The Town House Motor Lodge at 303 W 2nd Street sold at a foreclosure sale this morning for $1,725,546.00. In the fastest rush to Washoe I have ever witnessed, the transaction has already recorded.
This was pretty much the last vestige of the W 2nd Street District that Don Clark controlled. He lost his own building on Bell street a couple months ago. Secundo Vita bought the Town House for $4.4M on 9.15.2015. There was a new $1.1M 1st loan, and the seller (Joey Laub) took back a 2nd for $3.3M which is an unusually risky loan. They defaulted on 11.23.2016 as the project collapsed. The original 1st Note holder sold it to Reno Property Manager LLC who low and behold turns out to be Jacobs Entertainment of Neon Line fame.
So Jacobs scored 79 hobotel unit for $21,000/key. The current market is around $60K/key and several are asking $100/key right now. This also works out to $35/SF land value, where Jacobs has routinely been paying $100+ to complete their assemblage. And poor Joey ate dirt.