Last week I took a hard-hat tour of The Palladio, Reno’s first built-from-scratch condominium project downtown. Hidden under a green tarp for many months now, what surprised me about the building were the numerous expansive windows, high ceilings and generous outdoor terrace space in almost every unit I saw. This project is right on the Riverwalk, so the water views from the south and west units are fantastic.
To keep HOA fees under control, the project went light on homeowner amenities. The deck and spa area will feature an infinity edge pool overlooking the river when complete, and of course, residents will enjoy a high-style lobby. That’s about it.
But the retail spaces below may more than make up for this. Starbucks has leased the corner unit on Sierra and First, and Mikuni, an extremely popular Sacramento sushi bar plans to occupy the back side of the building facing the river, potentially offering up to 3000 square feet of outdoor dining. Port of Subs and The Melting Pot are also looking at possible locations there.
So with the movie theaters across the street, Coldstone Creamery, Taco Del Mar, that new lounge going in and the Silver Peak Brewery all right there, plus that little art gallery turned downtown market up the street and the big new nightclub going in on Second and Sierra… pretty much this project is at the epicenter of our slowly emerging, soon-to-be-cool, new downtown.
According to the developer, the people buying here are well-to-do locals and some out-of-towners. Many plan to live there full time, while some will keep them as second homes. There are a couple of one-bedroom units available facing First Street in the mid threes, a wonderful one-bedroom with a huge private terrace on the pool level in the mid fours, and a gorgeous two bedroom with a curved wall of windows overlooking the Truckee River for $800,000 that just fell out of escrow. There are other units available as well, but these are the ones I remember.
The penthouse views are incredible, but sorry, all four are sold. The best one, at a little over 3000 square feet, went for about $1.7 million. The Montage, however, still has a few left, and the views from there are arguably more magnificent. For more info on downtown redevelopment, check out downtownmakeover.com
Price reductions = 94
Reno Ignoramus
Diane:
The new feature of the daily price reductions is great. Thanks big time for this info. I realize you can’t post every day, so if you could just update when you can, that would be super.
This info is so valuable.
238 price reductions in the last 4 days.
Myrna the Minx
I heard they have had to reduce their prices from what they were a year ago….in fact someone told me they know someone who snagged a 1 bdroom there for close to 200,000. I was surprised. I suspect that A LOT of owners will not live there full time which is a shame and I suspect that will be the case with The Montage as well. Glad to hear about the retailers though. Sushi–Yes!
Diane Cohn
RI, just to clarify… “Price Reduced” is a status in the MLS that lasts for x number of days (not sure if it’s three or five, I’ll have to check). So the daily price reduction number represents homes still in that status, not necessarily new that day. Adding them all up to get 238 doesn’t work, as some would be counted multiple times over multiple days. But watching the number rise and fall does tell us something about the market.
Myrna, I am so with you about that sushi! Mmmmmm….
Perry
Well, here’s my two cents on the condo developments. I currently live in a pretty big house. I do have kids, so I’m getting my use out of it. The idea of a condo does appeal to me as it allows a certain amount of freedom. I always had the idea that condo living meant that I’d have to put up with loud neighbors etc. but I’ve lived in a detached home for five years now and don’t find it any quieter than when I lived attached. New houses are so close to each other they may as well be joined at the wall.
I think what’s going on downtown is great. It’s obvious that our casino industry is not doing that well downtown and we are moving to a more suburban casino town. My problem with what’s going on downtown is the pricing of these properties. Do they really have to charge north of $400 per square foot to make money on these things? Part of having a vibrant downtown is to have a varied mix of residents. The $800,000 two bedroom… Perhaps I view it through the eyes of the working class Reno resident but I can wrap my mind around $500,000 for such a unit in this building but not $800,000. How many well off people really want to live in downtown Reno? Certainly there are some but enough that we can have million dollar + penthouses on every building? I don’t think so. The Montage has million dollar units spread through out the place. With the current situation it seems as though the vision for downtown is to have a bunch of well off individuals with no kids living down there. Look at the Pearl district in downtown Portland for an example of a downtown being created (priced) for all.
Here’s some info I found out. 2945 Sandestin Dr. Bailey & Dutton’s Crown Point, 3bd 3bth at 3084 square feet. This is the last home in the sub not sold. They’ve had the house around for about a year. The house was originally priced at $595,000, then $565,000, now $545,000. They will take $530,000 but not $500,000. I think they’re foolish not to jump all over the $500,000. Maybe they’re holding out for all those folks that will be house hunting this holiday season. Another builder still living in denial.
Reno Ignoramus
Perry:
Actually, if you look at the Palladio listings currently in the MLS, most of which are still owned by the builder, the prices are mostly north of $500 a sq. ft. You are right that the pricing here seems extraordinarily high. For $500 a sq. ft. you can buy in Montreaux.
If somebody buys the $800K unit you and Diane refer to with 20% down, that’s $160K. Probably no first time buyers here. Then a 30 year mortgage at 6.25% on $640,000, that’s $3,950 a month just for P & I. Add about $700 a month for taxes and you are up to $4,650 a month. And then what for the condo fee? Do you know Diane? Say, $750 a month? That puts you at $5,400 a month. If we apply traditional lending guidelines that the total payment should not exceed 39% of gross income, one would have to be making $14,000 a month. Or, $168,000 a year. Not exactly working class/middle class fare.
So your question is spot on. Who is going to buy these places?
Don’t tell me. Either people getting nothing down, I/O, neg am voodoo liar loans , or, here we go again, rich Bay Area escapees?
Here is perhaps the only segment of the market where I can conceive that it may be rich Bar Area folk. Cause’ sure as hell there are not going to be enough locals making $168,000 a year capable of paying $500/sq.ft.
NVMojo
I’d love to buy one of these places …but the prices need to become a tad bit realistic first.
We toured the studio setup at the Montage during the last river walk. $200,000. My main squeeze and I would annihilate each other in that attractive closet of a space. Price was right, size was wrong.
But who listens to the middle class anymore? The White House and Congress certainly don’t so why should Reno developers?
NVMojo
Wanted to add this, what happens to developments like this when this hits?:
snip…
“Just as the loosening of credit standards made the housing bubble go higher and last longer, the tightening of standards is going to make it deflate further and faster,” said Michael Calhoun, president of the Center for Responsible Lending, a research and advocacy group that fights predatory lenders. As borrowers find they qualify only for smaller loans, Calhoun predicted, sellers will have to cut their prices.
“There’s some pain coming,” he said, noting that California “is at ground zero on this.”
That Michael Calhoun sounds like a smart fellow. Maybe the federal regulators should hire him, or a least call him once in a while. Maybe they should have called him a couple years ago.
snip…?????
http://themessthatgreenspanmade.blogspot.com/2006/10/cruel-joke.html
gotlots
RI:
It’s actually worse than you say. The 39% guideline is for ALL expenses, including expenses such as car loans and other debts. The traditional guideline is that housing costs, such as P&I, taxes, insurance, HOA fees cannot exceed 28% of income.
That means to qualify for a $5,400 a month payment, one would have to be making $20,000 a month, or, $240,000 a year.
So, the question is: how many locals are there pulling down $240,000 a year who will want to live in what is, no matter how you spin it, essentailly an apartment?
Elaine Hirt
I wanted to let you all know…The Melting Pot will NOT be moving into the Pallido. They have moved to one building north of Romantic Sensations last weekend.
How do I know? I helped them move.
So you can scratch that retailer off the list.
Great info. Keep it coming!
Justin
Just to clarify what what stated above….
The Melting Pot World Emporium (local funiture/accessory store) will be moving into a building, just north of the ever classy Romatic Sensations.
The Melting Pot (chain fondue restaurant) will be moving into the Palladio.
Justin
Just an update on The Melting Pot (the restaurant). In this weeks Northern Nevada Business Weekly they stated that it will be located in the Magnolia Village shopping center on the corner of McCarran & Lakeside (not the Palladio). They also stated that market research determined Reno could NOT support a second location.