belvedererenoThe Belvedere South Tower went back to the bank yesterday.  With $12,256,031.19 owing on a construction loan, there were no other bidders at the $450,000 opening bid.

Bad for the bank (who releases a construction loan in one lump sum?) but  maybe good the owners in the North Tower.  All the building amenities were constructed assuming the much larger South Tower would be sharing them, but they now all belong to the North Tower and that could cause HOA dues to skyrocket.  All the parking for the South Tower now belongs to the North Tower Owners.  Amenities and parking will need to be renegotiated (AKA blackmailed) to continue any South Tower development.

If these issues can be worked out, the Trustee’s Deed may be good for downtown.  The tower can now be marketed and perhaps a developer with deep pockets will step in.  Some first floor retail is probably viable that close to St. Mary’s.  I suspect the tower will be repositioned as still more UNR student housing.

Any other uses you can think of this beast?  Will the owners of the King’s Inn have a CTJ moment after seeing this comp and back off their $3M+ asking price?

Another downtown hotel/casino is in contract and is in the final strokes before closing.  I’ll tell you more as soon as the sale records.