Applications for new apartments in Penobscot set to open Aug. 15

Seven units expected to come on line next month amid Maine’s severe housing shortage

The exterior of the new apartments at Northern Bay Commons. Photo by Jessi Hardy.

July 28, 2026

By Jessi Hardy

PENOBSCOT—The transformation of a former nursing home being turned into apartments in Penobscot is continuing, with the application process for its seven new units set to open on August 15.

The new development, called Northern Bay Commons, located in the center of town on the North Penobscot Road will ultimately be able to house 23 local residents.

The kitchen and living space at a unit at Northern Bay Commons. Photo by Jessi Hardy.

Property owner Skip Eaton, who also runs a Deer Isle-based paving company, and his project manager Jamie MacNair have worked together for the past several years to create the new housing. Maine needs up to 84,000 new units by 2030 to alleviate the state’s housing shortage, according to a state report.

The project in Penobscot is currently in phase one of development, consisting of seven units featuring a mix of one- and two-bedroom apartments with full kitchens and bathrooms. The site will include a coin-free laundry room, internet and, in the future, basketball and pickleball courts, MacNair said. The former nursing home’s north and west wings are currently nearing completion, with four of the seven units already fully completed as of today.

“We tried to reuse a lot of materials from the nursing home, such as some of the trim and all the windows,” MacNair said.

With many people unable to find housing, MacNair said the development and rental structures will ensure predictable costs for tenants. The price will be based on the number of occupants per unit, with monthly rents ranging between $2,000 to $3,200.

Project manager Jamie MacNair stands next to the entrance of Northern Bay Commons, where landscaping and reseeding is also taking place. Photo by Jessi Hardy.

“Everything is electric, and everything is included,” MacNair said.

Units are equipped with heat pumps and private porches, balancing personal space with a sense of community. Landscaping and reseeding has also begun around the project at the former nursing home, which had sat unoccupied for more than a decade.

MacNair said the primary goal of Northern Bay Commons is to provide housing that supports local employee recruitment and retention. Local employers currently struggle to find staff due to the housing market, which in turn causes high turnover, she said.

Phase two of the project, which involves buildings at the corner of the North Penobscot Road and Bayview Road, is still in development and will require approval from the Town of Penobscot. MacNair hopes that phase will include office spaces and additional recreation areas.