HAMPSTEAD — A gas station and plaza on Route 111 is going up for auction tomorrow.
The property was completed in 2009 and has nine tenants in 10 units.
The Hampstead Village Station at 416 Emerson Ave. is home to an Xtramart store and gas station, Honey Dew Donuts, a New Hampshire Liquor & Wine Outlet, four restaurants, and a salon and day spa.
It goes to auction Thursday, after entering foreclosure in March, according to Robert Lavoie, an attorney representing Brademer LLC, a Wilmington-based bank that holds the mortgage note and is foreclosing on the property.
“That note has been underperforming, and the plaza hasn’t been able to meet its loan covenants for quite a while,” Lavoie said. “The auction is, really, the only way to have the finances associated with the plaza restructured.”
With $3.1 million in principal on the foreclosure, the property was recently assessed at $3.14 million, according to town assessing records. The land, 2 acres, is valued at $1.4 million; the two buildings are assessed at $1.7 million.
Real estate auctioneer Paul McInnis will conduct the auction. The owners of the property, Hampton-based Richstead Realty, couldn’t be reached for comment.
Two things could happen as a result of the auction, Lavoie said. The entire site could go under a new owner or Brademer could take the property over and work to make it financially stronger.
Going through foreclosure could create a problem for most of the site’s tenants, which Lavoie said are currently subordinate to the mortgage being foreclosed.
“The very essence of a mortgage foreclosure is to ‘close’ out, remove and eliminate any claims and liens,” Lavoie said. “This process gives the property a fresh start, unburdened by things subordinate to the mortgage. So, strictly speaking, those leases which are subordinate could be eliminated by the foreclosure.”
The only lease not subordinated at the site is one belonging to Connecticut-based Drake Petroleum, which owns the Xtramart and sub-tenant Honey Dew Donuts, according to Lavoie.