Around two years ago I first brought you the story of The Shire, a Hobbit-themed development in Bend, Oregon. But two years ago there was no real estate crisis and now The Shire is facing foreclosure. The Bend Bulletin reports that the notice of default was recorded last week in the Deschutes County Clerk's Office on the 31-lot development. The original developr Ron Meyers sold his share in the development to Dr. Lynn B. McDonald and his wife Jan. They had taken full ownership in May but Dr. McDonald died July 7 and Jan McDonald is trying to sell off the 14 developed lots before the public auction of the six-acre property on December 2. The default notice says the family owes Umpqua Bank $3.4 million on the project.
The project includes stonework, artificial thatched roofs, and a network of gardens and streams with a pathway leading to a central courtyard. It as gotten plenty of media attention but just one home has sold for $650,000 since the project broke ground in fall 2006. Another, the Butterfly Cottage shown above, is listed at $899,000. It overlooks an amphitheater and has modern touches including bamboo flooring, a Japanese soaking tub and granite countertops. There is also a "hobbit hole" in the backyard for storing garden supplies.
The project seems to have gotten plenty of people stopping by to look but not many people buying. It's unclear what will happen to the Tolkeinesque theme of the development when new investors take over.
[via Gawker]
Reader Comments (Page 1 of 1)
8-05-2008 @ 4:21PM
Bend said...
Let's see here. Dr M died, who had just bought the "Shire" on fire sale in May of this year.
What is most interesting is the term 'died', in the last month four prominent developers of Bend, have suspiciously died, and ignored by the local press.
The local press in all four cases, highly praised the developers for buying the 'falling knife' developments, but then have been suspiciously silent on all the deaths, most of which have been rumored suicides involving cliffs or guns.
The whole world praised Bend, Oregon on its Real Estate run up from 2002 to 2006, after the party death prevails, and whole world ignores Bend, Oregon. We were number in appreciation 2004->2007, and now we're #1 in developer suicide.
Virtually all investors in Bend, post 2008 real estate in the collapsing market have met an untimely death. It's not clear what will happen to the Tolkien village, but we certainly know where the investors are buried. Golf is now dead, so the "Shire" will not become a golf course. Affordable housing isn't selling, so the Shire will not become section 8 housing. Most likely the Shire will become part of Central Oregon 10-30 inventory and just rot in the sun.
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8-06-2008 @ 12:24AM
Graffitimonkie said...
Now that is an interesting house idea, to make it to look like a home out of your favorite movie. Problem is that it is in Oregon...Any sane person would know that bubble or not, there is no sustainability in Oregon to expect any sustainable real estate value.
Bend looks like one of those places with a one company town and as soon as that company packs up and goes overseas there goes the Christmas.
http://www.tranharry.com/
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