April TDs clocked in at 191, down from March’s 236 and February’s 256. They really trailed off as the month went on, and that downward trend is continuing in May (so far). NOSs for April were 498, down from 513 in March. Still, the second highest ever recorded. NODs went up to 931 in April from 926 in March – another all-time high. I see absolutely no evidence that a significant number of defaults are getting loan modifications, only adding to the shadow inventory.
The now closed Silver Club received a $33,000,000 NOD today from 1st National Bank of Nevada. The owner also received a NOD on his home, and has a $254,530 IRS lien in place for 2005 and a $133,880 lien for 2001-2. How did nobody see this one happening? Sad, I like the dive, and hold nothing against the owners.
10298 Morning Song is a property I have tried not to comment on. I have great respect for the quality spec house builders, but an awful lot of them have been caught without a seat when the music stopped. The home was bought on the courthouse steps for $535,500 by one of the Investors Club members. Amount owing at sale was $1,016,000, and I think their were second loans involved that got wiped out. The house will show up on CL and the MLS for about $700,000 shortly, and continue the downward pressure on Arrowcreek values. 5560 Rue San Tropez also when back to the bank today.
I keep looking for commercial properties in peril, but thus far, there really aren’t many of them. A few up in Spanish Springs, some Chauvin Properties disasters, a few in the South Meadows, Carano’s at the Summit. All the smart money says commercial is the next sub-prime, and in my gut I believe them. Incline jj forwarded me a link that stated that community banks are holding $3 trillion in non-performing commercial loans.
For you fans of the orgy shower (with adjoining chapel), 2865 Sagitarrius is back on the market for $1,985,000 fully furnished. Formerly privately listed at $3,500,000, this one won’t last long.
For you construction geeks, a custom house framed with SIPS (Structural Insulated Panels) is just starting to go up at the corner of Hackamore and Juniper Creek Road. This property, 4260 Hackamore, was purchase for $575,000 in July 2008 as a knock-down, though some of the foundation was saved. Next door, 4250 Hackamore just went short at $350,000 or so (it must have sold – it’s off the MLS). Another KD or a remodel? 4206 Pinto at Hackamore just sold vacant at $325,000. In any case if you drive up there, you can see what a couple of winters have done to the IHOP house, and drive by 5305 Canyon (my shamelessly plugged lot listing).
Grand Wazoo
“Carano’s at the Summit”
What is that exactly?
Grand Wazoo
Nevermind – the Italian chain restuarant, right? The artist formerly known as Cortina and now going by “Tequilia Beach” has closed up very recently at the Summit as well.
The Chocolate Bar @ the Summit was moderately busy last Friday afternoon when Mrs Wazoo and I stopped by for some adult level hydration, always important in these elevated dry climates.
Paul
Don’t get me started on the Summit. Only Reno could make such an underwhelming new development.
Justin
Paul, feel free to leave for greener pastures. I’m so sick of the Reno whiners who hate everything (and I’m not talking about the people from California). Is the Summit perfect? Nope. Is it half as bad as your statement makes it out to be? Not even close. What is it with Reno residents and their penchant for all things negative? It’s almost like they wish things to fail. This site and RGJ.com are chock full of the most negative, miserable people I can think of.
adingo8myeconomy
I’m with Paul. The Summit is one big, head-scratching wtf.
Justin
Based on what exactly? The layout?
Because from where I stand the stores are mostly desirable.
Tom
That Summit mall fulfills a need for the expanding southwest suburban area, and it will grow and fill-out as that area matures. As home shoppers in the area, we regard this mall as a plus in the region. After all, a mall is a mall, so parking convenience and neighborhood proximity become the main factors. It’s never going to be the next South Coast Plaza, but it is nonetheless a positive addition to the area. In fact, we are considering a retail space there as a new home base for my wife’s antiques and collectibles business, if we can find a house we like in the region. If in the future you read of an opening event for ~ Oh, Susanna! ~ that’s her.
Free Falling
I’m with Paul. The Summit bills itself as a “lifestyle mall” and misses the mark by a mile. For a decent lifestyle mall, the owner and architect could have visited The Grove in LA, Fashion Island in Newport, or Town Square in Las Vegas.
While the collection of stores is a definite plus for Reno, the layout is simply atrocious. There are no decent connections between the restaurants and the stores. It is ridiculous that no pedestrian walkways link the different areas. To get from the Apple Store to Starbucks you need to march straight through the giant parking lot. To get from JCrew to The Gap you need to call a taxi. The wheelchair/stroller ramps have no relationship to the entrances to the principal stores.
Instead of building a great lifestyle mall where a pedestrian can easily move between the different stores and restaurants of interest to them, the developer of The Summit has simply created Reno’s largest strip mall. It’s a missed opportunity and the original development is so flawed it will be very difficult to fix once the market for commercial justifies adding more buildings.
billddrummer
To Free Falling,
Don’t look for new buildings at Summit until 2011, at the earliest.
There’s absolutely no demand for new space at the rents Summit is charging, and spec space in a mall is lying fallow until demand returns.
Summit may evolve into a compelling concept in a few years, but I think the development fever had as much to do with the layout, store mix, and aspect of it as anything.
It’s not real pleasant shopping in rain or snow.
Corney
So it appears that Guy can take down the “Arrowcreek Gem” from the slideshow. That foreclosure isn’t going to help Arrowcreek values one bit.
BanteringBear
Mike posted:
“I see absolutely no evidence that a significant number of defaults are getting loan modifications, only adding to the shadow inventory.”
I read again today that the “Hope For Homeowners” plan, which was to help up to 500,000 borrowers rework their mortgages, has still only helped one, yes ONE, individual. It’s a complete and total failure. Now, the administration is trying to rework it in order to entice banks to participate. The bottom line is, no matter what the government does, there’s NOTHING that’s going to stop what’s coming down the pike, and that’s evidenced by these NOD numbers. Pressure on prices will continue, unabated, until the foreclosures run their course, inventory falls, and there is a rebound in employment. We’re talking years, not months.
DonC
BB – Hope for Homeowners suffered from several big problems. One was that the markets dropped so fast that the eligibility standards ended up being too high. Second was that the Bush Administration didn’t do a very good job of setting up the administrative requirements (admittedly it had a lot on its hands but during its last few months it did almost nothing). Third it was something of a victim of the transition between Bush and Obama — Bush didn’t do anything with it and Obama didn’t want to own what was essentially a carryover Bush Administration program (see the budget for another example).
You also need to keep in mind that running a government program is like turning a battleship. It takes a while to get it set up. Mortgages have taken a back seat to TARP and TALF, but that may start changing. It will also help when some more people get confirmed. Treasury is still half staffed.
Paul
Justin,
My pastures are in Reno. Born and raised here, maybe you could find another pasture to graze in. Why am I negative about the Summit? Poor layout, terrible idea to have a lifestyle center in Reno when it’s cold 5-6 months a year. Some decent stores but also some terrible stores. I was hoping for something like the Galleria in Roseville with great stores and a cool setup with food and shopping but it turned into an overgrown strip mall. We’ll see what happens in a few years with the place but as it is now I don’t go unless I have a very specific reason for going. Other stores don’t get my business like they do at the mall when I go in for a particular item. I’ll browse at the mall but not at Summit. If I’m going to Williams-Sonoma I’m not going to go to the Apple store, I’ll just drive home since it’s such a pain to get around.