Gold Dust West Buying the Sands

The press release announcing the agreement for Jacobs Entertainment, Inc. to purchase the Sands Casino snuck out on New Year’s Eve Eve, and didn’t draw much attention.  Now the Piazzo family has sold the GDW building to what sure looks like Jacob’s when you track down the signatures.

I’ve talked about all the acquisition activity in the 4th Street Corridor, and Jacobs now controls a huge swath of land.  I haven’t heard anything about what the project will become – unlike some other developers, they are keep quiet.

Large version HERE.

Portfolio Buy

TDC Reno Office 1-DE SPE LLC just purchased most of the AMH/TICO/Alex House portfolio of properties in the biggest transaction of the year.  A combined $22,360,000 for 6 buildings totaling (my best guess) 144,877 SF at $150/SF.  There are also 3 parking lot parcels thrown into the mix.

TDC is Tolles Development Company, Par Tolles, formerly the main man at Basin Street Properties and now on his own mission.  In an industry full of scum bags and loosers, I can tell you that Par Tolles is the real deal – someone who can be trusted absolutely and respected by the entire corporate real estate world around here.  I wish him success.

How did AMH do in the deal?  It is really impossible to tell.  They bought in the last swell, but also invested heavily in improving their properties.  I don’t think they lost.

So here they are:

100 Washington.

140 Washington.

275 Hill.

241 Ridge.

201 W Liberty.

301 Cordone.

Small Leases = Big Impact

cafe-jefe-logoReno is a hot bed of start-ups and entrepreneurs right now.  Unfortunately, most are uncreditworthy, have limited funding, and business plans that only state that they are going to become the Next BIG Thing.  So convincing a landlord to believe in your business and sign the lease rates an ovation.  Here are a couple new tenants downtown:

  • Cafe Jefe has a bricks and mortal location in the “burbs” on Lakeside, but is probably better known for their bicycle based cold brewed coffee mobile facility.  The are reportedly moments away from signing up at the El Cortez for a 24/7 coffee shop with in-house small batch roastery.
  • RhinoHub is a growing local digital marketing and branding venture.  They are new tenants at Dark Horse Property’s 1139 S Virginia Street project.  It is truly great to see a mix of uses entering in to this MU district.  We need the business/office component to support the commercial/retail component in MidTown.
  • 22 W Taylor Street Salon and Boutique is a new addition at you guessed it, 22 W Taylor Street.  This is a conversion from residential to commercial project, very in keeping with the changing Midtown landscape.
  • Finbomb Sushi Burrito and Poke Bar is coming to the old Aces Tattoo space at 681 (677) SVA.
  • Need to book a room after your bocce binge?  RRenaissance Reno Hotel is accepting reservations for 10 April.  Rates look about 20% above the Marriott Courtyard by the ball park, which doesn’t have trout painted on the ceiling.

North Valleys

Of the 30 some thousand new housing units we are projected to need over the next 20 years, the vast majority will be build in the North Valleys.  There is a Special Session of the Reno City Council at 6 PM Tuesday to start the discussion on what the impacts will be.  Go in person, watch on Charter channel 194, or watch online.  This is an important meeting.

Where is development already approved or pending?  Check out this MAP from the Regional Planning agency.  Then imagine the Spaghetti Bowl at 8 AM in 2 years until RTC and NDOT catch up.  Kids bussed to the nearest available schools with capacity.

Welcome to the boom town.

Downtown Dirt

italian-capThe tea leaves were right – the Standard@Reno student/housing (they never confirmed their intent) project is dead, and the site is on the market.  At $80/SF raw land cost!  That’s a cool $9.6M for a 2.75 acre blighted city block.  The Tessera properties must be worth DOUBLE that.

The W 2nd Street District has picked up their permit for their initial 28 unit condo project at 235 Ralston, and admitted that they are pursuing 2 avenues of funding when they addresses the RAAB (Redevelopment Agency Advisory Board) yesterday.  You don’t pick up a permit unless you are pretty close to funding, but it is generally a requirement by the lender.  This one is a little lest costly because the sewer connection fees are being deferred until Certificate of Occupancy.  In a blow to the District, 3 more parcels seem out of the developer’s hands.  The 7-11 Motel sold, and The Siegel Group is marketing their 2 vacant lots on 2nd Street as Build To Suit (“Great Location for Franchise” – they really don’t get Reno yet, do they?).  I have no indication that Reno is warming to selling their parking lot or abandoning Stevenson and Church Streets for this project (maintaining the Urban Grid is a core value), and I’ll believe the purchase of the UNR Nelson property for $7M when it records.  In blue, the properties owned.  In red, the properties that seem out of play now.

Casket Truck stuck at Sierra Canyon in the last storms.  No comment – it would be shooting fish in a barrel.

sierra-casket

 

Smaller Stuff

  • 214 Lake Street is the 17,206 SF parking lot on the corner of 2nd and Lake, kitty corner from our newest hash house.  Purchased for $1,365,000 by Lake Street Property LLC, whose address happens to be the Aces Ballpark.  This makes me think that Simon Properties may be about ready to fire on their Truckee River parcel just to the south at 1st and Lake.
  • Remember the game changing Standard@Reno student housing project that was going to single-handedly rejuvenate Downtown?  Home Depot quality For Sale signs have now been posted on the property.
  • If the West 2nd Street District is about ready to release “ground breaking news”, why are they 2 months late repaying their $55,000+ sewer lean on the Town House Motel?
  • The Wells District has proposed new parking non-requirements to match Midtown.  No parking will be required for bars, restaurants and retail establishments.  Go to page 16 for the specifics.  I generally support this change to get Wells out of its ugly sister position when competing with Midtown.  Cafe Deluxe was erased due to parking requirements.  The huge danger to the City is opening up the Neighborhood Plan for parking revisions without addressing the Residential sections.  I suspect the developers will not support this without a sensible reduction in Residential parking requirements.  All the City has to do is agree to round down on parking requirements (as Sparks has codified).  Their current policy to round-up makes urban residence actually have higher parking requirements than Somersett!
  • TCA is once again starting to terra forming their property at Robb and 80.

 

Big Stuff

big-stuffHere are some scoops and fun facts to know and tell:

  •  Charles Schwab is moving their Headquarters from San Francisco to Rancharrah.  No joke.  No news about the actual size of the development or the number of departments / staff involved in the move.
  • The Switch SUPERNAP Building 1 has gone live.  This is the first hosting building of what will become the world’s largest data center.
  • Apple has submitted a permit for Project Isabel, a 372,893 SF data center and administration project at their existing data center east of Sparks.  This will add over 60% capacity to their existing facility, and they are doing it on one permit. (note – permit now shows as Withdrawn)
  • DR Horton has purchased the West Meadows Estates project out near Verdi for $11.5M.  Not my 1st choice, but certainly a step up from the developer who entitled the project.

 

Permits and Applications

9825-svaReno, Sparks, and Washoe are now all on the same Accela permit tracking software.  The URL has been updated, and you can find the search page HERE.  It still has a LOT of bugs to work out, but it is fascinating getting all the information in one place.

Tracking submitted permits is one thing, but tracking actual issued permits is another thing.  Washoe has their weekly Permit Statistical Data, but Reno fell off the charts for a couple of months when the Accela upgrade went south.  DECEMBER reports are starting to show up for Reno.

An interesting application that showed up is WDCA16-0001 for 9825 SVA, a 10.6 acre parcel adjacent to the Southcreek retail complex and across the street from New Yawk Pizza.  The application refers to Section 302, which is Washoe Development Code for permitted uses.  9825 is in the SVA Transit Corridor Zoning already (but where is the transit?) and has pretty much Carte Blanche, so I am a bit confused.  My guess is that additional lands are being proposed to be added from the adjacent Washoe County lands to the SVA Transit Corridor.  We just need to train the permit techs to include more info!

 

Summit Club NOD

summit-clubIs there trouble brewing for the proposed 584 unit Summit Club apartments next to the Summit Mall?  The developer received a Notice of Default today on their $7.25M loan.  This project is notable because it includes using some State bond funds that allow for a 20% workforce housing component.  The default is notable (“only a flesh wound”) since Reno Land Development is also the force behind the Rancharrah and Park Lane Mall projects – they are mostly out of Meridian 120 at this point.  I have no inside information, but it appears they couldn’t cover their short-term financing.  In the dignified world of commercial real estate, this would normally generate a Tsk Tsk from the lender and not a speedy NOD as seen here.

auto-musuemWant to buy 4.58 prime acres on the Truckee River in downtown Reno that includes a 77,836 SF building, and have a budget of $160,000?  It worked for the Harrah Automobile Foundation, who just wrapped up the purchase of the National Automotive Museum at 10 S Lake Street from the Reno Redevelopment Agency.  They have to maintain ownership for 15 years, but then could sell or redevelop the property, and that’s a sweetheart deal I’d take in a heartbeat.  The Foundation owns/controls the adjacent former Grant’s Landing site, and their stated intent is to expand the museum (Google ranson webster porsche), but there are absolutely no guarantees in the purchase agreement.  This proposal has been working its way through the process for a couple of years now, and the current Council may not have been aware of the commitments made by the former Council in their final days, or cared enough to stop this egregious deal.