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| 7/21/2010 |
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Source: The Missoulian
Author: Keila Szpaller
Title: Cooney among group selling 900 acres through 'largest online land auction in Montana's history'
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In a sale described as "the largest online land auction in Montana's history," a group of landowners is unloading some 900 acres for at least 70 percent less than previous asking prices, according to LFC Group of Companies.
Based in California, LFC is the online auction house taking bids on 30 properties from Missoula to Huson to St. Regis. The company estimates the entire package is worth nearly $17 million, but a spokesman also notes one reason for the auction is property values aren't easy to appraise in the current market.
The deadline to bid is July 29, and the website is www.lfc.com/907R3.
Among the properties on the auction block are significant landholdings of Missoula developer Scott Cooney. Duncan Meadows in Missoula and Huson Heights are among the undeveloped properties noted both on the online auction site and on the website of Cooney Developments, www.scottcooney.com.
Cooney, whose attempt to buy the Bonner lumber mill site fell apart last summer, would not discuss whether he was off-loading land to better position himself to make another offer on the 170 Stimson acres, saying he was bound by a confidentiality agreement.
Realtor Al Dunlap, who is working with Cooney on the auction, said the purchase of the Bonner mill site has been "kind of a moving target," but he said he was not at liberty to disclose whether another buy-sell agreement was in the works. He also said the auction wasn't connected to any deals at the Stimson site.
"We've been on and off with the Stimson project, but they are not related," Dunlap said.
A couple of the sites up for sale border Missoula open spaces, but it doesn't seem likely those parcels will fall into public ownership.
Open space program manager Jackie Corday said the prices remain out of reach for any public purchase. The minimum bid for Duncan Meadows, in the Rattlesnake Valley, is noted on the auctioneer website as $999,000.
"That's in the price range where we can't even touch it," Corday said. "It's beyond our range."
That property is some 65.46 acres and was once planned for development. Hikers heading for city open space lands have taken a shortcut across the property, and Corday said she began getting phone calls when a "no trespassing" sign went up earlier this year.
She said the signs serve to educate people about what is and isn't public land. If a buyer wants to develop Duncan Meadows, Corday said she hopes the new property owner agrees to keep an open space buffer around the homes.
"All we can do is wait to see who buys it," Corday said.
Property in Grant Creek borders open space as well, but Corday said that land also is too expensive for open space funds. Big Rock in Grant Creek East calls for a minimum bid of $499,000 on 176 acres - or more than $6,500 an acre.
Corday said most of the parcels bought with open space money cost from $500 to $1,500 an acre. Even the conservation easements purchased in the South Hills ran in that range since the landowners donated much of the value.
"That just helps us stretch the open space bond money so much more," Corday said.
Dunlap, with Regent Realty, said nearly a dozen sellers have property in this auction. He said he didn't know if any would be selling at a loss, but he described the landowners as "all motivated sellers."
Dunlap said the auction is a way to match up those sellers with equally ambitious buyers.
"It is taking a serious seller who really wants to get something sold and giving a serious buyer who wants the best deal that they can get for their dollar - and getting them together," Dunlap said.
The largest property is Royal Elk Meadows, some 271 acres along the Alberton Gorge at Fish Creek. LFC values the land at $3.2 million, and the minimum bid is listed as $750,000.
That so much land is being sold at such deep discounts - if not at losses - is evidence at least one segment of the real estate market has yet to stabilize, said Patrick Barkey, director of the University of Montana Bureau of Business and Economic Research.
"It certainly means there's a lot of softness in the market," Barkey said.
The auction could reflect a few different factors, Barkey said. Among them, that any new homes must compete with existing homes; that other developable properties may be further along the permitting process, which makes "virgin properties" less desirable; and that migration patterns have temporarily slowed because of the recession, so fewer people are moving from out of state to places such as Missoula and Bozeman.
Ryan Devin, with LFC, said the point of the auction is to stir up interest during a challenging market when even appraisals don't mean a whole lot.
"No one knows what the true market value of a property is," Devin said.
He said some auctions don't work out, but most are successful, in part because the sale creates a sense of urgency. For this particular auction, Devin has fielded calls from people who have always wanted to live in Montana to people who live near the properties and have seen the land for years.
He said sealed bids go straight to an escrow company. Dunlap said the bids are open on July 29 and will go into a last-call phase. If bids don't reach a reserve amount, which varies, sellers can pull out of the deal. |
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