to talk about the property. Expenses include renovation and reconstruction of the sanctuary into residential units, bell tower and roof repairs, and the completion of two partially renovated units in the parsonage.
There will also be expenses tied to parking. The property currently has five parking spaces, but more will be required if additional units are added to meet the city’s requirement for one off-street parking space per unit. The parking issues substantially affect the value of the property, Mills said in the affidavit.
Mills estimated that it would take two years or more to complete and sell out the building, requiring “significant” expenses while the project is underway.
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