BRATTLEBORO — After about 11 minutes of bidding, the Outlet Center was sold for $990,000.
Dan Systo of Brattleboro, winning bidder, told the Reformer he was representing a third party at the auction Thursday. He declined to share the name nor plans for the approximately 5.42-acre property and 7,336-square-foot building at 580 Canal St.
Auctioneer Mike Carey, of Tranzon Auction Properties, told the Reformer he thinks 10 bidders registered for the auction. He estimated about five or six had actively participated.
More than 35 attendees were counted inside a vacant room in the Outlet Center where the auction occurred. Bidding began with a $250,000 offer.
Carey paused the auction for a short break when bids hit $950,000 so bidders could make phone calls or consult with other attendees.
"With that amount," he said before taking bids again, "I'm happy to announce that in auction terms, a reserve has been met."
Carey said the bank selling the property would be willing to sign a purchase-and-sale agreement with one of the bidders. He called the news "fantastic" for the town of Brattleboro.
A shorter break was given when bids hit $990,000 so that one bidder could make a phone call. That bidder did not end up putting in a higher offer.
The property is assessed at $1,350,000 and requires annual tax payments of about $37,749, according to documents Tranzon published prior to the sale.
The auction was the result of a foreclosure action brought upon by TD Bank against Marcraft Realty Corp. Judge Michael Kainen signed a judgment and decree of foreclosure in November.
At the time, principal amounts of about $732,130, $39,691 and $24,251 were owed as well as accrued interest of about $65,475; attorney's fees of about $21,860; appraisal costs of $4,911; a title search of $149; and recording fees for filing the complaint of $130.
The mortgage dates back to January 2004, with a second mortgage recorded in 2013 and a third one recorded the following year, according to court documents. The bank said payments on the first and second notes went unpaid and according to the terms, a default on any of the notes is considered a default on all of the notes, causing all the principals to be due right away.
Tranzon said the property began to be developed in 1955. The Outlet Center, also known as the Factory Store, includes 11 retail units — four of which are occupied through leases with Hanes, Jumi Shop, Northeast Mountain Footwear and Carter's Childrenwear — and two public restrooms.
Sources familiar with buying commercial property at auction indicate that typically, new owners want tenants to remain at the property for at least the short term and regularly want them to stay on a long-term basis.
Reach staff writer Chris Mays at firstname.lastname@example.org, at @CMaysBR on Twitter and 802-254-2311, ext. 273.