Mesa National Bank buys Terraces
Post Independent Staff
GLENWOOD SPRINGS – Twenty-four Riverview Terraces units owned by the company that developed them were sold back to the bank on Wednesday.
Mesa National Bank, the lending institution that loaned Riverview Terraces LLC more than $4 million to build the Terraces, bought the 24 units still owned by that company for more than $3 million in a foreclosure auction.
The per unit cost was just over $127,000.
The units were sold at a 10 a.m. public auction Wednesday by Garfield County Treasurer Georgia Chamberlain. The auction was held just outside the east entrance of the Garfield County Courthouse.
“Although there were lot of people, nobody bid on it,” Chamberlain said of the troubled condominium development.
Nobody but the bank, that is.
Prior to the auction, however, a special warranty deed was issued on one of the units. The title of Unit 312 was transferred from the Terrace Group to its managing partner, Jay Harkins of Denver, on Aug. 11 for $217,650, Garfield County Clerk and Recorder records show.
The treasurer’s office announced in July that foreclosure proceedings against the property were pending. The foreclosure actions started after Riverview Terraces LLC defaulted on loan payments to Mesa National Bank.
The foreclosure sale is just the latest problem for the condominium complex at 27th Street and Midland Avenue.
Residents complained in August 2002 that building No. 1 showed serious structural damage. Local geotechnical engineering company H.P. Geotech later determined that the damage was caused by a sinking foundation.
The damage included cracks in wall and ceilings, and doors and windows that wouldn’t close. Geological studies of other buildings in the complex have determined that the entire lower tier of buildings – Nos. 1 though 6 – are experiencing some degree of foundation sinkage.
At one point, city officials nearly ordered the evacuation of tenants because of safety concerns. So far, however, no tenants have been ousted.
Chamberlain has said selling the units at a public auction is one way the bank can attempt to recover outstanding debt on the loan, attorney fees and the cost of the sale.
Contact Greg Masse: 945-8515, ext. 511
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