The brand spanking new private student housing project northeast of UNR has just changed hands for $48.5M. These are rented out by the bedroom, and the sales price works out to $54K per bedroom. Granted the bedrooms and common spaces are furnished, and there are some nice amenities, but the price is jaw dropping. Rental rates are in the $5-600 per room per month range. The buyer is Horizon Realty Advisers out of Seattle.
– The sale of the Kings Inn is schedule to close in about a month. There are currently 154 rooms in the building and the 2nd floor can be converted from casino to residential. The new owner is planning 144 units. Based on current room sizes, the product mix will be about half 1 bedroom and half studio units. Assuming a $10M investment for the property and improvements, this works out to $70K per door. I would have a tough time making that pencil out. Any comments on that, Marmots?