Photo by Bob Borchard

Local developer Nick Streza

On Dec. 21, 2011, Alpine Bank (Grand Junction) foreclosed on Nick Streza, owner/developer of DeerCreek Properties, LLC.

According to Streza, DeerCreek Properties bought the DeerCreek Development in 2007, via investment monies from investors and a loan from Alpine Bank for the DeerCreek Development on the front nine of the golf course at DeerCreek Village. Streza opined, "In the 1970s, federal policies had created fictitious values for real estate."

Streza said that when Alpine Bank approved the original loan he was told that the bank looked for businesses to loan money to, "where the bank and the borrower had a relationship, much like a business partnership," that they could work together "through the term of the loan."

"By mid-2008, there were 92 lots ready for homes to be built," said Streza.

Streza explained that when the housing market and the economy collapsed, buyers were not to be found. Streza said that in mid-2009, additional investment money was used to pay the bills. "By the end of 2009 it became apparent that money needed to pay Alpine Bank would not be available from lot sales [and that] the investors had reached their risk limit," said Streza.

Streza explained that in 2010 and 2011 he worked independently with potential buyers of multiple developed lots, national builders, individual investors and "groups who had an interest in purchasing the entire subdivision," while remaining in "continual communication with Alpine."

In February 2011, after discussing the foreclosure sale with Streza, Alpine filed for foreclosure — with an agreement to work with Streza. The result was a unique and very different kind of relationship, said Streza. Via that unique agreement, Streza said his wife's (Cindy) real estate office will be the listing agent and sales representative for Alpine Bank. Streza said Cindy feels that there is still a market for homes that are reasonably priced.

For his part, Nick is working with the bank to "make the development work," and, per the agreement with Alpine, will be the bank's representative for the home owners association, the community and potential buyers.

Streza will also maintain the DeerCreek Realty Office at 855 SE Stonebridge. According to Streza, the current market value of the building is less than the cost of building the building." Streza then opined that it will take three years for the real estate market to recover.

"And the business is not for sale either," said Cindy, dispelling some of the rumors going around.

Streza concluded, saying that people need to support their local banks. "Local banks will work with local developers," said Streza, "to help keep developments afloat and to help make them a viable purchase."

Streza is thankful that the development loan did not come from the big national banks. "In a faltering economy local banks do as much as they possibly can to protect the development," said Streza, "and preserve the community."

Giving credit to his working relationship with Alpine Bank, Streza noted that contrary to rumors, he has not filed for bankruptcy and has no plans to do so in the future.

Cindy added that their working relationship with Alpine Bank has been "wonderful." Nick said it's in the best interest for the banks and the developers to work together through these hard times.