The results from the Riverwalk Towers auction are in. Units 304, 412, 702, and 1606 all closed for their auction prices of $70K, $70K, $105K, and $70K. These were the 3rd-6th of the "absolute auctions" that day. The 1st unit "sold" went for $225K and the 2nd for $155K – both these bidders walked away from their deposits (5 or 10% – I can’t remember) once they saw they had overbid. OOPS!
Weird action at the Grand Sierra Resort. A group named Shepherd Mountain Investment Group LLC purchased 11 foreclosed units from HSBC on 23 June. Prices were generally in the $50,000s. This was a huge hit for one of the "preferred lenders", and other units are entering the foreclosure pipeline weekly. Another group bought 3 penthouse units for $832,000. I’m sure the property values will be helped by the Super Wal-Mart under construction next door! Still, how do you come up with any sort of value for these units?
Waterstone Apartments at Kiley Ranch went back to the lenders in a Trustee’s Sale for $23M on the $38M loan. This is really the first major occupied complex that I’ve seen actually go back to the bank. I know at least one of our readers lives there – keep us posted on the activities and changes!
The Montage continues its stay in suspended animation. 31 units have closed, and at least 27 units have recorded cancellation documents. Still, this is only represents action by about 40% of the reported contract holders – where are the others? Some may be trapped in units that the Montage cannot legally sell at this point, since they have been removed from the project condo maps and may be sold as a block to vulture investors (penthouses, lofts, rowhouses, and terrace townhomes). But what are the other 80 or so buyers up to?
The Silver Creek condos at 6850 Sharlands are getting "Smithridged" in a big way. The $189,000 2 bedroom units are now going in the $80,000s and below. These are really nice places that cash flow positive at these prices.
This what the week of July 13 – 17 looked like on the NOD front (it is sorted by zip code). Just another week, but I don’t see the expected increase in high end and decrease in low end properties entering the foreclosure arena that I would expect, or that might point to some sort of solid ground (= Bottom). It looks like just more of the same. As always, a few interesting names show up on the list. What do you all make of it?
Give me sunset over Verdi Peak about now so I can get the grille fired up for a Friday Feast! Enjoy the fuego temps this weekend, and check out the Pacific Islander Fest downtown. Stroll around Wingfield Park and experience the sheer bliss of summer in the city. I think I’ll check out Rock Park’s new kayak zone (as an observer). The economy may still suck, but life is still good!
Reno Ignoramus
If I recall correctly, those Riverwalk units that went for $70K at auction were around 1550 sq. ft. or so. So a couple of folks got a pretty nice deal at about $45 a sq. ft.
I’ve been in those 1500 sq. ft. units and I would have readily paid $70K if I was an out of towner looking for a 2d place in Reno for weekends or getaways.
This is not very happy news for the other Riverwalk owners who paid bubble prices however.
FutureRenoHomebuyer
Reference the Jun 2007 post by Diane regarding the overwhelming appeal and solid investment of downtown Reno that was:
https://renorealtyblog.wpengine.com/2007/06/i-believe-in-downtown-too.html
My, how things have changed.
sleepy
quick question:
Is it possible to make an offer on a property with the stipulation that your house sells first, BEFORE your house is actually on the market???
here’s the deal. I am interested in a property but need to sell my house first. If I cant get the property then im not interested in selling my current property in order to get it..
Reno Ignoramus
Sleepy, you can make any kind of offer you want, including one wherein your obligation to buy is contingent upon your selling your house first. Whether the seller accepts it is up to him. It would be a two edged sword in this market. The seller would likely be happy to have an offer, but not too happy at the prospect that his house is off the market while waiting for your house to sell. I supppose at the least your offer would have to have some pretty strict timelines about how long you would have to sell your house. I also suspect the seller would want to see that your asking price is VERY realistic for the current market. You might find that the seller, if he accepts your offer, would want a provision that he can keep marketing his house, and if he attracts another noncontingent offer, that you would have a stated time to remove your contingency.
Future,
This blog has had some very spirited discussions about the downtown condos in the past. Most of the posters here were of the opinion that the developers and their dream on pricing were in for some big hurt. It seems the posters here were pretty much right on, as usual.
bob
http://rgj.com/article/20090725/BIZ/907250326/1071/New-home-sales-up-239.7-
…lol
Grand Wazoo
As I recall, those 1500 sq/ft condos in the Riverwalk were intially priced at around $450K. I wonder if the complete pricing collapse of those units will start a small stampede of original buyers walking away from their mortgage and letting the units go into foreclosure.
As anyone ever been in one of those units and would care to comment on their quality?
Worried Guy
Yes, I lived on the 2nd floor of the Riverwalk Towers…The units are good quality inside, but there are problems. First off, the condo association was a real mess from 2006-08′, but I don’t know about today. The noise out on 2nd and West St. stinks. The neighborhood is questionable at times. There was a water leak and cracking down in the underground parking which had resulted in a lawsuit between owners and the builder from what I understand. All in all, the unit I was in went out in 06′ for around $200-$225K and today is what $75-$100K? I am not sure I would even buy at that reduced price.
MikeZ
I figured that by now, the greater fools would have been culled from the herd. Guess not.
sydney
The onely one awhake at home well besides the dog’s and horse <Noodle>
DonC
When the housing market goes bust the condo market can go into the tank in ways that defy belief. This is probably a good opportunity to pick up a unit in a good project like the Montage, assuming of course that the price is right. (These prices are right).
Where I am during the last bust people lived almost for free in downtown condos for five or more years. The developers/banks just wanted the buildings occupied. Of all the residential property in Reno, the downtown condo market will probably go down the most and stay down the longest.
John Rusin
Prices are right at the Montage? Hardly, as their square foot cost is among the highest and their market reduction (about 30%) is well under the 50% or so drop in condo values so far. And I’d be very concerned about rising association fees in the future, making up for the lack in maintenance income.
jimmie
Yeah the Silver Creek establishment is a total bummer. We have lsot over 100k since buying in 2006. Live and learn. Its still a nice place to live though.
billddrummer
I worked with a guy who lives in Silver Creek and he bought at about 90% of peak. He was really excited about owning his first home.
I wonder if he’s still as excited?
cashflownotes
The auction action is starting to look familiar. Think RTC 1980’s. By the time all is said and done I think the 80’s will be looked upon as the good old daze.
Waterstone Resident
So the Waterstone management changed – they fired the one REALLY good maintenance guy and now we have temp people from other complexes. Service is slower and they can no longer take credit cards for rent (so no more airline miles).
Considering Waterstone
How’s Waterstone now? We’re reconsidering it…