Basin Street Properties’ Park Center Tower at 300 E 2nd Street received a Notice of Default today. When purchased in 2007, Park Center Tower LLC assumed a $17,000,000 loan from the seller. The 6 July 2013 payment was missed, and there is now a $1,478,044.01 balance due (I assume this is missed payments and penalties, and not the total loan remainder). At least property taxes are current.
Basin Street was a true believer in Reno and they are a major player downtown. They have been planning to build and extended stay hotel just to the east of Park Center Tower and across the street from the Aceball field, but the promised permits just never seen to get pulled.
Basin Street leased up the building with Jones Vargas, Fennemore Craig, Fusion Contract Centers, C4Cube Incubator, Slice of the Peak and other tenants. But at what cost? The achievable rents do not like they could support the loan carrying costs and the tenant improvement investments.
I am hoping this is just a tactical default, and not reflection that downtown class A projects are unsustainable. Losing Basin Street would be a devastating body blow to the progress that has been downtown to date, and a stain on Reno’s ongoing redevelopment efforts.