Banking & Finance  May 7, 2010

FNB takes Boyd Lake Village back in foreclosure

LOVELAND – The future of a planned medical campus on East Eisenhower Boulevard in Loveland is cloudy after Boyd Lake Village was sold at foreclosure auction in early April.

But the local representative of a Florida-based group of investors who formerly owned the property says he still thinks it will eventually thrive under new ownership.

“It’s a very good project and set up to do very well,´ said Kirk Dando, a Loveland-based real estate developer. “I believe the next person to get this will do very well with it.”

Boyd Lake Village got its start in 2007 when Dando purchased 42 acres just south of Boyd Lake along busy Eisenhower Boulevard. The first land buyer was Orthopaedic Center of the Rockies, which bought a 7.7-acre site on the development’s west end later that year.

Now called Orthopaedic and Spine Center of the Rockies, the center broke ground in January 2009 and opened in December.

But that early success came just before the financial meltdown and a downturn in the national economy. Even with infrastructure in and lots ready to build, property sales at Boyd Lake Village stalled.

By fall of 2009, the foreclosure process had begun. On April 7, First National Bank, the original lender, bid $5 million for the property, leaving a deficiency of about $4 million still owed on the loan.

Boyd Lake Village Investors LLC included R. Michael O’Malley, M. Shane O’Malley, and Thomas L. Troeger, according to property records. Jerry L. Petersen and J. Trent Byrd are listed as members of Boyd Lake Village Development LLC.

Their local representative, Dando, declined to comment on the ownership group, and The Business Report was unable to contact them for this story.

Will be sold

Larry Wood, executive vice president of First National Bank, said he could say little about the matter except that the bank will attempt to sell the property to satisfy the loan. “We did bid $5 million and we’re the owners now,” he said. “We are required by our regulators to market the property from the time we own it, so we’ll try to sell it.”

Wood said May 3 that the bank was still awaiting a clear title and could not actively market the property until then. But he did acknowledge that there has been interest in it.

“There have been people who have called and asked when it will go on the market,” he said. “Some are buyers, others are just curious.”

Wood said the bank has not had any contact from the original investor group. “We really haven’t had any communication to that effect,” he said.

Wood could not comment on how the $4 million loan deficiency would be handled but said the bank has “not written it off.”

For the last four years, Boyd Lake Village has been marketed by Realtec. Commercial broker Jason Ells said additional marketing is in “a holding pattern” until the bank is in full possession of the property.

Ells said he’s heard of interested parties. “The bank has been approached by a couple of developers or investors to buy the property,” he said. “They are in discussions with those groups, and I think they’re going to work with the (potential) buyers to sell the land in bulk and not parcel it out.”

Original intent

URC’s Engel said the parcel the clinic bought and plans to build upon is well situated. “It’s a great physical location with high visibility on Highway 34 (Eisenhower Boulevard),” he said.

Meanwhile, Mike Burgerson, CEO of Orthopaedic and Spine Center of the Rockies, said he hopes the original intent of Boyd Lake Village will still come to pass.

“Our understanding was it would be a mix of medical and residential and we hope that still comes together,” he said. “We’re hoping that, ultimately, the spirit of Boyd Lake Village won’t change and that it’ll just be under new ownership, although at this time we don’t have any idea who that will be.”

Burgerson said the Boyd Lake Village foreclosure had “no effect at all” on OSCR and he holds no ill feelings toward former developer Dando.

“Kirk Dando is a top-notch guy,” he said. “He’s been nothing but stellar and delivered what he said he would deliver.”

Realtec’s Ells said he expects Boyd Lake Village will build out according to its original plan. “I think it will be a mix of medical and multi-family housing on the east side,” he said.

Ells said the property’s location – almost exactly halfway between Banner Health-owned McKee Medical Center on the west and Poudre Valley Health System-owned Medical Center of the Rockies on the east – makes it perfect for medical groups and practices not wanting to appear to be too closely aligned with either system.

“Doctors can locate there and work with both hospitals, so it’s kind of a medical Switzerland,” he said.

LOVELAND – The future of a planned medical campus on East Eisenhower Boulevard in Loveland is cloudy after Boyd Lake Village was sold at foreclosure auction in early April.

But the local representative of a Florida-based group of investors who formerly owned the property says he still thinks it will eventually thrive under new ownership.

“It’s a very good project and set up to do very well,´ said Kirk Dando, a Loveland-based real estate developer. “I believe the next person to get this will do very well with it.”

Boyd Lake Village got its start in 2007 when Dando purchased 42 acres…

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