Buyers get building lots at bargain prices

COEUR d'ALENE - Dirt truly was cheap for those with ready cash at an auction of building lots and one commercial building on Friday.

"How can you go wrong?" said Greg Gervais, who bought one of the 18 parcels of bank-owned land at the auction at The Coeur d'Alene Resort, a five-acre residential lot on Upper Rocky Road in Sagle, for $15,000. All were offered with no reserve price.

Lots ranged from building sites at Gozzer Ranch and The Idaho Club at Sandpoint to a half-acre lot in Bear Creek Estates in Hayden and four 10-acre adjacent parcels near Ramsey and Brunner roads, and 10 acres with 200 feet of frontage at Smith Lake near Bonners Ferry that sold for $63,000.

Paul Bielec, a commercial agent at Coldwell Banker Schneidmiller, bought one Gozzer Ranch lot for $63,000, while another sold for $131,000.

"It was too hard to turn down, even in a market like this," he said.

A 5 percent buyer's fee was added to all sale prices. Bielec also bought the former Wagner's Hofbrau on Kathleen Avenue for $525,000, an investment like the Gozzer lot.

"That is a terrific value for a very clean building," he said. "It is a total turnkey, with all the equipment. It is just a matter of somebody putting their insignia on it."

The purchase price means he will be able to lease the property for a price that will make it possible for an operator to run a high-value restaurant, he said.

"I could lease it out as warehouse at that price," Bielec said.

Dave Knoll, owner of Black Sheep and Timberline Trading Company, bought the 40 acres of treed property in Athol, near where he lives, at $30,000 for each of the 10 acres near Silverwood.

"I didn't plan on buying anything," he said. "The auctioneer got me excited. It's a bunch of trees in the middle of nowhere."

The auction was the second held by Corbett Bottles Real Estate Auctions from Meridian. One was held in March, and another is planned for July.

"Investors like the venue," said Mark Bottles, partner in the business. "They don't like to deal with banks with foreclosures because they worry some liens may not be settled."

Kent Corbett, Bottles' partner, said there are plenty of investors with cash in hand looking to snap up real estate bargains. The sale on Friday only lasted an hour and a half, as close to 300 bidders turned up to see what they could find.

Mountain West Bank was among those with property on the block on Friday, said Katie Marcus, residential loan sales manager for the bank. She agreed the prices were a little scary, but most of the area banks had pieces in the sale.

"Lenders need to move their toxic assets," she said. "At least they sold."