Valley Investments building for sale

The home office of Valley Investments, 1445 N. Seventh St., is listed for sale at $449,900. The building has 2,718 square feet of space.

One of the most visible reminders of the collapse of Valley Investments is for sale.

The company’s home office at 1445 N. Seventh St., a few blocks north of North Avenue, is listed for $449,900.

There is “strong interest” in the 2,718-square-foot building that sits on about one-third of an acre, said Kirk Rider, the Grand Junction attorney whose firm was appointed receiver for Valley Investments last year.

Realtor Karl Clemons said he had heard “from chiropractors to dentists to attorneys to small-office sales” interested in buying the building.

The building is a “good city location,” Clemons said. “A lot of traffic goes up and down Seventh Street.”

Rider said he began receiving inquiries about the property soon after he took over as receiver.

Sale proceeds from the office building, as well as other Valley Investments holdings, will be pooled to compensate investors.

In all, it’s possible that the tangible assets of the company will exceed $5.5 million, Rider said in a report filed with the Denver District Court that is supervising the receivership, marking a more optimistic tone than when he voiced concern in a conference call with investors that the estate would not amount to much.

While investigators have found that 421 investors invested nearly $31 million into Valley Investments, the company returned about $15.7 million in the form of interest payments or principal to investors.

The receivership will calculate each investor’s claim as the difference between the cash invested by that investor and all funds received by that investor over the lifetime of the investment, according to the report.

The $15.7 million in payouts to investors “will have the aggregate effect of reducing ‘net investor claims’ ” to about $14.4 million, the report said. “Of course, the effect of this ‘netting’ will vary greatly from investor to investor.”

Rider last year warned investors about the possibility of “clawbacks,” or court actions designed to force the return of Valley assets to the receivership.

After analyzing financial records and claims, Rider said the receivership had decided “clawbacks are not going to be a big factor at all.”

In addition to dealing with claims by investors, the receivership said it expected to approved about $445,000 in claims from unsecured creditors and they will be paid on the same pro-rata basis as investors.

Valley Investments owner Philip Rand Lochmiller, his son, also Philip Rand Lochmiller, and an employee, Shawnee Carver, are awaiting trial in federal court on several charges each of mail- and securities-fraud related charges.

U.S. District Judge Phil Brimmer is considering a request by Assistant U.S. Attorney Michelle M. Heldmyer to conduct the trial in Grand Junction.

In plowing through records of Valley Investments, the receivership has uncovered “an almost infinite variety of title problems affecting most receivership property, all created by the business practices (of Valley Investments,)”  the receivership wrote.

A condominium in Mexico that is owned by a trust that lists the elder Lochmiller and his wife, Donna Sue, as the primary beneficiaries.

It is proving to be “a difficult, expensive and time-consuming process to obtain possession, let alone transferable title, to this property,” the report noted.

Through the end of 2009, the receivership had incurred bills from attorneys, accountants and other professionals amounting to $235,000, the report said.


Commenting is not available in this channel entry.

Search More Jobs

734 S. Seventh St.
Grand Junction, CO 81501
970-242-5050; M-F 8:00 - 5:00
Subscribe to print edition
eTear Sheets/ePayments

© 2017 Grand Junction Media, Inc.
By using this site you agree to the Visitor Agreement and the Privacy Policy