Savings Bank of Maine acquires Vassalboro complex in auction

Posted Feb. 02, 2011, at 5:20 a.m.

VASSALBORO, Maine — Savings Bank of Maine now owns the Arrowhead Ridge condominium complex beside the Natanis Golf Course.

Among five interested buyers, the bank emerged as the highest bidder by purchasing the complex for $1 million at a public auction on Friday, said Stefan Keenan, an auctioneer and real estate manager with Keenan Auction Company of South Portland, which is handling the sale.

“Other offers were in the $650,000 range,” Keenan said Monday. “The bank is now the owner, and I’m not certain what they’ll be doing with the project. I suspect they’ll re-market it and sell it.”

A bank representative couldn’t be reached for comment late Monday.

The three-story complex was sold at a public auction because its original developer, China Lake Association LLC, of South China, couldn’t afford the mortgage payments.

The 12-unit complex was built in 2006 and has development approval for another 24 units. The condos are beside the Natanis Golf Course, which has two separate 18-hole regulation courses, Arrowhead and Tomahawk.

Association owner Mark Paine was unable to make mortgage payments on the project, and Savings Bank of Maine said Paine’s association breached two mortgages and loan agreements, in 2006 and 2007.

In 2006, Paine said the first 12 units would sell from $199,000 to $239,000, which he said was below the average of $300,000 for a golf course-side condo.

Last June, the Vassalboro Board of Selectmen voted to deny Paine’s request to write off interest and lien costs on his unpaid taxes. According to records at the Vassalboro Town Office, Paine’s association owed the town more than $46,000 in unpaid property taxes as of Dec. 20, 2010.

Keenan blamed the property’s fortunes on a downtrodden housing market during the Great Recession.

Under the auction sale, Savings Bank of Maine also acquires a farmhouse and about 44 acres, plus development rights to the property.

Copyright (c) 2011, Morning Sentinel, Waterville, Maine

Distributed by McClatchy-Tribune Information Services.

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