Hundreds of acres of prime real estate within Missoula's urban fringe are up for sale in a bankruptcy auction.

The sale already has some brokers and developers nationwide drooling.

More than 500 acres near Mullan Road and Kona Ranch Road, about eight miles west of Missoula, appeared last week on an Oregon realty and marketing company's Web site.

Nancy Isserlis, the appointed trustee in the case, is advertising the property nationwide, starting with the Wall Street Journal. It's being pitched as a developer's dream come true.

Riverfront property. Close to Missoula. Access to city sewer. Flat and rolling terrain. Located in a high-growth area. Not to mention all the nearby recreational opportunities and proximity to the airport.

The land, known to some as “Kona Ranch,” is owned by Bonnie Snavely, a local real estate broker who for several years proposed building an extensive 400-unit condominium development at the site.

Three times Snavely filed for Chapter 11 bankruptcy before a federal judge in Washington state in July appointed a Spokane attorney to sell the property to the highest bidder - and quickly.

Debt on the property has surpassed $14 million, and interest is accruing at $5,200 a day, said Isserlis. Bidding closes Dec. 5.

To have a big chunk of land like that up for grabs in one of Missoula's highest growth areas and so close to Missoula is rare anymore, said Susan Liane, president-elect of the Missoula County Realtors Association.

Liane suspects it's worth a lot.

“It will achieve everyone's piquing curiosity,” she said. “People will figure out a million different ways to use that land.”

Included in the sale is a downtown commercial building at 601 W. Broadway, located across from St. Patrick Hospital and near the Riverfront Triangle. It was formerly leased to a tire and auto shop.

Snavely, who inherited most of the land, said Tuesday that she's saddened by the outcome, but hopes the sale doesn't move forward. She declined further comment without her attorney present.



In the past, the land, which stretches east to Cusker Lane, was used for cattle grazing and growing alfalfa and hay. It's where firefighters set up camp during the Black Mountain fire in 2003, and is near a conservation easement the city of Missoula recently helped purchase using open space money.

The Stillwaters of the Clark Fork subdivision, which is to consist of 70 custom homes by 2021, splits a portion of Snavely's land.

As of Tuesday, no bids had been received, Isserlis said.

There's certainly a high interest, however.

Real estate brokers from as far away as New York have inquired about the property since it was posted online a week ago, Isserlis said. Even before that, Snavely dangled the land and her ideas regarding a subdivision and condominium project in front of potential developers and investors for years, Isserlis said.

“This isn't being tested on the market for the first time,” she said.

A Seattle appraisal group hired by Snavely valued the property at around $30.5 million, according to court records.

Although Isserlis thinks that's a tad inflated, the sale should pull, at the very least, $10.4 million by looking at the minimum bids. The final sale is subject to approval by a federal judge. Buyers must pay cash.

“If you want to make an offer here, you have to have real money,” Isserlis said.

Interested buyers can bid on the whole property, or one of eight different parcels ranging in size from 8 acres with no minimum bid, to 363 acres with a minimum bid of $6.1 million. Whatever group or individual bids the highest, wins. Interested buyers also can bid separately on the downtown commercial building.

Dates to view the property are Oct. 19, Nov. 8 and Nov. 29 by appointment only.

To check out the land for sale, go to www.rmnw-auctions.com.