The Mikes at the Montage

 Believe it or not, I had never been in the Montage until 2 weeks ago, though I have been on their interest list almost since the beginning.  Mike at downtownmakeover set up a tour for us with Scot and Vinnie, a pair of the original contract holders who stayed the course and closed on their unit.  They were not only able to upgrade their original 8th floor unit to the the upper reaches of the building during the closing process, but have heavily invested and customized their unit since.  I had one of my white knuckle moments when I tried to go out on their deck and failed big time – I had a death grip on the building’s structure and went into flop sweats.  Go figure.  If you read Reno Magazine this month, this is the unit profiled there.

So here are some impressions based on my tour:

–   The current resident are really, really happy living there.  On my tour, we met up with three other owners touring friends though the  project.  A couple others were on there way to Aces games.  There was a lot of hugging.

–  The lobby is spectacular, and has a lot of really nice design features.   The planter ledge that becomes a seating perch is a nice detail.

–  The pool deck is beautiful and amazingly quiet for being in a downtown location.  None of the Terrace Townhomes that face the pool are occupied yet, and that may change the feel in the future.  I think those residents will end up installing a lot of planting to screen them from the pool area activity.

–  There are some details that need to evolve with the project.  The resident’s club overlooking the pool (spectacular furniture and amenities) needs a little more warmth.  The color scheme in the fully equipped gym needs to be warmed up (but the gym is fully equipped with high end machines).

– The white window frames are a jarring error.  Originally, frames were a gun metal or raw aluminum finish and were much softer and blended in better with the surface finishes.  Go look at the original sales office on 2nd Street to see how much better gray would have looked.

–  The tenant corridors bug me.  They are very industrial, with cable racks to maximize ceiling heights, which are only about 8".  The sconce lighting at each tenant entrance are cold and a bit glarey.  You sort of feel that you are in a remodeled hotel or something (irony).

–  Inside the units, the fit and finish are first class.  It is interesting that my hosts gutted the bathroom, and kept the one detail I hated – the 2" deep sink.  The unit I toured was a 1 bedroom, so the 8′ ceiling felt OK.  It might feel compressing in a larger unit.

In the back of my mind, I have to wonder it renovating the Golden Phoenix into the Montage was wise versus a tear-down and new construction.  The 8′ ceiling issue is something that can’t be mitigated.  Unit plans had to adapt to the existing structure, so there are built in inefficiencies.  If you had a few hundred mullion dollars to spend on a project, is the Montage as it is what you would have come up with, or should it have been something better?

Recent sales have been in the $120 psf range with a $.42 psf per month HOA dues (covers maintenance, garbage, water, structural insurance)..  I can’t really make a case that even at this level, the Montage makes sense as an investment, based on rent to own calculations.  It is an appreciation play right now.

If I had cash, I’d be buying at the Montage these days if the appropriate unit came up.  That may explain why I am currently un/under employed and looking for handicapped restrooms to remodel as an upside. 

10 comments

  1. sleezy

    “If I had cash, I’d be buying at the Montage these days if the appropriate unit came up.”

    Really? LOL

  2. DonC

    It would be hard to play the appreciation game since that seems to be the game that Starwood Capital, the private equity firm that holds the Corus properties, wants to play. So long as this is their game plan probably not great deals to be had on any of the properties it owns:

    http://www.nytimes.com/2010/05/30/business/30barry.html?scp=2&sq=corus&st=cse

    At some point Starwood may decide to capitulate. Then might be a good time to buy if you were looking for appreciation. IMHO of course.

  3. sleezy

    I agree DonC. I just don’t see ANY appreciation with these units..
    whatever appreciation we might see will all but be washed out just by the Property taxes, and HOA fees on these special little places….

  4. Steve Watts

    I toured a few weeks ago and disagree that the fit and finish are “first class.” Some wood steps, in the model at least, are full plank, while others are just wood strips cobbled together. The vacant space at ground level looks terrible and should be spruced up a bit. And you can see the white window frames are already rusting from Sierra St.
    Anyone considering buying at the Montage really should stand outside at midnight on a weekend night…the gang atmosphere coming out of 2nd St. Bar and Tonic is pretty alarming. I still say its overpriced by quite a bit.

  5. darnold

    Come on Sleezy. Tell us what you really think.Does anyone know how many of the Montage units have closed in the past couple of months?

  6. sleezy

    I did tell you what I REALLY think.. The Montage has NO value IMO. further, given the high property taxes and horrible HOA dues.. anyone that plans to rent them out better find a dr. or a lawyer willing to shell out $2k/month for a 1 bedroom 1 bath..

    however, It’s nice to know the people that live there are really happy. I hope they intend on staying for the next 50 years .. lol

  7. billddrummer

    To sleezy,

    Don’t be silly. Every building in Reno has some value.

    Whether that value has any relationship to the cost of putting up the building is open to interpretation.

    Land, on the other hand, looks worthless from here.

  8. sleezy

    billdrummer

    These condos would have to appreciate at the minimum 6% a year (not happening) every year just for the owner to be break even..

    I’m sure the montage DOES have some value.. perhaps if they were $50 sqft…

  9. sleezy

    MIKE

    Where can we find more information on pricing?

  10. mdarnold

    Talk to the salesman Ron at the Montage. He has prices and seems to be selling some.

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