Friday, March 07, 2014

Elder Care Facility Now Flop House - A Curious Tale

by Osman Parvez
Here's the curious tale of 1795 Quince Street.   I can share this real estate adventure as my client is no longer pursuing the property.    

Once upon a time, 1795 Quince was a regular house on a relatively quiet street in N. Boulder.    It was owned by a real estate agent who listed and sold it for $299,500 back in 1997  (listing sheet). 



The buyer of the five bedroom, three bath home was a non-profit called Anam Chara, which agreed to restrictive covenants in exchange for government subsidies.   The restrictions included a requirement that the property be used only as a care facility for low income elderly patients. 

Fast forward to today.     

The Alleged Crime
After getting into a little trouble with the law, which included alleged abuse of patients and Anam Chara's top administrator being indicted (Daily Camera Article), the property was listed for sale.   The charges against the administrator are two counts of attempting to influence a public servant, two counts of tampering with evidence, one count of negligence causing serious bodily injury to an at-risk person and one misdemeanor count of neglect of an at-risk victim.   Ouch.   


Property Details
The property is now a seven bedroom, three bath house.   The original listing was for $610,000 in August of last year.    It's since been dropped to $450,000 (current listing sheet).   


I took a buyer to see it a couple of weeks ago.   The stoner tenants who opened the door weren't happy to see us when we arrived for our scheduled showing on a Saturday morning.  Apparently they didn't get the message about the appointment.  Luckily they allowed us inside.  

I'm sad to report the property is now best described as a flop house, complete with mattresses on the floor, deferred maintenance, and overflowing trash everywhere. There is also plenty of debris left behind from the property's former use, including medical treatment equipment and office files. 

I'm sure this doesn't make the neighbors very happy. 

Even in its decrepit state, the market value of 1795 Quince without the restrictive covenants is easily north of $700,000.   The asking price of $450,000 seemed like a compelling reason to investigate.    

My client was contemplating ways to use the property as a non-profit serving the community (possibly art therapy), but according to the listing agent, the city is unwilling to compromise. Supposedly several buyers have already attempted to sway the City without success.   Even if the city lifts the covenants (which requires a judge's approval), it appears that nearly $300,000 of grant money would need to be repaid.     At the asking price, that brings it back up to about market value. 

The public record shows the last recorded mortgage for $420,000 in 2005.   It's uncertain how much Anam Chara paid down that mortgage, but I suspect they don't have much further room to drop the price without ending up in short sale territory.  

For now, a flophouse it remains. 

Additional Reading:
Restrictive Covenants - 5 documents (there could be more)

Public Record - which shows a of property transfers between executives at Anam Chara and the organization itself. 


Closure Announcement - Supposedly Not Due to Abuse

Executive Claire Gordon Makes an Appearance

image credits:  Stephanie Carter, Ian Sane, Jamiecat
---
Like this analysis?    Subscribe to my research.       Want to meet me in person?    Attend a Boulder Real Estate Meetup.    Ready to buy or sell?  Call me at 303.746.6896.  

No comments:

Post a Comment