Reno Better Than Manhattan for Buyers Demanding Yield: Mortgages

That’s the headline from a recent article in the SF Gate that caught the eye of Mark Robison of Reno Rebirth.  He wrote:  “”‘405 Marsh Ave. in Reno is available.’  This was the first hit I got when googling Reno office building.” Learn more:” 405 Marsh Ave. is one of Dickson Commercial’s listings! Mark went on to talk about the Reno Commercial market: It’s about commercial real estate investors moving into smaller markets in search of higher returns. Excerpt from the SF Gate article:

Reno’s industrial market has attracted Blackstone Group LP, the largest real estate private-equity firm, because of its proximity to Northern California and other Western states within a close shipping radius. In August, affiliates of Blackstone Real Estate Partners VII bought a portfolio of industrial properties in Reno from a partnership controlled by Lehman Brothers Holdings Inc., Lehman said in an Aug. 7 statement. Blackstone paid $427 million for the portfolio, according to law firm Willkie Farr & Gallagher LLP, which represented Lehman in the transaction. Low property prices and interest rates have helped lure buyers to the market this year, said Tim Ruffin, a senior vice president at brokerage Colliers International in Reno. “It really caught us all by surprise,” Ruffin said. “We’re recovering. Businesses are doing better. Reno-area office buildings of more than 40,000 square feet (3,700 square-meters) sold for about $200 a square foot from 2005 to 2007, during the boom, and fell to $100 a square foot from 2009 to early 2012, following the economic collapse, Ruffin said. They’re now selling for $110 to $140 a square foot, less than the $180 to $200 it would cost to build them, Ruffin said.
Read the full SF Gate article HERE.]]>

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