Of all the projects downtown, the Belvedere (Sundowner) is the one I could never wrap my arms around. What was it supposed to be when it grew up? Too expensive for UNR student housing. Too far away from the "inner city" development for the locals or investors. Really strange unit plans. High prices. I get what Grand Sierra Resort, Holcomb Lofts, Ponte Veccio, Gray’s Landing, Arterra, Wingfield Towers and others were trying to achieve. But what was the Belvedere thinking?
The notice of default on the $32,000,000 construction loan was finally filed yesterday. This isn’t much of a surprise to anyone who follows downtown. Construction has been at a standstill for months. The first mechanic’s lien was filed in October 2007 (and subsequently released). Literally hundreds of additional liens have been filed by the contractors and consultants since (some cured, most not), and the Reno tax liens have been huge. The "closings" the last few months (2 May was the last one) have mostly been to parties connected to the developer. And several lien holders have been petitioning to foreclose based on their mechanic’s liens.
There are literally millions owed to local contractors and consultants who, most likely, will see zero return from their accounts receivable. There is an additional $6,500,000 in hard money loans on the project that will probably be wiped out. There are probably a few saps that actually bought here to live, and now will find that they are the sole support of the HOA. Can you imagine living in a ghost ex-casino?
RIP, Belvedere. I can only hope the next incarnation of the Sundowner won’t be the King’s Inn Jr. and be left to rot for 30 years as a blight on downtown. I’m not too hopeful.
So, OK, blogmind, what should the Sundowner become in its next iteration?.
31 comments
Hmmm poor Belvedere. This is what happens when you have a poor half-ass plan to convert a casino to condos. Out of the three conversion projects downtown, they did the least amount of modification to their units. At least Riverwalk Towers had intelligence enough to put balconies on the units, and the Montage flat out blows any condo project in Reno out of the water.
I never liked the Belvedere plans much from the beginning, which is why even on my own site, I rarely reported on the project. I wouldn’t call it Kings Inn Jr, because it’s actually a much bigger building. It would be Kings Inn Sr. Also don’t forget about the recent fire too.
Meanwhile, Palladio sold 6 units in July, 3 previously unsold units and 3 resales, and what’s REALLY interesting is the average price increase from each original sale to its resale purchase is 31%, amazing in this market. The average price per s.f. for the four resales was 39% higher than the average received by the developer for his 12 original 2008 sales. So by my count, that leaves just 19 units left in the Palladio out of 92…obviously not the total failure everyone predicted it would be. SOME people are willing to live downtown, and pay $400,000+ to do so.
I wouldn’t worry too much about downtown, it’s actually in a great position when the market turns around in a couple years in my opinion. Things would be much much worse if the Waterfront, Arterra, Wingfield Towers, Chambole, Cedar Dwellings, etc all had been built. Instead of 6,000+ units entering the market, a meager 500 or so entered the market, hardly oversaturating the market (can you say Somersett? lol). This puts the Montage in a prime position, being the most desirable building downtown and being the only project moving forward.
I think the Belvedere could be ressurected as a nice non-gaming hotel. Or perhaps ‘official’ UNR student housing. Or better yet, cheap senior housing.
The first problem was the name. Belvedere? I mean, is that the best they could do? Whoever funded this abortion is getting what they bargained for. When I first heard that the Sundowner was “going condo” I think I laughed so hard I cracked a rib. It’s an ugly building in a schizophrenic location. You have the healing hospital on one side, and the harmful drunks and crazies on the other.
The whole thing smells rotten to me. I’m sure much of the money went straight into the developers pockets. Yet another bubble scam. Belvedere… good riddance you ugly POS. Here’s hoping you get demolished.
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Thank You for finally taking control. Between very immature comments, and”rehashed” postings from other real estate blogs, your site was deteriorating in quality.
I still like the location of the Belvedere, and I thought when the original plans were announced it was going to be affordable housing. In that case, it should have been great for empty nesters and for young people working downtown, at St. Mary’s, or at UNR. I never saw the floorplans, but it sounds as if the units were too small to live in full time and too expensive for the people I just listed. I hate to see it die.
Ha!! Just noticed the picture: it’s upside down.
Wasn’t there some scheme to rent the Belvedere condos out like hotel rooms for short stays? If true, I never understood that angle to the building’s strategy either.
I looked at the floor plans at one time, they were awful.
The floor plans definitely sucked!
HEY ADMIN!!
FREE SPEECH!! FREE SPEECH!! FOR THE DUMB!!
FREE F****** SPEEECCHH!!
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This is off topic (but it’s my blog). In case you missed it Reno Realty Blog’s very own Mike McGonagle was interviewed again by the RGJ. This time for his thoughts on the housing market and what it would take for a recovery and where the market could be headed. They even referred to him as an “expert”. Mike, this is twice in two weeks now. Job well done. Here’s a link to the story:
http://www.rgj.com/apps/pbcs.dll/article?AID=/20080823/NEWS18/80823036&OAS_sitepage=news.rgj.com%2Fbreakingnews
In related condo news, a NOD has been filed for #1005 in the Palladio. I believe this is the first Palladio default I’ve seen so far, but I’m sure Mike knows for sure.
Wazoo, I was really worried that you had scooped me on the Montage default. Turns out to be a HOA filing. Still, not good. There are at least 5 in default at Grand Sierra and a few more at Riverwalk.
OK, I had to delete (edited) a couple of comments on this thread, which I have never had to do before. Trash talk is simply not allowed on my watch. What made you think your comments were appropriate and/or relevant to the discussion, Oracle? Rhetorical question, I really don’t want us all to suffer through a response, but we’ll probably get one anyway.
An apology to BB would not be out of order for what most visitors didn’t see posted. You were way out of line and you know it.
Oracle, one mouse click on our part would have you unable to access this site. No one has used that power yet, since when you are “on”, your voice actually adds a lot to the discussion here. So please, keep focused and keep adding value and cut out the personal attacks.
Mike
RE: delete (edited)
THANK YOU.
(comment deleted by administrator) I’m an equal opportunity censor. No hate for Derrick, either. So let’s get back to talking about real estate.
Mike
Green NV I think you mean the Palladio default. Since no units have closed yet at the Montage it would be hard for a NOD to be filed for one of their units
I liked the recent article in the RGJ–Mike has a lot of good information–Thank you. Has Capurro been having coffee with Plevil? His comments are full of Plevelisms! I love how Mike says the bottom will be sometime in 2010 and Capurro says by the end of the year–but he’s been saying by the end of the year for a few years now?!
hi since we are returning to the time of qualified buyers with down payments and legitimate income, does capurro expect these buyers to magically appear?
I’m obviously in the minority, but I didn’t think The Belvedere was so bad. If the pricing were $50-80k lower, they would have had better results IMO. I liked that they replaced the windows w/ larger and more modern floor-to-ceiling windows that really cut out street noise and let in a lot of light. They also stripped it down to the studs, so it’s a pretty thorough redo. I also thought the exterior color scheme looked 10x better than that of the Riverwalk. Don’t even get me started on the lower units at the Riverwalk that have ill-fitting railings bolted onto the side of the building in place of a patio. It looks horrible.
You know, I didn’t even catch the stucco oracle’s comment, so there’s no need for an apology. Besides, I have absolutely no respect for him, much less his utterances, which would render such a thing futile. I am fascinated by the fact that you, GreenNV, seem to value some of stucco’s posts. For someone who was once referred to as a “scumbag” I find it perplexing. Can you reference some of these writings which “add” to the discussion? I’ve never seen one. From what I recall, it’s always been garbage on high.
Moving along, I read the link which Guy posted. Thanks Guy. I would have never seen the article had you not done so. Congrats, GreenNV. Finally, someone with a little bit of common sense is quoted in the news. It’s a refreshing contrast to the regurgitations of the wholly vapid shills such as Brian Kaiser.
One GreenNV quote which I loved: “Gross mismanagement of growth by city and county planning authorities.” Amen, brother! This can be said for all bubble areas across this vast nation. These corrupt, incompetent dolts had a significant hand in the carnage we are witnessing. Without permitting this sea of housing starts, things could have never gotten so far out of hand. Who in their right mind could have EVER believed there were that many people looking to buy new, expensive homes? The math never worked. Time to kick these pigs to the curb.
Re: “gross mismanagement by city and county authorities…….” have you all noticed that at every new development underway today all over Reno and Sparks the grounds are plastered with huge campaign signs for the incumbent city council and county commission candidates? It looks to me like the developers are giving free advertising space to the politicians they love so much….but I’m just an Ignoramus so what do I know.
I have big campaign signs for my favorite council members in front of my office Reno Ignoramus, not sure what your point is? To be honest, I think the ones I requested signs for, Hascheff, Aiazzi, and Jessica Sverazza (my council member) have done a good job, which is why their signs are in my yard. I mean, for me to be able to walk into Jessica’s office, and say ‘Hey I live in your ward, I have this idea to preserve my neighborhood’ and for her to listen and actually implement and start the process for that very idea (The Wells Avenue Neighborhood Plan and Conservation District) just blew me away. I see their signs on lots of houses in my neighborhood and vacant lots. So what’s wrong with developers endorsing incumbents? Doesn’t it make sense because they are the council members the developers have worked with? I am not trying to be mean or attacking you or anything, just curious and asking
Mike Van H posted:
“So what’s wrong with developers endorsing incumbents? Doesn’t it make sense because they are the council members the developers have worked with? I am not trying to be mean or attacking you or anything, just curious and asking.”
While I’d love to jump all over this, I’m going to give RI a chance to answer as it is directed to him. I know, being the astute blogger he is, he’ll have more than enough to say. But I’d like to ask you, Mike Van H: do you not see the disease associated with these all too cozy relationships?? Wow.
Well Bantering Bear, I’ll be the first to admit I don’t know much about the Washoe or Reno Planning Commission, which is why I didn’t comment on those agencies. I can only watch/attend so many government meetings per month before my blood pressure starts to go up LOL. But I can tell you from watching nearly every city council meeting first hand and personally knowing 2 city council members, that there is not exactly ‘cozy’ reationships with developers. Well let me rephrase that…I don’t see cozy relationships with developers of projects I track the development of. In fact, most projects and subdivisions don’t even come before the city council. They go before the Planning Commission, and unless there is an appeal, amendments or variances that affect the Reno Master Plan or other plans in place, many times it doesn’t even reach the city council. Also, many developments, particularly Spanish Springs, Montreux and other southern developments, are completely out of the council’s control and are governed by Washoe County or the City of Sparks.
I did think the city council went too far giving concessions to the Baseball Developers, but there are contengencies built in to protect the city (if you read the agreement).
So don’t judge me by saying ‘wow’ or whatever just because I don’t see a cozy relationship, instead explain these cozy relationships to me and give me solid examples, because who knows… that may affect my vote. Especially on the Washoe County level.
H
Hello Mike,
I think my point was pretty clear……that the developers give free advertsising space to the politicians they love the most. Why else do they allow their construction site fences to get plastered over with the signs of some candidates and not others? Heck, some of these constuction site locations are as valuable as any billboard location in town. I think we all understand the “I’ll do something for you if you do something for me” world of politics. Most of us here have been around enough blocks to understand that. Now why is it that some politicians get the prime fence space and others get nothing? Just look at which developers contribute to the campaigns of which politicians and in what amounts. Except for the gaming interests, the developers hand out the most money. And fence space. We all get this. I don’t need to say anymore.
Hmmf. Maybe the developers should use their money to complete their projects instead of contributing to politicians. Thanks for the explanation Ignoramous, not ‘all’ of us get that or I wouldn’t have asked. I just figured they did it for the same reason I do it, because I like to endorse the politicians/council members/etc I am voting for/believe in.
Maybe cause Banks and Lenders have decided to cut back on Construction Lending???
The top 10 builders in the country are being squeezed hard
3 of the top ten will ride out this credit crunch..some will file bankrupt some will never build another house again, some will merge and others will just cut back and finish what they have going and try to bail out till market conditions improve..
Also the Banks are saying Mr Commerical Real Estate builder come in with 20%-30% hard costs before we think about giving you a loan
oh and it better not be a spec project
you better have hard cash into the deal and if it is Office or Retail it better be 70%-80% full before they let you in the lending office
Does anyone think the recent fire had anything to do with the condition of the project?
[…] Note to Title Company: This unit had 14 mechanic’s liens attached to it, as do every unit the the complex. Construction and service contracts were written referencing each APN individually, so non-payment by the developer resulted in liens following the individual units. And where can you go to get financing for a unit with liens in a project facing foreclosure? […]