WIN building in Basalt sold for $4 million
BASALT – Alpine Bank on Tuesday sold the WIN Institute building in Basalt to an entrepreneur from Oklahoma City, said Scott Bayens, a real estate agent who brokered the deal.
Jon Jiles, the chairman and CEO of Valir Health, purchased the building after negotiating with bank representatives for nearly a year, Bayens said. The sale price was $4 million, according to a deed recorded with the Eagle County Clerk and Recorder’s Office.
“We got a great deal,” Bayens said.
The name of the building will likely change, but Jiles intends to keep renting to medical- and fitness-related tenants, according to Bayens. “I think he’s intrigued by that use,” he said. “We’re fairly confident that’s what we can do.”
The new owner wants to talk to “individuals and organizations in the health care industry with a proven track record of success and long-term sustainability,” Jiles said in a prepared statement. Bayens said they have approached representatives of Aspen Valley Hospital and Aspen Valley Medical Foundation about the possibility of renting space at the building, although nothing is imminent.
Bayens said a nursing home and drug and alcohol treatment center aren’t being considered for the space.
If it isn’t possible to find medical field tenants, Jiles will market space to other professionals, such as attorneys and accountants. Bayens said he and Jiles will meet with the existing tenants and explore possibilities for long-term leases for them. The current tenants include a chiropractor, a fitness club, an acupuncturist and a medical marijuana dispensary. “”Most of our leases are set to expire at the end of the year,” Bayens said.
The sale ends the dream of Dr. Dave Jensen and his wife Dee to operate the WIN Institute in the building. Jensen, a chiropractor, founded the institute with a vision of providing holistic care. He constructed the institute next to the Mid Valley Clinic so patients could blend standard and alternative medical treatments.
Jensen’s Mid Valley Wellness Institute LLC constructed the 33,620-square-foot building in 2007, and WIN opened in 2008, right before the recession hit the Roaring Fork Valley. The WIN building has about 22,000 square feet of commercial and common space and eight residences on the upper floor. The Jensens’ firm defaulted on a construction loan with a principal of $7.16 million, according to documents filed with the Eagle County Public Trustee by Alpine Bank.
The bank was the only bidder in the foreclosure sale on Sept. 9, 2009. A deficiency of about $1 million remained after its bid of $7.6 million, creating a total indebtedness of $8.65 million, according to documents filed with the public trustee. Alpine Bank turned the property over to its affiliated company, Roaring Fork Real Estate Solutions LLC, according to a confirmation deed filed with the Eagle County Clerk and Recorder.
Mid Valley Wellness Institute filed an intent to cure the debt on Aug. 7, 2009, but it was never able to raise the funds. Jensen is traveling and couldn’t be reached at his office Tuesday. His chiropractic office remains an anchor tenant at the WIN building.
Bayens said he became aware that the Jensens were facing financial troubles while he scoured the market for commercial properties for Jiles to consider. “That started discussions about this building as a possibility,” Bayens said. Jiles initially talked to the Jensens about assisting them but no deal could be arranged, Bayens said. Jiles eventually approached Alpine Bank.
“It was not marketed. We took the initiative,” Bayens said.
The bank initially sought $8.1 million for the property, which “made it a tough negotiation,” Bayens said. “In the bank’s defense, they took some time to evaluate the asset.” When they did, they came up with a price Jiles was willing to pay.
“This is a textbook case of a distress sale,” Bayens said.
Alpine Bank has a policy of not discussing the sales of real estate it owns, company officials said earlier this year.
Some high-profile properties have been sold by lenders over the past year for prices below loans that banks made. The banks want to get the troubled assets off their books to improve their balance sheets. Alpine Bank has sold millions of dollars worth of property, both real estate it foreclosed on and property repossessed from lenders who allegedly defaulted on loans.
Bayens said the Aspen-area market is dominated right now by buyers who have capital available and are looking for favorably priced property.
Jiles’ company, Valir Health, was described in a prepared statement as “an entrepreneurial organization with over 500 employees specializing in infrastructure, management support and capital investment in new and existing health care ventures.”
The firm’s interests include inpatient and outpatient medical rehabilitation hospitals and clinics, hospice services, Medicare billing and consulting, and a variety of integrated health and wellness programs. Jiles owns and manages Larchwood Inns, a skilled nursing and post-acute rehab facility in Grand Junction.
Jiles plans to live in the Roaring Fork Valley part-time and manage his new building, with the goal of moving to the valley full-time, his statement said.
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