I showed The Montage condominium development to a new client last week. I was happy to hear how well sales have been going there this year. How well? According to a just released press release of theirs, The Montage has closed 25 sales in the last quarter and 44 sales YTD. (See The Montage leads home sales in Reno below.) The Montage is now approximately 32 percent sold.
[Update August 8, 2011 – KTVN news has picked up the story and is doing a segment on Channel 2 this evening. See Montage Selling More Downtown Condos]
FOR IMMEDIATE RELEASE – Aug. 3, 2011
The Montage leads home sales in Reno
ST Residential’s luxury high rise provides homes in resurging downtown
RENO, NV – The Montage, ST Residential’s downtown luxury residential tower, is leading the way in condominium sales in Reno with 25 closed deals in the last quarter and 44 thus far in 2011, more than any other project in Reno.
Featuring modern architecture and style in a historic building, The Montage offers unique homes that redefine urban living. The Reno community has embraced the downtown property, with 10 closings in May alone. Owners at the Montage have shown their appreciation of the building by further investing in the property.
“Our biggest compliment is the number of owners who have purchased second units or have referred their friends,” said John Tippins, regional managing director for ST Residential. “They love living in the building and enjoying all downtown Reno has to offer.”
The Montage and ST Residential are looking to give back to the community that has embraced it. In July, the property hosted an art installation as part of the Reno Artown festival. Dubbed “Tribute to Local Artists”, the installation was open to the public on July 14th and July 21st and featured works by Marcio Decker, Dianne Cheseldine and Molly Brown. The two events drew more than 200 visitors.
The installation led to increased exposure for the local artists as well as for the building. The Montage saw more than 400 visitors to the property in July, its busiest month of the year.
Located at the corner of 2nd and Sierra Streets, the Montage offers a premiere location with unique amenities such as a state-of-the-art fully equipped 3,000 square foot fitness center, half an acre of outdoor gardens, a 17,000 square foot landscaped pool terrace and a 24-hour receptionist/doorman.
In a resurgent downtown Reno that is seeing new businesses opening or preparing to open for business, The Montage offers the ideal address – footsteps from the Riverwalk with its thriving art galleries, specialty shops, restaurants, bars, taverns and coffee shops as well as the Aces Ballpark and the Truckee River Whitewater Park.
About ST Residential
ST Residential owns or has provided financing for more than 80 condominium properties throughout the U.S., including five assets in Las Vegas and one in Reno. ST’s properties in Nevada include Loft 5, The Ogden, ONE Las Vegas, Newport Lofts, Monterey at the Las Vegas Country Club and The Montage.
ST Residential leads a public-private partnership between the FDIC and a consortium of esteemed private-equity investors, and manages a nationwide condominium-construction project portfolio. Members of the private equity consortium include Starwood Capital, TPG, Perry Capital and WLR LeFrak.
By managing its portfolio with an unmatched level of detail and tailoring projects to the communities they serve, the company strives to be the standard bearer for luxury condominium projects. For more information, visit www.stresidential.com.
inclinejj
Guy,
Is FHA funding loans here? Lenders lending?
Or is the developer seller carrying back financing?
Cash sales?
DowntownmakeoverDude
They are all cash-only sales no financing available as of yet. Their press release says once the building reaches 50% financing will be available, and they are at 32% right now. However I think Fanny Mae and Freddy Mac have become much stricter regarding condo projects so while the 50% might be true for traditional loans I don’t think Fanny or Freddy will touch it with a ten foot pole.
Given the last residential pool party I went to on July 4, it’s definitely not fluff that the building is more lived in. The residents living there (I know five of them now on a good-friend basis) are a really fun crowd. In some ways you could could say it’s Reno’s ‘money crowd’ given the all-cash-sales status and that the CCR’s alone for most units exceed what my monthly mortgage payment is for my little Wells Avenue bungalow lol.
At this rate of sales the building could take another three to five years to fill up completely. However the residents already living there make an impact on downtown…the residents I don’t directly hang out with, I’m friends with quite a few on Facebook and regularly see them check into downtown restaurants and bars.
Guy Johnson
inclinejj,
At the moment all sales are “cash only”. I’m told that after they’ve sold 50% of the development they’ll be approved for financing.
Conrad
So what are these place sselling for now on a per sq. ft. basis? I have a feeling it’s a long way down from Leal’s delusional $450 a sq. ft.
DowntownmakeoverDude
Yes Conrad they are. One of the Rowhouses, originally priced at over $800,000, sold recently for $200,000-ish cash. One of the 1348 SF loft units sold for $155,782 a year ago or so, and I think those were originally in the $400K’s. I tried to search for an old Montage price list but couldn’t find one boo. Maybe someone else will have more luck. The ‘Studio+’ units are selling in the $70’s and $80’s, and I ‘think’ those were originally in the $180’s.
Mike McGonagle
Gotta agree with the Dude – at the current rate, it will take at least 3 years to absorb the Montage inventory. Here is a price list from 1/09, after Nando lost the property but before Corus tanked. I think the prices then were about 25-30% below original asking. http://montagebuyer.files.wordpress.com/2009/01/montage-price-list-jan09.pdf
Sales are purely cash at this point, unless you can coerce a hard money lender into a deal. The KTVN video mentions that financing will be available when sales reach 50% (this comment was edited out for the 6 PM broadcast) but was NOT in the Montage press release, so must have come from an off camera interview. Don’t believe it, and search for Fannie, Freddie, and FHA for their condo loan requirements to see why. Montage will NEVER qualify under the current guidelines.
I’m sort of circling around a post about downtown condos that tries to compare the PSF on similar units at Montage, Palladio, Belvedere, Sierra Vista on 4th, Arlington Tower, 280, and all the other downtown condos. Any interest? It would be a lot of work, but can do. Or is interest in in downtown so diluted that it isn’t of interest any moe?
Martin
Are the rowhouses the ones that actually open onto Sierra Street? Protected by that flimsy little gate? I can’t imagine that anybody would ever want to have their living room 10 feet away from the Sierra St. street people, “protected” by that little gate.
Also, what is the status of all those people who had put down deposits at bubble prices and then tried to get their money back? If these places are selling for what the Dude says they are, which sounds like about 60% off of what Leal’s prices were, then I would hate to have bought at peak bubble pricing.
I would be interested in your thread about the downtown condo scene Mike. It is true there has been little discourse about downtown here in a while (except when there is a shooting) but I think the info would be enlightening.
Grand Wazoo
I’d like to see that too, Mike. Thanks in advance if you decide to take it on.
Steve Herschbach
How many units are in the Montage? Hopefully they all vote. Injecting a mass of relatively monied people into the area could have a positive effect.
inclinejj
I will have to check this out the next time I am in Reno
rrb_reader
nobody has mentioned the monthly HOA fee.
Guy Johnson
rrb_reader, I believe the monthly HOA dues run $0.41/sf.