Montrose, Colorado - A Growing Community

Real Estate brokers and broker associates agree Montrose is definitely where it is happening, both in residential and commercial real estate. Ninah Hunter, savvy real estate investor and broker for Century 21 Action Realty, and a California transplant, has been monitoring Montrose’s growth. “This place was on the verge of exploding four years ago,” she said. “It was a good time to buy real estate. People coming in from California, Denver, all over the nation, really, were discovering and investing in Montrose. With all the sub-prime loans out there, money was easier to come by. It was a ‘flipper’ market, where you could buy, then quickly sell, experiencing an attractive profit.”

Although the market has experienced a slow-down (about 20 percent fewer houses and lots were sold this year than last, in the same period of time), real estate is still a good investment, especially in the under-$300,000 residential market. If you’re ready to buy, especially with interest rates as attractive as they are now, this is a good time to do it, according to Broker Associate Alan Brown (whose wife, Bobbie, heads up the Montrose office of Wells Fargo Home Mortgage). And, (with good credit) you can still get a 30-year, 6 percent fixed rate loan! As more young professionals move into the area, drawn by medical, communications, and other jobs related to the changing and more sophisticated employment base, median wages will rise, and accordingly, the ability to purchase a home in the high $200,000s (today’s median) or above.

“We’re also seeing more young retirees,” said Vicki Jones and Doug Phillips of Re/Max Alpine View, who have been selling real estate here for nearly twenty years. “The area is attractive because of the climate and the variety of year-round outdoor activities it offers, everything from easy hikes to extreme skiing and anything in between.”

“You’ll also see more of both ends of the spectrum looking for a better quality of life, active empty nesters and young families,” noted Tammy Carroll of Premier Properties.“You see it in the composite makeup of homeowners in the new sub-divisions, as well as the changing titles on older homes,” added broker Marge Phelps of Marjorie Phelps Realty. “Add to that improved communications like high-speed internet, and better air service and improved ground transportation, and it’s much easier for people to live here and telecommunicate to work.”

According to Diane Gorrono, United Title, “We’re closing loans on all kinds of properties, and the buyers are all over the map, some from here, some moving in from the Front Range or out of state, all different ages and professions.” Single family homes still dominate the market, but Montrose is also seeing more multiple-family dwellings, more town homes and condos,
more mixed-use developments combining residential and commercial space within the same property.

All sorts of homes are available in the area, from site-built, to systems built, the latter a building style that has not seen any drop in units sold. “A lot of people are more environmentally conscious today, and a systems built home meets their needs,” according to K.C. Heister, KopperCreek Building. “Homes are built off site, in a controlled environment. We earn ENERGY STAR ratings.”

It’s also interesting to note that where Telluride and Ouray were not-so-long-ago considered the prime real estate market, Montrose is rapidly catching up, and even surpassing them. Like Ninah Hunter said, “Montrose is definitely where it’s happening!”

MONEY
What’s funding residential growth? Traditional mortgages, equity loans, alternative credit, and cash from sale of former homes are all available to potential home-owners. Many banks have mortgage companies which can package a number of loans to sell to investors in a secondary maketplace. “The mortgage business has a life of its own,” according to Greg Majors, president of Wells Fargo Bank, Montrose. “By packaging, we insure sufficient funds for mortgages.” Technology has impacted local banks, with over half of customers using the internet to move their money from account to account, and to pay bills online. Yet customer service still draws people to brick-built banks. “Wells Fargo is the fifth largest bank in the country, but we value hometown banking, and make a commitment to community,” Majors said.

“We find the bankers and then build the bank,” said Randy Havens, president of Timberline Bank, which opened in July 2006. “We’re a small community bank which specializes in customer service. Sixty-five percent of the bank is owned by our employees.” Havens said Montrose’s growth gave Timberline the opportunity “for our style of banking.” The mortgage
department fills the need for prospective homeowners to get the loans to buy their starter homes. Timberline Banks can also be found in Aspen and in Grand Junction.

From a different perspective, “Banks don’t have as much to lend,” according to Dave Roberts, Mortgage Resource. “Banks had to tighten their guidelines to keep investors. Brokers have more variety in the programs they can offer, such as home loans, commercial real estate, and construction loans.” The moral of the story, in Roberts’ opinion, is to diversify with investment portfolios, real estate, and stocks, and to have patience.

Even so, “Real Estate is still a good investment here,” noted Real Estate Broker Associate Alan Brown. Montrose has one of the lowest foreclosure rates in the nation (less than two percent). “We have good jobs, and our values are holding. Now is still a very good time to buy.”

NEW ECONOMY
“Montrose is a regional retail center and financial center, as well,” according to Majors. “It has a vibrant, growing economy, and that creates opportunities for banks. Our population has been growing three to four percent per year over the past ten years.”

Commercial property growth caught residential expansion a couple of years ago. “We saw the influx of people in 2004 and ‘05,” said Sharon Dixon, United Title. “Commercial property has been quite strong since ‘05.”

To satisfy the needs of this growth, retail opportunities exploded. Matt Miles, Leadership Circle LLC, invested time and money to solve a long-standing access issue on property south of town, and Montrose had its first, genuine shopping mall. With the opening of Oxbow Crossing a couple years ago, and River Landing this year, both on the southern edge of Montrose, Class A commercial zones were created. JC Penney’s and Target at River Landing complement The Liquor Store, Applebee’s Restaurant, and Timberline Bank at Oxbow, and give residents of western Colorado a convenient, yet comprehensive, opportunity for goods and services.

Miles explained his decision to build the shopping malls at the south end of town.“ When I was a roofing contractor I found that intrinsic value comes from cash-flowing investments.” He moved from the roof to the land, from trailers to site built subdivisions, and took the leap to commercial property. “I was given the opportunity to participate in south corridor meetings among the land owners, the City, and CDOT (Colorado Department of Highways) where the three opposing views stopped growth for four years.

“Access to the properties was the issue. We spent the time and money to do traffic studies, solved the access problem, and built Oxbow. It was logical to buy the property across the highway and use the same access, so we built River Landing.”

In addition to the two shopping malls, which employ approximately 650 people, other areas of the city built-up, or built-new commercial enterprises, particularly in the medical industry. International industries such as Scott Fly Rod and TEI Rock Drill moved in. National companies like Russell Stover Candies, Ross Reels, and Franklin Medical also came. These were the “primary employers”, meaning their goods and services are sold outside the area. Primary employers bring new wealth into a community, thereby helping grow the local economy. Main Street shops remodeled, and small malls appeared on West Main and North Townsend Avenue.

Service industries, such as restaurants, personal care providers, insurance and legal agents also expanded. All are keeping shoppers in town, growing the city coffers with sales tax collections, while impacting traffic patterns. “Since the City relies heavily on sales tax revenue, the new businesses in town definitely provide a financial boost for the City,” said Montrose City Manager Mary Watt. “While Montrose is thriving in many ways, it is still a challenge to find the financial resources needed to improve the City’s infrastructure, particularly roads.”

What entices people to relocate, in addition to affordable homes, a good wage base and terrific climate, are retail amenities, medical facilities, cultural opportunities, and a solid educational system, from pre-school to college. Quality of life matters. And Montrose has it.

LOOKING FORWARD
During the 1990s and early 2000s, many organizations moved to Montrose. The ambiance of the area, coupled with an available workforce, and a growth-oriented city administration made Montrose appealing to many companies, large and small. This first decade of the new century finds neighborhoods blooming in adobe hills, shopping malls replacing bogs, and cutting-edge industries creating jobs.

The mix of newcomers and old timers creates a healthy climate that fuels growth. With work options due to technology attracting many, and lifestyle choices which entice outdoor enthusiasts, as well as leisure seekers, Montrose thrives. “Quality of life and lower real estate prices than most of Colorado,” said Marge Phelps, “make Montrose prime for growth.” Montrose continues to nurture opportunities and create dreams.

Montrose is definitely where it’s happening.