The Freeport Village Station shopping center, which celebrated a grand opening in May 2009, is scheduled to be auctioned on Wednesday. Derek Davis/Staff Photographer

A shopping center that encompasses a large block in downtown Freeport is going to be auctioned next week as part of a foreclosure.

Freeport Village Station Capital LLC is foreclosing on the developer of the Freeport Village Station, according to records at the Cumberland County Registry of Deeds. Boston-based Berenson Freeport Associates LLC, the borrower, is in breach of the conditions of the mortgage, according to a notice of sale filed on Feb. 5. The shopping center is home to outlet stores of L.L.Bean, Brooks Brothers, Old Navy, Oshkosh and other retailers, and includes a parking garage with hundreds of spaces.

Representatives of Freeport Village Station Capital and Berenson did not respond to emails and phone calls seeking details about the mortgage and foreclosure.

Berenson, which claims to have developed retail projects in 20 states over the last 50 years, says on its website it has focused much of its attention on Freeport.

“Our company was chosen to create another destination shopping experience in the center of Freeport, and the result is Freeport Village Station,” it says. There are no other projects described on the site.

The buildings and land are assessed at about $32.5 million, according to the Freeport assessor’s office.

The prospective auction has drawn “tremendous response” from potential U.S. bidders and others overseas, said auctioneer Mike Carey of Tranzon Auction Properties. The Portland-based company, of which Carey is also a co-CEO, has been marketing the site ahead of the auction.

The Freeport Village Station retail center includes a parking garage with more than 500 spaces and the vacant six-screen Nordica Theatre, indicated by the yellow arrow. Courtesy of Tranzon Auction Site via Zietview

The final sale, he said, will be “clearly a multimillion-dollar purchase.”

Bidders will likely be private equity firms; real estate investment trusts that own or finance income-producing real estate; high-net-worth individuals; and retailers, Carey said.

“Freeport is a desirable retail center and has rebounded from the pandemic,” he said. “In our Maine market, you could definitely consider this a fairly significant sale.”

The town is home to more than 120 stores and specialty shops that, before the COVID-19 pandemic, drew about 37 million visitors annually, according to Tranzon. More recent numbers are not available.

The 3.6-acre Freeport Village Station is advertised as being “well-positioned in Freeport’s downtown district, along Main Street, a key pedestrian and vehicular thoroughfare.” Derek Davis/Staff Photographer

Town Assessor Quang M. Le said the auction is a matter between two private parties and will have no impact on Freeport. Town Supervisor Sophia Wilson said she’s aware the auction has been scheduled but is not familiar with the details. She was appointed in October and added that she’s new at the job.

Foreclosure is typically prompted when a borrower fails to make mortgage payments. Because mortgage loans are secured by real estate – the property serves as collateral for the loan – lenders can repossess the property and sell it to recover their loss.

The 3.6-acre property is advertised by Tranzon as “well-positioned in Freeport’s downtown district, along Main Street, a key pedestrian and vehicular thoroughfare.” The site includes a 122,121-square-foot open-air plaza with a parking garage of more than 500 spaces beneath the main retail area.

Freeport Village Station includes a 122,121-square-foot open-air plaza. The auction is open to the public and will take place at the shopping center on Wednesday at 1 p.m. Derek Davis/Staff Photographer

The L.L.Bean store anchors the center, which Tranzon said is about 73% leased. National retailers account for about 87% of rental revenue, Tranzon said.

The corner once occupied by the Nordica Theatre is one of the spaces that remains vacant. The six-screen cinema closed at the beginning of the pandemic.

Initial bid deposits of $250,000 must be made by bidders, with the successful bidder required to increase the sum by 10% of the purchase price no later than 24 hours after the sale date. Freeport Village Station Capital may bid without making required deposits, modify the terms of the sale and add other terms, according to documents filed with the Registry of Deeds.

Freeport Village Station celebrated a grand opening in May 2009. The retail center was particularly welcomed as the Great Recession worsened.

The auction is open to the public and will take place at the shopping center on Wednesday at 1 p.m.