Friday, September 7, 2012

Mid-valley subdivision pulled out of bankruptcy

Developer Jack Bariteau brings Village Green back to market

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By TONY EVANS
Express Staff Writer

Developer Jack Bariteau has successfully revived a failed subdivision development in the center of the Valley Club, north of Hailey. Photo by David N. Seelig

A luxury, 43-lot subdivision in the Valley Club north of Hailey, which was seized by lenders during the real estate crash, has been revived by Wood River Valley developer Jack Bariteau.

Bariteau has plans to scale back home sizes on the 37 remaining undeveloped lots in the subdivision.

“It was a failed subdivision in the classic sense,” said Bariteau, who now owns the subdivision along with a group of private investors. “The original plan for the development was for smaller homes, but when the economy worsened, the developer chose to build bigger. He tried to build his way out of it.”

Now known as Streamside Associates, the development group is backed by a land loan from D.L Evans Bank, Bariteau said. 

Improved lots in the subdivision are now on the market for between $145,000 and $285,000. 

Bariteau said he plans to build 2,500- to 2,600-square-foot bungalow-style homes, about half the size of the 13 homes built there during the peak of the real estate boom.

The original Village Green subdivision developer, Harry Dean, filed for bankruptcy in May 2008 to keep his lender, California National Bank, from foreclosing on the development. At that time the subdivision was partly built out with 13 spec homes ranging in price from $2.3 million to $2.9 million.

Six of those homes sold. The remaining seven homes were seized by lenders. 

Bariteau said the first of the bank-owned homes sold in July 2010 for $1.4 million. Today, there are three bank-owned houses remaining for sale in the subdivision, he said.

Bariteau, who has completed several successful developments in the Wood River Valley, said California National Bank of San Diego was eventually seized by the Federal Deposit Insurance Corp. following the real estate bust. 

Bariteau said he was contacted by U.S. Bank, which had taken on 20 percent of the original assets and liabilities of the failed subdivision in partnership with the FDIC.

“U.S. Bank brought me in to buy the asset and work out homeowner association issues, encroachment issues and to finalize water licensing issues,” he said.

After 22 months spent working out the details of the purchase, Bariteau bought the undeveloped portion of the subdivision on July 30. 

He said three lots in the Streamside Associates subdivision have been sold so far.

“We hope to start some landscaping out there late this summer,” he said.

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Tony Evans: tevans@mtexpress.com

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