Some 10 months ago, Los Angeles real estate investor and developer Chaim Freeman of BF Management made a deal to purchase Reno's downtown Comstock Hotel and Casino for approximately $6 million.
The once-venerable building had fallen on hard times, bringing with it tenants, many of them transient, along with neighborhood complaints about increased criminal activity.
Freeman had a vision of transforming the downtrodden Comstock into an upscale condominium project The Residences at Riverwalk.He gathered up an investment group, the Riverwalk Development, LLC, a Nevada corporation of investors based out of Los Angeles.
And with the knowledge that another condo project just north of the Truckee River, the 12-story Palladio project,would soon be under construction he moved quickly "He wanted to get to the buyers first," says Dion George, Riverwalk Development's project manager.
George had been working for the Sparksbased design/build firm of Ace Construction.
It was Gary Estes,Ace's president; George; and architectural project supervisor Allen Biggs of Ace's sister unit, Ace Architects, who had the initial meetings with Freeman nearly a year ago.
"Chaim is a bit of a gambler," says George, "but he's also an astute businessman who makes decisions quickly."
By the end of March 2004, all of the tenants had vacated and by June 1, demolition began.
While structurally sound, the 16-story building had to be completely gutted.All electrical wiring and plumbing fixtures were removed.
The demolition crew moved more than 10,000 cubic yards of debris."We essentially gutted everything," says George.
In addition to the $6 million purchase price, Freeman and his investors put in upwards of another $12 million to $14 million on new electrical, hardware, plumbing and the amenities that he trusts will make Riverwalk an exclusive address.
Part of the increase was due to the rise in cost of construction materials steel framing studs used in the building, for example, have more than doubled in price.
But based upon an increased interest from people who have indicated they would like to purchase one of the units, Freeman's investment appears to be bearing fruit.
"We expect to be fully sold out and ready for occupancy on or about June 1," says George.
When fully sold out, The Residences at Riverwalk will have 120 studio, onebedroom and two-bedroom units ranging from 400 square feet to 1,600 square feet.
Units on the 16th floor penthouse level could include upwards of 2,300 square feet in floor space.
Each unit has nine-foot ceilings and 90 percent of the units also have eight-foot balconies with entry from sliding glass doors.
Although actual prices for the units have not yet been established, estimates are that the studios will begin around $100,000.
The oneand two-bedroom units will likely see a range from $130,000 upwards to $450,000, depending upon the view, floor level and other amenities.
Penthouse level units could command significantly more, especially those with a western exposure and a full view of the Truckee River as it flows through downtown Reno.
"We will probably price everything within a week or two," says George.
So far, the company has done done zero advertising.
But sales agents, hired to represent Riverwalk exclusively, are at the ready.
The developer is predicting an easy sale.
"People want to be downtown where the restaurants and the entertainment are," says George."More than that, this will be a significant catalyst to spur further upscale growth and development downtown, and the City of Reno likes that."
Freeman also plans to incorporate commercial and retail businesses on the ground floor of the former casino, though as of now, no leases have been signed with prospective occupants.
"We know there is interest," says George, "but it's like large, big-box retailers who wait until they see lots of rooftops before they move into new, larger residential areas.We believe businesses are waiting to see us sell out Riverwalk condominiums before they commit."
George says the firm anticipates an owner mix of young people, professional people and semi-retired and retired people.
