Well, here it is.  Many of you have asked that I update my February 10th post regarding downtown condo prices.  The updated data appears below.  The short story is that not a whole lot has changed since I compiled the numbers in February.   Though, now with a full quarter of sales data available, the median numbers make a little more sense.

Again, as in February, complete sales data is not available for all the downtown condo projects.  However the data that is available yields a pretty good overview of downtown condo prices at the moment. 

Village at Idlewild Park (1450 Idlewild Drive)

Riverwalk (200 West 2nd Street)

Also one pending for $129,500 ($331/sqft)

Arlington Towers (100 North Arlington Avenue)

There is one Pending at Arlington Towers for $345/sq ft.

The Park Tower Condominiums (280 Island Avenue)

No Pendings at the moment.

The Montage (255 North Sierra Street)

No Solds and no Pendings found.

Palladio (50 North Sierra Street)

Same two Pendings as seen in February: $457 and $546/sq ft; average DOM 205 days.

Data courtesy of NNRMLS April 2007.

Today’s front page of the RGJ had an article describing the relocation of a pair of downtown, 93-year-old Victorian houses.  Read  The houses were moved from north bank of the Truckee River at the corner of Washington Street and Riverside Drive.  If you happened to have read the entire article you would have learned that the homes were being moved to make room for a new a three-story, 11-unit condominium complex, called Ponte Vecchio.   Last month I posted a short blurb about Ponte Vecchio, but at the time did not have much info on the development.  This week I had the opportunity to meet the developer, Mike Mardian, of Mardian Development.

Mr. Mardian was presenting a couple of his newest custom homes, located in Montreux, to a group of agents from our office.  After his presentation Mardian told our group about his newest project downtown, Ponte Vecchio.  Mardian is very excited about this project and described the units as “very high-end” and “unlike anything currently being developed downtown”.  He also said the finishings and craftsmanship used throughout the $3M custom homes that we had just viewed would be integrated into these condo units.  And I can affirm that if he pays attention to detail in these condo units the way he has on the two Montreux homes he has for sale, then Ponte Vecchio should be a very well done project.  To see some examples of Mardian Development’s craftsmanship check out their website here.

After describing the Ponte Vecchio project, Mardian opened the floor to questions.  When asked about pricing, he responded that pricing was still being determined, but that units would range from $400K to over $1M.  When asked what his thoughts are regarding downtown development, he stated he remains very “bullish” on downtown Reno.  He said the city has laid out a good roadmap for downtown development and that he is willing to invest in the long-term future of downtown Reno.  He also reminded our group how far in advance developers must plan when contemplating their projects.   When one considers the time required to acquire land, draw up plans, receive approval from all interested parties, etc, he said he often needs to think 8 - 10 years ahead for his next project.

Now that the houses have been moved, Mardian will submit his construction plans to the city May 1.  He plans to begin taking pre-sale reservations on May 15, and hopes to break ground sometime in August.

P.S.  Mike (from Downtown Makeover), if you’re reading, Mr. Mardian had only the nicest things to say about your web site and your mission.  For all the other readers, Downtown Makeover has a Ponte Vecchio brochure available in .PDF format here.

Add another condo development to the list of downtown condo projects.  According to the Reno Gazette Journal, Mardian Development Co. plans to break ground this summer on an 11-unit condominium development called Ponte Vecchio.  The three-story project will feature "high-end" condos and 7,500 square feet of retail space, including 3,700 square feet set aside for a restaurant.  Prices have not yet been set, but an “interest list” is being compiled.  read

I’m writing today’s post from downtown’s newest store, the Electronic Espresso Internet Café & Lounge.  The “Coming Soon” sign has been out front for months, but the wait is finally over.  And as I look around this very cool establishment, listening to the Cool Jazz wafting through the café, I can emphatically state the wait was surely worth it.

This is not your run of the mill Wi-Fi coffee shop.  The first thing that struck me upon entering the EEIC&L was its immense size.  Having lived in downtown Chicago for sixteen years, I have been inside my fair share of shops (coffee or otherwise) featuring Wi-Fi “hotspots”.  They’re frequently so cramped and crowded one barely has enough room to open her laptop, let alone have any room to spread out and actually be productive.  The EEIC&L has plenty of room to accommodate even the largest widescreen laptops, and then some.

The second thing that struck me was the emphasis on computer hardware.  This is one Wi-Fi hotspot where you don’t even need to own a computer to connect.  I counted no less than eight full-size workstations along the walls of one of the rooms.  Use of these workstations is available for a nominal charge.

The EEIC&L has three distinct rooms.  Upon entering patrons are immediately drawn to a 30’ bar that can easily seat over a dozen people.  This large main room also contains two cocktail tables.  Just to the right of the front entrance is a small stage where nightly entertainment will perform.  As you head to the rear of the main room a second room opens to the left.  This room contains four, glass-top dining tables as well as the aforementioned workstations lining the walls.  But please don’t get the mistaken impression that these workstations resemble the dated equipment found in your local library.  These state-of-the-art Dell desktop systems feature 17” flat panel displays, dual-core processors, screen top digital video cameras, and headphones with built-in microphones.  Additionally, each workstation is separated from one another with a stylish pane of privacy glass – a very nice touch.

Behind the workstation room is yet another room, containing an overstuffed leather sofa and chair facing a wall-mounted big screen LCD TV.  This room, with its bookshelves and subdued lighting, looks very much like someone’s den.

EEIC&L’s menu offers a variety of caffe, tea and espresso drinks.  Food items include muffins, croissants, bagels, scones, pastries, and few sandwiches for the lunchtime crowd.  The most distinguishing feature of EEIC&L’s menu, however, is the computer services featured.  On the same menu along with the Caffe Breves, customers can order PC/Laptop diagnostics, operating system installs, virus removal, and hardware installs.  Very cool, in my opinion.  Owner Brian Depew has owned and operated his own computer consulting business for over seven years, and his expertise clearly shows through in the design and offerings of the EEIC&L.

And the selections don’t stop with coffee and connectivity.  The EEIC&L will present live music on the weekends; open mic night every other Wednesday; and Texas Hold’em tournaments on Fridays.  These points and prizes-based, non-cash games will ultimately lead to a free seat at the World Series of Poker.

I am very pleased to see such a top shelf new business opening downtown.  Let’s hope other entrepreneurs follow the EEIC&L’s lead.

The EEIC&L is located downtown at 134 W. 2nd St., 775.322.7587.

Posted by Guy Johnson.

Firstly, I want to say thank you for the warm welcome that so many of you have extended both publicly and privately.

Secondly, I want to thank you for the suggestions for additional info. As an example, one of the first comments I received, from Grand Wazoo, suggested I report medians rather than averages. This is an excellent suggestion, and one I will incorporate going forward. In the meantime, I have modified the tables presented in my Reno Downtown Condo Square Foot Costs post to include medians. see

Thirdly, thank you for all the commentary and contributions. It’s the dialog that makes this blog have any value. I was pleased to see a great example of this when Reno Ignoramus asked about HOA fees for the downtown condo projects, and EyesWideOpen responded with a list of these fees.  You can find these HOA costs in the Comments of the original post, just scroll down.  Thank you EyesWideOpen for providing the HOA data. Posted by Guy Johnson.

After reading the comments to Diane’s February 5th Dear Arterra: post, I thought I would attempt to address the common thread running through the responses; namely, just what kind of prices does the downtown Reno condo market currently support?

To get an idea, I pulled recent Solds and current Pendings (under contract) for the various condo projects downtown.  When available, the Actives (those presently listed for sale) were pulled as well.  Additionally, I included Average DOM (days on Market) for the Solds.  Although complete sales data is not available for all the downtown condo projects, the data that is available yields a pretty good picture of what’s going on downtown at the moment. Note:  I’ve listed the condominium projects in order of increasing $/sq ft.

Village at Idlewild Park (1450 Idlewild Drive)

Riverwalk (200 West 2nd Street)

Active Properties

For the Riverwalk project I found only one resale unit on the MLS.  This unit sold on 12/4/2006 for $355/sq ft.  There were no Pendings.

Arlington Towers (100 North Arlington Avenue)

Active Properties

There are two Pendings at Arlington Towers: $345/sq ft and $307/sq ft

The Park Tower Condominiums (280 Island Avenue)

Active Properties

Also one Pending for $400/sq ft

The Montage (255 North Sierra Street)

Active Properties

No Solds and no Pendings found.

Palladio (50 North Sierra Street)

Active Properties

For the Palladio I found two Pendings: $457 and $546/sq ft

I realize I’ve presented a lot of data here. I welcome your thoughts and conclusions. It looks like the Arterra will be priced along the lines the Montage and the Palladio. The question remains can all this inventory be absorbed, and at what price? I’ll be monitoring the downtown condo prices, especially the Pendings I mentioned above, and posting periodically.

Data courtesy of NNRMLS February 2007.

Posted by Guy Johnson.

This is a guest post from a regular reader who had been looking forward to purchasing a condo downtown… until he saw the price list:

"Dear Sir/Madam:

My wife and I were very excited when we first heard
about the Arterra being built near downtown. The location has a
lot going for it with its close proximity to downtown, as well as the shops that
are along California Avenue. We feel that you’re offering some
very livable plans laid out in a way that makes the most use of the
space. We particularly like plans 2g and 2d.

We filled out the mortgage application to receive an
invitation to your first sales opportunity. We RSVP’d to your most
recent email indicating our desire to attend the sales event. Having now looked at the attached information sheet, we would at this
time, decline the invitation.

We currently live in a two-year-old home in
Northwest Reno near Somersett. Our home is approximately 3500 sq ft with a current realistic value of about $500,000. This reflects a
significant value reduction since last year. We intended to occupy
a unit at Arterra to gain a more carefree lifestyle.

We also own several investment properties in
Reno/Sparks and consider ourselves in touch with the current market in the
greater Reno area. All of the property we own was bought with the
intention of holding it long term, and we have never looked to turn a property
over quickly for profit. The proposed prices of Arterra units
reflect to us a negative gain for at least seven years.

I have lived in Reno most of my life and have
watched downtown go through several boom/bust cycles. Buying in or
near downtown reflects a calculated risk on the part of the buyer. Your property being the only new high rise does differentiate it somewhat
from other buildings, but I don’t believe it will be enough to justify the
prices. Based on projected mortgage, taxes, insurance and HOA
fees, it looks like the average Arterra owner will be paying out over $3500 per
month or tying up a large amount of money representing a significant opportunity
cost. I don’t think there are enough people living in the Reno
area willing or able to meet that obligation for a condo. I
further don’t see a demand large enough from potential out-of-town owners
willing to use such a large amount of capital with no return. Reno
is a nice area but does not have as much to offer compared to other markets.

I apologize for the length of this email, but we
wanted to let you know what we are basing our decision on. My wife
and I were seriously considering a move downtown and were disappointed to see
another project come in at a price point that is unrealistic to support a ‘family owner occupied’ downtown. Best of luck and success with
your project.

Sincerely,
Prudent Buyer"

Studios
644 to 766 Square Feet
From $325,000s to over $400,000

1
Bedroom / 1 Bath
824 to 1,112 Square Feet
From $369,000s to over
$500,000

1 Bedroom 1 Bath plus Den
1,094 to 1,130 Square Feet
From
$475,000s to $600,000

2 Bedroom 1 Bath
1,033 to 1,400 Square
Feet
From $419,000s to high $600,000s

2 Bedroom 2 Baths plus
Den
1,422 Square Feet
From $613,000s to high $700,000s

2 Bedroom 2½
Baths
1,693 to 1,865 Square Feet
From $699,000s to mid $900,000s

2
Bedroom 2½ Baths plus Den
1,978 Square Feet
From $798,000s to high
$900,000s