Northern Nevada Urban Development aka Tessera South just received a NOD on their 128 E. 6th Street property. This following almost losing 595 Lake Street at a tax sale last week (it is unclear if the owner or the lender paid off the delinquent taxes) and losing the linchpin corner of 6th and Virginia to foreclosure. And they are pushing to have their STAR Bound entitlements extended!
The conventional wisdom was that downtown would transform itself from the North Virginia Street corridor outwards. But you have Italian Capital and NNUD criminally over leveraged on their Tessera properties, Siegel Slums now anchoring the south end, and disinterested casino and Old Money Reno owners in the middle. So it will literally take a work-around, and that is what is happening.
Yes, the Siena is changing hands and will go upscale (for Reno) and non-gaming with Nando (Montage, CommRow) at the helm. Well funded Simon Properties owns the big lot at 2nd and Lake, and a prominent local developer just bought the sales office for the Waterfront Tower across the street on the SW corner of 2nd and Lake. There is Startup Row growing on the West of downtown, and the Pignic distict to the south connecting to Midtown. Development is progressing AROUND downtown, not in it. If you have driven NVA lately, you can see that the retail element continues to decline and even the tattoo parlors are failing.
So this is a come to Jesus call for the traditional downtown core ownership. Upgrade, sell, or die – Reno won’t wait and simply does not need you anymore.