🔒Second housing development for downtown Freeport breaks ground

Depot Terraces will bring much-needed, affordably priced housing to Freeport’s downtown — 45 condominiums aimed at meeting the needs of middle-income households. The project is the second condominium built by the Domus group, a collaboration between Hebert Construction, developer Jack Soley and Avesta Housing. It's designed to create homeownership opportunities for people who have been priced out of the market. The same team broke ground last fall on Clover Terraces in downtown Westbrook, with a nearly identical design, and the goal is to replicate the project in other communities.

By keeping project details consistent and the units compact, Domus Dwellings aims to keep construction costs low enough so that middle-income earners can purchase their first home. “Entry-level housing is an essential component of any healthy, diverse community,” said Avesta Housing President and CEO Jennifer Hawkins. "But Maine faces a critical shortage that is making it increasingly difficult for first-time homebuyers and current homeowners looking to relocate for career opportunities.” Depot Terraces will be built on a three-quarter-acre parcel — a surface parking lot — next to Freeport Community Services and the Amtrak Downeaster train depot. The project will also be across the street from another housing development that's underway. The Dash will be a 51-unit market-rate apartment building from M&R Holdings, the team behind Scarborough’s Downs community.

Downtown density

The dual groundbreakings reflect a goal by Freeport’s transit-oriented development initiative, adopted by the Town Council in late 2024, which calls for concentrating housing and mixed-use development along or near the U.S. Route 1 corridor, which goes through downtown. The plan is to grow the downtown residential population from approximately 300 to 1,500 residents, and it builds on more than a decade of community planning. The one- and two-bedroom condominiums at Depot Terraces are energy efficient and compact, most sized at close to 500 square feet and priced between $300,000 and $350,000. The slightly larger units on the fourth floor will be priced in the mid-$400,000 range.

“The teacher, the carpenter, the nurse — all these people who provide essential services to our society — can no longer afford to live where they work,” said Jack Soley, a longtime developer of residential and commercial projects and a partner in Domus.

“This is a difficult time for both developers and home buyers," Solely added. “Inflation has dramatically impacted the cost of construction and high interest rates have pushed prices to historic highs. At the same time, subsidies that helped make homes more affordable are disappearing." Soley said the Freeport project will not receive any municipal, state, or federal subsidies. “Our secret is to subsidize our projects from within," he said. "Of the 45 units that we are building on this site, 34 will be priced at around 100% of the area median income, squarely targeting the local workforce. The remaining 11 units will be market rate, which will provide the profits necessary to receive bank financing and make this project viable, thus subsidizing the other 34 units.” Solely added that the team is partnering with Kennebec Savings Bank to offer first-time home buyers discounts on closing costs and 30-year borrowing rates as low as 4.875%. “Ultimately, our goal is to create a new model inspiring other developers to consider building workforce housing,” Solely said. "By proving that we can successfully finance, build and market these units, we hope to show a viable path forward without subsidies.” Other partners in this project include two Portland-based firms, Kaplan Thompson Architects and Acorn Engineering.