Eleven Eleven Eleven

– 8 on Center hasn’t been on the radar in a while – the project you loved to hate. From the day they started sales, there were already a couple “sold” units. One of them was 894 S Center, which sold for $495,000 in May 2007 and set the comps for the project. Now listed as an REO for $189,900. Given the Holcomb Townhouses sold out quickly at $160K and a resale recently closed at $199K, $190K might just move this unit.

The unit next door at 890 S Center sold for $475,000 in February 2008 to the same owner as 894, and is also in the advanced stages of foreclosure. Both units were sold by the project’s developer to her partner in what were definitely not arms length transactions meant to prop up the project’s value. It is ironic that the “Midtown Renascence” that was touted in the early days of 9 on Center has really taken hold lately.

– As far as I know, there is only one manufactured home in the Old Southwest, 1059 W Plumb. I just shook my head in disbelief when this one was installed in 2007. Don’t get be wrong, I am a true fan of modern manufactured housing if done well like the LV House or the Breeze House. But an Elko Special on Plumb? That was always just wrong.

The house sold for $380,000, and it appears that the owner then undertook an aggressive remodel and upgrade project that remains “unfinished”. Now listed at $96,800, just $2000 over lot value in 2007.

– OK NRES fans, here is the latest update on their activity from June 20 until 4 November 2011. A couple new TD purchases from the 4th are missing., and a couple of bad data entries have been corrected. In June, bought 25 sold 26. July bought 14 sold 24. August bought 24 sold 19. September bought 24 sold 21. October bought 12 sold 18. Overall, bought 99 sold 108. Their gross margin continues to run at just over 40%. They are running at a gross profit of $1,000,000 per month. In addition, they are also buying a few properties as REOs and under the names of relatives or other aliases. But I think their net margin is shrinking. There is definitely more competition in the low end TD arena as the “investors club” is augmented by the amateurs. And painting a 2000 SF $100K TD costs just as much as painting a $300K TD.

– I wrote about the Boomtown lands for sale in the Western Gateway post a while back, and the land use map there will help clarify the Boomtown sale this week. $12.9M for the hotel casino, parking, presumably the gas station / car wash is a pretty good result compared to $3.9M for the Siena and $40M for the GSR. The buyer M1, has a solid management that came out of the Hard Rock and Stations Casino groups. The surprise was St. John Properties moving in on all the undeveloped land for $9.3M. SJP is based in Baltimore, so they were a bolt from the blue. Where was local DP Dermody Properties? My guess is that SJP will end up with the RV park, though that is only an educated guess. I’m guessing that the land attached to the additional $3.8M option is the properties south of I-80 including the Sierra Fire Station and the residential land that wraps towards Belli Ranch (yikes!), though it is not clear which party has the option. Part of this land is actually zoned for another casino.

– This one is a puzzler, not that it sold for $9.8M with $45M owing , but how it all came down. [See more on the KR sale here.]

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About Mike McGonagle

An architect, business owner, and compulsive public records hacker, Mike reads the tea leaves of the local real estate market from a unique perspective.. A former Chicagoan, Mike earned his MArch from Harvard University. Mike can be reached at mike@macassociates.com or 775-345-7435. His continued musings can be found on the REreno.com blog.
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7 Responses to Eleven Eleven Eleven

  1. Avatar Goodnight_CommRow says:

    The Kiley Ranch deal should be a lesson to all the “regular” folks that you will be completely shut out from competing for the really good properties. The same developers who lost their @sses are buying the properties back for pennies on the dollar through shady backroom deals such as this Kiley Ranch stenchorama. The wealthy and well-connected don’t play by the same rules as you and I- they simply make them up to suit their own financial interests.

  2. Avatar Fence sitter says:

    Agree, Goodnight. But sometimes they get caught, like the big Reno lawyer who is in Federal court now explaining how he built his house completely on USFS property, missing his own adjacent prop completely. No way out for this big guy…

    Great stuff Mike.

  3. Avatar here here says:

    Goodnight makes the definitive statement on the Kiley Ranch issue. Not sure much else needs to be said.

    What’s an average citizen to do? Aren’t there state attorneys specializing in financial fraud that should be looking into this? If Mike, a layperson with access to no specialized databases, can quickly and easily connect the dots on this issue, then why cannot a govt. prosecutor whose supposed responsibility is to protect the public?

    Then we wonder why the Occupiers are so pissed off.

  4. Avatar Tom Joad says:

    The news here is not that another insider deal occurs. Yes it smells pretty bad, but really, what else is new? The good ol’ boys always have, and always will, take care of themselves.
    Apart from the odor emanating from it, the message is the continuing capitulation of the real estate market. From Kiley to 8 on Center, extraordinary declines in values are everyday events all across the commercial and residential markets in Reno-Sparks.
    Yesterday I received the 2012-2013 assessment for my house from the Washoe County Assessor. It shows an 8% increase in the value of the building and a 40% decrease in the value of the land.

  5. Avatar Grand Wazoo says:

    If I recall correctly, five of the original eight sales of 8 On Center were to the developers – either directly, or by a third party transaction that failed the smell test. I always thought it was a great project visually, although living in one would mean you’re humping up and down three flights of stairs all day. What turned some of us off to the whole thing was the obvious sham sales and declarations from local boosters that it was “sold out” and thus a $500K condo unit in not the best part of town was a great idea and made perfect financial sense – because they’re “sold out!”.

    As it turned out, and as some of us believed, “not really!”.

  6. Avatar Rory says:

    Tell us more about this Big Reno Lawyer….I’d love to pull the court docs on that doozy!

  7. Avatar Fence sitter says:

    Look up David R Houston’s newest construction on Mtn Rose Hwy…I understand all the burden is on him to show he has a bad title, but even so the 8000 ft castle will come down. Occupiers will proved free labor. Ps I’m not a lawyer and this information is in no way implying wrongdoing on anyone’s part.

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