High net worth buyers showing interest in Cape commercial property? Two Mid-Cape sales.

The recent sale of commercial properties in Barnstable and Yarmouth may point to a trend.

That trend is both the recognition of bargain properties on Cape Cod by high net worth buyers, and the experience of increased taxes and overregulation by Cape property owners.

“There is a strong market for specific properties among the high net worth buyers,” said Chuck Carey, who owns Carey Commercial in Hyannis.

A lot of businesses are being sold because of increases in taxation and overregulation, Carey said. “It’s harder to do business on Cape Cod than it used to be.”

The sale of Windmill Plaza at 3821 Falmouth Road (Route 28) in Centerville and properties on Ansel Hallet Road in West Yarmouth are examples, Carey said. His company sold both within the last eight weeks. The sales totaled $11.45 million.

Windmill Plaza

Grove Street Realty Trust spent $4.15 million on Windmill Plaza on May 24. The property has 20 commercial units and five residential units on 2.14 acres. The mixed-use property with 22,719 square feet of building space and 99 parking spaces was built in 1985. It is assessed at $4,506,800, according to town records.

Grove Street Realty Trust, based out of Hubbardston, with trustees James D. and Sandra Welch, purchased the property after significant delays. Due to land court recording errors, the sale and closing was delayed for nearly a year as the attorneys processed the title imperfections in accordance with the Land Court, James Welch wrote in an email.

"The process was certainly lengthy, however, our love for the property provided us the ability to endure the long process," he said.

The new owners are turning unoccupied second-floor office units into apartments, Welch said.

The property sellers are Stuart and Aaron Bornstein with Windmill Square LLC, based out of Hyannis.

“Let’s face it,” Stuart Bornstein said. “We’re an hour away from Boston, an hour from Rhode Island, and we got two major airlines coming in. There’s a lot of people who recognize properties on Cape Cod are underpriced compared to other waterfront properties. People are recognizing it.”

In West Yarmouth

Ansel & Gretel LLC bought the six parcels of commercial land and buildings combined in West Yarmouth in two separate deals.  The package of properties on Ansel Hallet Road and Higgins Crowell Road went for $7.3 million on May 21.

Ansel & Gretel LLC, based out of Hyannis, lists Caroline and Molly MacGregor as managers. J. Bruce MacGregor, who owns many properties on the Cape, was listed as a manager on the original certificate of organization but was taken off a week later in an amended filing.

Three parcels of land and buildings on Ansel Hallet Road and one vacant lot on Higgins Crowell were purchased for $4,575,000.

Two parcels of land and buildings at 130, 134 and 150 Ansel Hallet Road were purchased for $2,725,000.

Federal Express, medical offices, Cape Cod Dermatology and a vacant lot with the possibility of development were included in the sales to Ansel & Gretel, LLC. That kind of “critical mass” with long-term leases and tenants like Federal Express and medical offices appeals to high end buyers, Carey said.

• 60 Ansel Hallet Road assessed at $1,593,300
• 88 Ansel Hallet Road assessed at $986,100
• 130 & 134 Ansel Hallet Road assessed at $1,361,500
• 150 Ansel Hallet Road assessed at $954,900
• 661 Higgins Crowell Road assessed at $589,700

The property seller in the West Yarmouth deal was Donald Henderson with Willow Street Realty Trust, and 150 Ansel Hallet Road LLC, both based out of Yarmouth.

Carey blames “obstructionist regulations” and zoning that make it hard for the mom-and-pop operators to continue running their businesses or to purchase buildings. More affluent individuals are coming to the Cape and turning it into a “junior level Nantucket,” Carey said.

“I’d say there are a lot of businesses being sold because of increases in taxation and overregulation,” he said. “It’s harder to do business on Cape Cod than it used to be.”

The Cape Cod Times works out of offices owned by Main Street Times, LLC, with Aaron Bornstein listed as manager.

Denise Coffey writes about business, tourism and issues impacting the Cape’s residents and visitors. Contact her at dcoffey@capecodonline.com .

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This article originally appeared on Cape Cod Times: High net worth buyers showing interest in Cape commercial property? Two Mid-Cape sales.