Is 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.
Want 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.