87 State Street Montpelier, VT

Avison Young and Carpenter/Robbins Commercial Real Estate, Inc., as exclusive marketing agents, are pleased to present for sale the Former Montpelier Federal Office Building, a ±70,000 SF institutional-scale asset situated on a ±1.6-acre site in the heart of Vermont’s state capital. Offered by the U.S. General Services Administration via online public auction, 87 State Street represents a rare opportunity to acquire an iconic civic asset in a market where land of this scale, at this address, simply does not come available.

Originally constructed in 1964 as a combined Federal Building, U.S. Post Office, and U.S. Courthouse, the property served as a cornerstone of Montpelier’s governmental fabric for nearly six decades. The building pairs an institutional presence and protected historic facade with a remarkably flexible interior, 22-foot first-floor ceiling heights, an open column grid throughout all three floors, 8 rear loading dock bays, and 10.5-foot ceiling heights on the upper levels, creating a canvas for event, hospitality, creative office, residential conversion, or mixed-use programming that no new construction in this market can replicate.

The asset enters the market following significant capital investments by GSA to restore major building systems after the July 2023 Winooski River flood. Boilers, chillers, the building automation system, electric panels, and sprinklers have all been repaired or replaced. Environmental documentation is comprehensive and available for buyer review, converting what many buyers assume to be unknowns into underwritten, quantified conditions.

The property’s contributing resource status within the Montpelier Historic District is not a constraint, it is a lever. Interior modifications are unrestricted. Exterior changes require local Historic Preservation Commission review, a standard process for rehabilitation projects of this type. Critically, the designation positions the asset as a strong candidate for the Federal Historic Tax Credit, providing a 20% credit on qualified rehabilitation expenditures, a meaningful offset for any buyer pursuing an adaptive reuse strategy.

Downtown Montpelier is a parking-constrained market. The ±1.6-acre site, featuring on-site surface parking and dual frontage along both State Street and Elm Street, is among the most strategically positioned and difficult-to-replicate land positions in the city. Less than a quarter mile from the Vermont State Capitol, the property anchors the intersection of Montpelier’s civic and commercial core with a scale and address that will not come to market again.

Support from Foundation for a Resilient Montpelier

Montpelier stakeholders have shared information outlining community priorities and prior redevelopment planning efforts related to 87 State Street, including flood resilience, housing access, and downtown vitality. These materials are provided as context for anyone interested in learning more and are intended to support independent exploration of the opportunity. Prospective bidders and interested parties should conduct their own due diligence and determine their own approach to the property.