Reno Gazette-Journal from Reno, Nevada • Page 15

DOWNTOWN CONDOS SUNDAY, OCTOBER 29, 2006 RENO 15 A lfi Hit iVit- Condo market could stay stronger than general market Brian Kaiser, research analyst for UNR's Nevada Small Business Development Center: Can we expect the same sort of price and sales declines in the condo market, particularly in downtown, as we've seen in the existing single-family home market? "The whole housing market looks like it is probably going to stay pretty cool through the middle of next year, condos included. But the one thing going for condos on the lower-end, but not necessarily the luxury condos, is that it is a more affordable price point. Just by virtue of the fact that you are able to get in at a price under what single-family homes are going for, is going to keep condos probably a little bit stronger than the housing market in general." Should the downtown condos be targeting first-time buyers with lower prices? "There is 7, 000 condo units on the books (in Reno-Sparks) coming online. I can't imagine most of them going high-end. That would be a real big surprise, because Reno is not a high-end market yet.

That's a goal, but I don't see downtown Reno, in particular, being a large-scale high-end destination. I think they are going to have a success with a few of the projects (if they are all high-end), but 1 don't know if they all will." Why are there so many second-home buyers at the Residences at Riverwalk Towers? "In general, Reno attracts a higher percentage than normal of second-home buyers given its location and proximity to Tahoe, and it is an attractive place for retirees." Is the Riverwalk's percentage of second-home buyers what we can expect to see the other condo towers to do? "As the baby boomers age, and that will be an exploding force over the next 10 years or so, I wouldn't expect those numbers to change. If anything, they may go up a little." mi 'jiT-y' I 1 DAVID B. PARKERRENO GAZETTE-JOURNAL Work is under way on The Belvedere condominium project last week at the former Sundowner hotel-casino. This photo shows the smaller tower north of the main tower, where the work has been concentrated so far.

CondosFirst sales 'promising' 1 Anita Perez, sales manager, in July showed off a model of the gourmet kitchen atthe Riverwalk Towers in downtown Reno. Perez said recently that the Riverwalk Towers has helped generate interest in downtown Reno. From 1A stock hotel-casino had closed escrow through the end of July. And the numbers could be better than that. Gary Estes, who designed and built the Riv-erwalk as president of ACE Architect and Construction, said a total of 1 14 units, or 91 percent, have now been sold at the tower since sales started in early 2005.

As a comparison, the Washoe County occupancy rate for single-family attached units, which includes condos, in the 2000 Census was 87 percent. And those numbers are a good sign for the future of condos as more and more come online, said Brian Bonnenfant, the analyst for UNR's Nevada Small Business Development Center who compiled the data from the Washoe County assessor's office. I "All in all, it looks like the first wave of condo sales downtown are somewhat promising," LIZ MARGERUM RENO GAZETTE-JOURNAL FILE Jeff Hollingsworth, vice president of economic development for the Downtown Improvement Association and vice president of Nevada State Bank: Are the high amount of sales at the Riverwalk a sign of things to come with other projects? "Because they are not inexpensive, what it has proven is their is a market acceptance for that product. 1 think it is positive, or, at least, there is nothing negative about it." How important is the success of the announced condo projects to downtown redevelopment efforts? "They are essential to bringing life to the downtown area. They are critical.

The market drives development, and this is what it is saying is the highest and best use, rather than casinos down there." erwalk she is using as a second home, said the Riverwalk Towers has helped generate interest in downtown. And Perez said it has spilled over into interest in the former Sundowner hotel-casino. "1 think it is exciting because it gives Reno residents a chance to buy a piece of downtown redevelopment," said Perez, who was the former sales manager at Riverwalk Towers. Housing Administration loans, the building cannot be filled by more than 50 percent renters. "We felt a lot better about that," Estes said.

"We came in lucky in the right window." The Riverwalk's success is important to downtown redevelopment in that it is the first of the new onslaught of downtown condos to have residents move in. Anita Perez, sales manager for The Belvedere Towers and owner of a condo at the Riv The rest are using the units as a primary residence. But the high amount of second-home buyers does not surprise Estes. "It's pretty much what we thought we would be," Estes said. "We have a lot of senior people, we have young people, we have families.

It's pretty interesting, the makeup of the people." Estes added that there are few units have been rented, a good thing, he said, because for condos to be eligible for Federal Bonnenfant said. According to the assessor's data, 72 condos, or 58 percent, have been sold to buyers with A addresses other than 200 W. Second signifying them as second-home owners. Of those, 18 condos are owned by people'in Reno-Sparks, but with a different mail address. 1 i It.

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