Northern Nevada Real Estate

Volume 2,Issue 2

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COMMERCIAL | INDUSTRIAL | RETAIL | LAND | OFFICEMonday, July 27, 2015 | www.nnbw.com

Medical players added to froth in Q2 office market

Apartments on track as hot investments

Carson Valley food businesses find right fit in industrial park

By Steve Sinovicssinovic@nnbw.biz

The end of the second quarter of the year means its time to take the measure of Renos office market. Checking in with Tim Ruffin and Melissa Molyneaux, the office team at Colliers International, the duo shared a couple of takeaways as they calculated the level of leasing activity and sales.

One big dealmaker: Renown Health. Reno had just the right prescription that the healthcare provider sought in a new home and additional office space. The operator of hospitals and other healthcare facilities purchased the Reno Tahoe Tech Center at 10315 Professional Circle Drive.

Ruffin said Renown picked up the South Meadows property for $11 million, which he said was a notable transaction for the quarter. He said the 63,000-square-foot building has been considered distressed by virtue of its low vacancy.

The freeway frontage is outstanding, said Ruffin, who said Renown plans to make the building a strong focal point of its Hometown Health insurance arm.

In addition to acquiring the property in South Reno, Renown has also taken over 16,000 square feet of space at 50 W. Liberty. Ruffin said Renown plans to office some of its administrative staff downtown.

Not to be outdone, St. Marys Regional Medical Center will take on the former Scolaris grocery store and is in the market to co-lease space with UNR for the medical schools residency program, Molyneaux said.

Another healthcare business called AeroCare leased the old AT&T data center at 1450 Vassar Street, which will be a call center. The nearly 30,000-square-footbuilding has significant up-to-date IT infrastructure capacity and has been well-maintained, said Molyneaux, although it had a few dated and quirky features, such as old telephone booths in the lobby. The new tenant plans some improvements before taking occupancy.

The increases left the overall office vacancy rate flat for the quarter at 15.7 percent, which is just a nudge down from the previous quarters 16.2 percent, according to the Colliers team.

The slow, steady upward pace of leasing will continue in the third quarter, said Ruffin.

Two things: the nicest Class A buildings are filling up and the market for the most part still cant justify new (office building) construction as in past years.

One exception is the Kietzke Lane corridor, where Ruffin said some significant construction development is underway.

continued on page 9

By Sally Robertssroberts@nnbw.biz

The sale and opening of multifamily properties slowed to a brisk trot after performing at a gallop early in the year.

The market pace is expected to pick up speed during the remainder of the year, but new apartment construction could trail far behind the need.

Floyd Rowley, senior vice president, investments of the Johnson Group, sees the current period of normalcy as the drawback of ocean water before the arrival of a tsunami in terms of job growth crashing into housing availability.

Unless we build a ton of houses, Im not sure where everyone will live, Rowley said.

During the recession, C-class apartments were 40-50 percent full. Now they are 80-90 percent full.

Even with the potential of 6,200 new apartments entering the market in the next couple years, it may not be enough.

At the Northern Nevada Housing Summit in early July, Mike Kazmierski, president and CEO of the

Economic Development Authority of Western Nevada, predicted the region could expect 52,400 new jobs and a population growth of 64,700, conservatively.

We have a housing crisis, Kazmierski told the gathering hosted by Governor Sandoval. We should be building, not 200 homes, but more like 2,000 homes.

For investors, prospects for multifamily complexes in the Reno/Sparks metro area look like winning bets.

Reno is definitely on the map among investors, said Aiman Noursoultanova, senior vice president investment properties at CBRE.

Thats really exciting for us in the business.

In the first quarter of 2015, 939 multifamily units changed hands, according to figures released by CBRE.

continued on page 8

By Susan Ditz

The desire for more handmade, locally sourced, healthy and environmentally friendly food products has resulted in a growing opportunity for culinary entrepreneurs in northern Nevada.

Small companies are springing up all over the region. However, artisan food developers who want to live and work in the Carson Valley face a big challenge finding the right space to create their distinctive small-batch products.

Health regulations can require daunting and expensive property upgrades to ensure food safety. For most the solution is leasing industrial space where the necessary improvements such as walk-in refrigeration and special drainage, are already in place. But that kind of property isnt always easy to find at a price point a food entrepreneur can afford.

Industrial parks in Minden and Gardnerville are currently home to everything from churches to thrift stores to auto repair shops, manufacturing and distribution centers. Its an appealing area, especially for smaller mom and pop shops, because the quality of life is so great in the region, according to local agent Dick Silvera, who has run his commercial real estate business in Gardnerville for 20 years.

But we are running out of industrial space, he says. Following the recession, rents have not come back to where they were, so no new space is being built, and we are in dire need, especially for buildings of 20,000 square feet or larger.

Therefore, due to limited options, small food production operations in the area he says only make up, about 2-3 percent of the total tenant population. Even though the average 55 cents per square foot price tag (plus CAMs of 10-12 cents) is higher than comparable space in the Reno area where there is more inventory, he gets regular inquiries from food entrepreneurs who want to get established in the Minden/Gardnerville area.

One of the real local success stories is Killer Salsa in Gardnerville, which received the Entrepreneur of the year Pioneer Award in 2013 from the Northern Nevada Development Authority and offers a line of nine fresh, cooked and dehydrated products now available online at www.killersalsa.com, through

continued on page 9

Plans are underway by LandCap Development to transform the hotel portion of the former Silver Club/Bourbon Square casino on Victorian Square in Sparks into a 98-unit apartment building. Sally Roberts/NNBW

2 | Northern Nevada Real Estate Journal | Monday, July 27, 2015 | www.nnbw.com

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Retail markets are moving in the right directionBy Anne Knowles

Shopping season is in full swing again in northern Nevada. Economic indicators for the areas retail market are all moving in the right direction, continuing a positive trend that started last year. Vacancy rates, for example, are down while net absorption is up and lease rates are finally on the rise after stagnating for years. Vacancy rates are down to 13.5 percent overall, the best theyve been since 2009, before things started really crashing, said Roxanne Stevenson, senior vice president, Colliers International in Reno. For the first time in a long time asking rents have increased, to about $1.27 per square foot. And net absorption was about 62,000 square feet in the first half of the year. Another commercial broker in Reno, CBRE, has slightly different numbers. According to Shawn Smith, vice president, vacancy rates are down to 14.3 percent, net absorption in the first half was 81,886 square feet, including 11,000 square feet of new construction at the Legends in Sparks, and the average lease rate stands at $1.22 triple net. Also, fewer than 20 vacant big box stores remain on the market. Both agree, though, the news is good. Reno is the buzz right now. We are back on the radar screen, said Smith. National chains and franchises are both looking. That includes a major sporting goods retailer expected to lease 50,000 square feet in the Meadowood Mall, which has been delayed by building height restrictions in the area due

to its proximity to the Reno Tahoe International Airport, according to Smith. A Sleep Number, the national mattress store, is being built on the northeast corner of South Virginia Street and Neil Road, in the lot where Joes Diner recently stood. A second space in the building is currently being marketed, Stevenson said. A few national retailers have been touring the area and looking at options, she said. A couple are brands within brands, a new name to our market but under the umbrella of another brand. Bernie Carter said he has a letter of intent from a national retailer new to the Reno market for the 15,000 square-foot, first floor of the converted downtown post office. The local developer expects the retailer to open its doors sometime in 2016. Some shops in the historic buildings basement are already or soon will open for business, including a florist, barber shop and chocolatier. Four of five of Carters Midtown retail projects are fully leased, including

two restaurants, Two Chicks and Sp, a new yoga center and a bed and bath supply store. Carter said he has two, 1,200 square-foot spaces open in the popular Midtown location. Another Midtown project is being rebranded. Blake Smiths multi-use project initially known as The Cove is now called 1401 Midtown, for the South Virginia Street address of the Heritage Bank building that forms the core of the plan. Smith is turning the 9,000 square-foot building into a 21,000 square-foot mix of residential, office and retail space. About 3,000 square feet will be apartments, with eight single-family homes added in the back. About 12,400 square feet of 17,200 square feet of commercial space is already leased to three future tenants and another 2,000 square feet has a letter of intent. Smith is building out about 2,900 square feet on spec for a restaurant. Smith also recently purchased a 3,300 square-foot building with 20

parking spaces at Lake and Second streets, near the Reno Aces baseball stadium, which he plans to lease to retailers and a restaurant. Carter and Smith are well-known local developers, but much of the recent action in the retail market has come from outside investors, another good sign. CBREs Smith says 80 percent of recent retail property purchases, such as the Scolaris building in the Southwest Pavilion, were made by outside investors. Most are from California where product inventory and cap rates the ratio of net operating income to property asset value are tight. For instance, Jim Kaplan, an Incline Village resident who previously invested back east, made his foray into the Reno market when he recently purchased The Crossing shopping mall at the busy, southwest corner of South Virginia Street and Neil Road. Since then, he has leased to three new tenants Ocean Spa and Nails, Custom Apparel Ink and Bear Bums, the citys only cloth diaper service. Kaplan is in the process of upgrading the sites landscaping, signage and building facades, and has three more, 750 square-foot spaces for lease. Our occupancy rate has gone up from 70 percent to 90 percent, said Kaplan, who is manager of The Crossing SC LLC, which owns the property. Its a great location, a hidden gem thats not been utilized to its fullest potential.

The Summit in south Reno at Mount Rose Highway and South Virginia Street has recently added new tenants, including lulumon athletica and Miguels Mexican restaurant. Photo courtesy The Summit.

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4 | Northern Nevada Real Estate Journal | Monday, July 27, 2015 | www.nnbw.com

Spec construction of office space slated for Kietzke corridor

A simple lease renewal may not be that simple

By Justin Noin

The northern Nevada office market has not seen any new development exceeding 10,000 square feet in nearly a decade. What has been built has been build-to-suit product with tenants already in place before dirt is moved. Speculative construction in the office market has been halted for some time. In fact, northern Nevada has not seen a spec office project since 2008. Between 2006 and 2010, the market experienced a steady increase in vacancy rates. From 2010 through most of 2012, lease rates continued to drop. Developers could not construct a building and lease it for the costs of development. The result was that tenants were limited to pre-existing buildings, though rents were lower. While vacancy rates began to drop in 2010, lease rates did not see an increase until nearly the end of 2012. Now that we are past one of the most significant economic downturns in our history, lease rates have begun to approach the level to warrant new construction. Tenants are going to begin to see more options as demand continues to grow and ground up projects are now feasible for developers and tenants alike. As always, some submarkets in the area are stronger than others and

spec building is beginning to pencil for property owners and investors. The Kietzke corridor has continued to be one of the most dominant submarkets for office users. This area continues to have lower vacancy rates over time in good market conditions and not so good market conditions. In fact, plans are moving forward on the first speculative office product to be built in northern Nevada in more than seven years in the Mountain View Corporate Center. The center is located past the roundabout at the south end of Kietzke Lane. The site has freeway visibility, the space to accommodate needed parking and the surrounding

buildings (all Class A) are some of the best quality in the market. McKenzie Properties will break ground late summer on a 40,000-square-foot speculative office building on the 5.5-acre parcel next to the City National Bank building. This area will remain one of the most desirable submarkets in town and we believe there will be significant tenant demand in Mountain View Corporate. The new Class A building is scheduled to be complete in July of 2016. It will be four stories with a view of Evans Creek and the surrounding mountains. Finishes will reflect the same high quality as the surrounding product.

Not only can we expect to see more and more additions to the inventory in the office market, it is truly a market signifier to see speculative development begin. Confidence in the northern Nevada commercial real estate market is higher than it has been in a decade and the result will be more and more movement and construction in 2015 and 2016.

Justin Noin is a property asset manager with McKenzie Properties, a third-generation, northern Nevada developer and construction company. For more information, visit www.mckenzieproperties.com.

By Tom MIller

For tenants of industrial and commercial property, a lease renewal is almost a certainty at one point or another. From a tenants perspective, if the space is working well and the landlord and leasing agent are making it easy, whats the harm in simply signing the renewal and getting back to business? Thats certainly one way of handling things and it may even have its virtues. Signing the renewal gets it off your desk so you can focus on your business. But there are a few critical aspects to the simple lease renewal that are worth considering first. To begin, be very clear about who is working for whom in this process. The landlord has specific goals for his real estate asset and achieving a certain yield hurdle for his investment is certainly one of them. The landlord strives to secure both the highest rental rate and high annual rent increases while minimizing his outlay of resources to achieve those goals. The tenants interests are all on the opposite side of the negotiating sheet the lowest possible rent, the lowest annual rent increases and possible improvements to the space at landlord cost. You can try to negotiate these points with the landlords agent on your own, but understand that the landlords agent and the landlord both spend all day,

every day dealing with lease transactions in the local market. How much lease negotiating experience do you as the tenant bring to the table? This is precisely where the benefit of an agent who solely represents your interests becomes clear. Even if you know and like the landlords agent, never forget whom he or she represents and remember that it isnt you. One agent can legally represent both the tenant and the landlord with the execution of a special document that acknowledges both parties are aware of and agreeable to this unique arrangement. Its similar to having one lawyer representing both the prosecution and the defense in the same case. Consider how effective one agent can be trying to serve two clients with opposing interests. Perspective can also be valuable in this process. Dont simply view it as a renewal. The prudent tenant considers it an opportunity for renegotiation, or at the very least, a chance to review the details of the agreement. From this standpoint, bringing in a specialist is a sensible move. Whats more, by delegating this important

item to a competent experienced professional, youre free to run your business, secure in the knowledge that the process will progress rapidly with your interests skillfully represented. Your agent will ask questions and be very clear about your short, mid and long-term business models with attention to

growth, potential downsizing or any other special needs now and in the future. Your agent will perform a detailed lease review and produce a written abstract outlining the critical business points in the lease and all amendments. The agent will review previously negotiated terms that may now be dated, as well as anything that would benefit from updates, revisions or eliminations. For example, hell look over any tenant improvement costs amortized into the initial lease rate that may need adjusting or eliminating. Just a focus to this detail alone can have a significant impact, so as a tenant, its wise to honestly consider whether or not one has the ability to conduct a review like this solo. Another important and obvious consideration is lease

rates. An agent can track a tenants current rate in comparison to market rents over the same time period. As the market has experienced wild pricing swings in the last six years, current input on todays rates is a necessity during renegotiations. An agent can supply statistical facts, not approximations, of relevant comparable transactions, including all the fine points that bring the comparable lease rates into sharp focus. Market facts should also be brought into the equation. An agent can produce specific submarket vacancy and absorption numbers that are clear and accurate indicators of what a given property type, size and submarket is experiencing today. These data points are essential for setting a realistic price/terms hurdle to shoot for on a renewal. An agent also brings a credibility factor to the renewal process. When an agent represents the tenant, the landlord understands that the renewal will need to be a market renewal to gain support from your agent. In short, an agent provides a free, professional and timely service from which any tenant will benefit even for a simple lease renewal.

Tom Miller is the president of Miller Industrial Properties, one of northern Nevadas leading industrial real estate brokerage firms.

McKenzie Properties plans development on this lot at the south end of Kietzke.

Courtesy McKenzie Properties

Tom Miller

Northern Nevada Real Estate Journal | Monday, July 27, 2015 | www.nnbw.com | 5

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6 | Northern Nevada Real Estate Journal | Monday, July 27, 2015 | www.nnbw.com

Despite hurdles, retail growth underway in MidtownBy Ian Cochran, CCIMand Greg Ruzzine

If youve spent any time in the Reno-Sparks area in the past two years, you may be familiar with the Midtown District just south of downtown Reno between California Avenue and Plumb Lane. Even more noticeable are the changes that the district has seen over the past few years, consistently improving and expanding. We have had the good fortune to be part of this amazing growth of this area over the past several years.

At the inception of the Midtown District, we clearly remember several skeptics questioning whether this idea would really take ight. With developers such as Bernie Carter, Dark Horse Investments and Thomas Y. Johnson of TY Johnson Investments leading the charge, the transformation of the Midtown District into the hippest new area of town has been exponential.

With a healthier local economy and a clear vision for the Midtown District, tenants and investors alike are ocking to the area eager to find their place in this ourishing market. For tenants, there are several excellent options such as the 777 Center Street project.

Many may identify the 777 Center Street project as the former Maytan Music Center. To some, this building was a Reno landmark.Nearly everyone who has grown up in the area may have gotten their first trumpet, trombone, piano or musical instrument from the Maytan Music Center.

Owner Thomas Y. Johnson has taken special notice to this fact and has worked hard to preserve some of the history of the Maytan family during a complete renovation.

On the north side of the building, you will find a mural of children playing various instruments which Johnson is currently restoring as a remembrance of the Maytan legacy for all to enjoy.

Aside from this mural, you wont recognize this property due to its modern new design and elegant lighting. With the building nearing completion, Johnson has worked to secure several restaurants and retail tenants and is eager to see the project come alive.

From an investors perspective, there arent nearly as many options as there are for tenants looking to root themselves in the Midtown area.

Local Sperry Van Ness ofces are currently working with several investors who are eager to acquire property in the area.

Regardless of property type or location, slim available inventory and the lack of sellers have made the barrier to entry difficult. Due to the age of the properties located in the Midtown District, most have been owned for several generations by the same entity and have produced a steady income stream for their owners.

The challenge has been attempting to match the owners perceived value to the current market value of the property. In addition, there are a handful of retail properties in Midtown that would need significant renovations in order to compete with new developments such as Sticks at Midtown or 777 Center Street.

When you combine the rehab costs with the owners perceived value of the property, more times than not, the hurdle is too great for either party to overcome. We foresee the value of these properties lining up at some point in the near future.

Dark Horse Investments is one of the newest investors in the market,

securing two properties in Midtown.One of their projects they will soon

begin renovations on is 1039 S. Virginia Street. They strive for a product similar to Sticks at Midtown and 777 Center Street with a mix of retail and ofce tenants.

One of their rst tasks will be stripping the white paint from the front of the building and restoring the original brick. Upon its completion, this project will surely be a highly desired property for tenants looking to be in the Midtown area.

Average asking lease rates in the Midtown District for existing second generation retail spaces are between $1 and $1.25 per square foot based on upon triple net lease terms.

With a triple net lease, the tenant is also responsible for the proportionate share of all operating expenses associated with the property.

Lease rates for new construction such as Sticks at Midtown or 777 Center Street are between $1.65 and $1.85 per square foot based upon triple net lease terms. Lease rates also vary based upon size, location and build out.

With the improving health of the Reno economy, we believe it is safe to assume that the growth and development of the Midtown District will only continue to accelerate.

If you have yet to experience the Midtown District first hand, we encourage you to take an afternoon or evening and explore the area. You can stop in at Chuys Mexican Kitchen and enjoy a specialty margarita, sit down at Midtown Eats for a delectable burger or head to the patio at Death & Taxes and enjoy an upscale craft cocktail that will blow your mind. Whichever you choose, this fantastic area of town will leave you coming back for more.

Cochran and Ruzzine are brokers with the Sperry Van Ness Gold Dust Commercial Associates.

Greg Ruzzine (left) and Ian Cochran are working with clients eager to do business in Midtown.

The 777 building, the former Maytan Music Center, is getting a multimillion dollar

makeover. A before shot shows the building prior to remodeling, along with

recent construction photo and an artists rendering of the completed project.

Courtesy photos

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Northern Nevada Real Estate Journal | Monday, July 27, 2015 | www.nnbw.com | 7

Commercial developer sees the big picturePanattonis Doug Roberts continues to make his mark on the regions commercial real estate landscape

NNBW Staff

He has developed and built some of the most significant office and commercial real estate projects in this market. He has developed more than 3.5 million square feet here in northern Nevada for tenants such as Jarden, Trex, Petco, Urban Outfitters, Bally Technologies and many more. His company is completing work on the new Petco distribution center this month and has broken ground on the largest speculative project ever to be built in northern Nevada. The first phase of that project, called North Valley Commerce Center, is a 707,000-square-foot cross dock building scheduled for completion around the end of the year. Named one of the Developers of the Decade at the recent 10th annual Summit Awards, Doug Roberts of Panattoni Development has seen the region grow and transform. Now, at the forefront of northern Nevadas economic recovery, he is making his mark on the landscape of our community more than ever. I believe companies will continue to look to Nevada as California continues to have a challenging business environment and we are developing property both in response and anticipation of that need, said Roberts. We have a comparatively lower cost of living, low taxes and business-friendly regulations. In addition to California companies looking to move east, companies throughout the country see Nevada, and specifically Reno, an ideal location from where they can distribute their goods throughout the western United States. Those factors have made this region attractive to real estate investors as well. A partner with Panattoni with more than 25 years of experience in real estate, Roberts oversees development in Reno, Las Vegas and Arizona for the company. With more than 3.2 million square feet of new development planned this year in Nevada alone, Roberts makes it his business to understand the intricacies and hopefully the direction of each market. The northern Nevada market has seen extreme highs and extreme lows in the past decade, said Roberts. We are seeing values of existing properties rise and new projects start to come out of the ground, which is a great change of pace from recent years. The North Valley Commerce Center is a prime example.

The hope is that the growth is sustainable and that what we are doing contributes to the economic recovery of northern Nevada, said Roberts. We have all experienced the alternative during the economic downtown in 2008 so we are focused on sound fundamentals. Roberts is responsible for all aspects of the development of office, industrial and retail projects as well as the supervision of staff and personnel. He actively oversees development managers, during preliminary and ongoing stages of the budget and throughout the construction process. He takes pride in taking on each projects unique set of challenges to create an end product that is cost-effective, functional and attractive to tenants and prospective buyers. It is rewarding to find a location with great potential and turn it into a product that fits the needs of a company, said Roberts. I enjoy building lasting structures that will serve their current and future users well over time. Roberts calls northern Nevada home, where he lives with his wife and children. His investment in the community does not stop at land. He is active in several key professional organizations in an ongoing effort to advance his skills and the industry as a whole. Roberts is the current president of the Northern Nevada Chapter of the National Association of Industrial and Office Properties (NAIOP) and an associate member of the Society of Industrial and Office Realtors (SIOR), Nevada Development Authority (NDA), the Economic Development Authority

of Western Nevada (EDAWN), Commercial Real Estate Women (CREW) and Certified Commercial Investment Member (CCIM). In addition to his professional affiliations, Roberts is a current member and the past president of the Reno Central Rotary and a founding board member of the Keaton Raphael Memorial (now known as the Northern Nevada Childrens Cancer Foundation), an organization assisting families with children battling pediatric cancer. My wife and I saw a need for programs and services for families in the fight here in Northern Nevada through some friends who were

affected, said Roberts. We have been working along with the rest of the board on serving those needs for over a decade now. If market conditions continue to improve as we all hope they do, you can expect to see more and more activity from Panattoni as well as other developers, said Roberts. I am looking forward to the advancement and growth we are anticipating in the years to come.

Officials break ground in October on the new Petco Distribution Center

in North Valleys, constructed by Panattoni Development.

Courtesy Panattoni Development

Doug Roberts, a partner with Panattoni Development, speaks to guests at the Petco groundbreaking. Courtesy Panattoni Development

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Northern Nevada Business Weekly is pleased to provide an opportunity to showcase your firm to 10,000 business leaders.

Business Law is scheduled for publication by Northern Nevada Business Weekly on September 14. The content of this glossy magazine covers a variety of legal issues faced by business owners and managers.

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To advertise, contact your sales representative today.

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775.850.2283wohara@nnbw.biz

5355 Kietzke Lane Ste. 100 Reno, NV 89511

Apartments continued from p1

Preliminary data indicate only 634 units sold in the second quarter. One significant sale in the second quarter was the 184 Caviata complex at Kiley Ranch in Sparks. Oakmont Properties Caviata LLC., of San Rafael, Calif., purchased the complex in May for $33.8 million. With numerous transactions in the works, the pace is about to pick up substantially. Two large communities are headed for auction in the coming months: The Village at Iron Blossom, with 404 units, and Viscaya Hilltop Apartments, with 318 units. The sales of three additional complexes 300 units, 200 units and 256 units are pending. A good chunk are pending for the third quarter, Noursoultanova said. Up in the air for the near term are Lakeridge East and Lakeridge West. Both have been embroiled in separate foreclosure processes for a few years, Rowley said. Thank God were running out and the country is running out of foreclosed properties, he said. The asking price for multifamily properties is trending up in the region. In May, the median price per unit for multifamily properties was $75,016.66 in the Reno metro area, according to loopnet.com. Thats up 6.7 percent compared to three months prior and up 41.6 percent compared to May 2014. The pace of construction is also gaining ground.

Several projects are under construction and others are in various stages of planning, with a potential increase of 3,558 units to be added to the market in the next couple years. Other developments in the very early stages could put that at 6,200 or more. It takes about two years to move a project from the planning stage to completion, Noursoultanova said. Residents began moving into the Edge Water at Virginia Lake, a Silverwing development, in July. Completion of all 288 apartments and condominiums is expected by this time next year. Kromer Investments expects the 288 units in the Villas at Keystone Canyon Phase I to be completed by the end the year. Even as that project finishes, Kromer is planning Phase II with 120 additional units. Entering Phase II of construction are the Bungalows at Sky Vista with completion of the 158 standalone bungalows expected in October The Village at Arrow Creek, a Ryder Home development in South Reno, will bring online another 120 units in January 2016. We have a staggered delivery, of apartment units going online, Noursoultanova said. Theyre not all at once hitting the market, she said. Were fortunate its happening in a disciplined market. Currently, planned apartment complexes are focused on A-Class, which provide a higher return on investments for contractors.

Hopefully a group of developers will focus on workforce apartments, Rowley said. Apartments in the area that are 15-20 years old and still considered Class-A because of location and maintenance will have a hard time keeping up with new Class-A apartments, he said. Multifamily development activity in Sparks is especially active. Expect an estimated 1,238 new units to hit the market in the next couple years. Thats not surprising when you consider that Sparks is the city closest to the Tahoe Reno Industrial Complex where thousands of new jobs are expected to open up when the new Tesla gigafactory plant, Panasonic

offices, Switch fiberoptic complex, and others open for business beginning next year. LandCap Development plans to redevelop the former Silver Club/Bourbon Square casino/hotel on Victorian Square in Sparks into a 98-unit apartment building. The company also is in the early planning stage for a 920-unit complex adjacent to the Legends Outlet in Sparks and to convert a parking garage at the Sparks Marina into 220 apartments. Its an exciting time to be in northern Nevada, Rowley said. Unlike the last big boom, which was a one-trick pony (due to the limited economic diversity), this one seems to be very broad based.

8 | Northern Nevada Real Estate Journal | Monday, July 27, 2015 | www.nnbw.com

The Tesla effect on the investment market in the regionBy Tom Fennell

The national and regional news of Telsa and other viable companies relocating to the area is creating an interesting market dynamic for commercial investment property in northern Nevada. Prior to the Tesla announcement and during the throes of a nasty recession, we saw discounted pricing and higher capitalization rates than we are seeing today. Is this created by the Tesla effect, a healthy economy, or a combination of both? During the recession, Reno and other tertiary markets similar to our demographic were viewed as risky markets to invest in real estate in comparison to major markets. As is typical during economic recovery, the major metropolitan areas around the country were the first markets to see recovery in leasing, development and investment activity. Nationwide investment volume was up almost 40 percent in the first quarter of 2015. But as the national economy has come back, the ability to achieve desired returns has gotten more competitive in major metropolitan areas and real estate prices have increased dramatically. This has caused national or regional developers, investors, and landlords to look at smaller markets for higher yield opportunities. Another factor in the increased investment demand has been historically low interest rates for an extended period of time. The Fed has maintained a stance of keeping interest rates low, which helps investors and users of commercial real estate leverage to a higher price point in their search for their real estate purchases as a result of lower borrowing costs.

Analysts have kept saying interest rates are going to go up for years, however after the latest Federal Reserve meeting, the Fed said they may not have any increases until December and even then a potential increase will be incremental. Combining the Tesla announcement with uptick in our local economy, and we now have serious interest on investment demand, such as in the following categories.

Apartments and industrial Investment in commercial real estate was certainly not at a standstill during the recession in northern Nevada. There were active investors in our market that were able to acquire assets well below replacement value. The most sought after asset classes for investment in our region have been apartments and industrial. Those two sectors were the better performers during the recession as compared to office, retail and land. Apartments and industrial have long had the lowest vacancies in our area and have been the first assets to see cap rates compressing. Apartments have also had the most flexible lending terms as banking institutions saw the multifamily market as one of the safest. This ties back into low borrowing costs and has added to the competition of the apartment market. Low interest rates, more favorable terms from banks as compared with other sectors and good indicators (low vacancy, high demand) has brought a highly competitive mentality

into our apartment market as compared with some of the other asset classes. Can apartments in our market still be a good investment? Absolutely! But finding quality product and desired yields is, and will continue to be, very challenging. Industrial is seeing some of the same trends with institutional buyers completing large transactions in the

market. Another factor in our industrial market is that the majority of market is controlled by institutional owners that have a tendency to pursue large dispositions, so the number of true investment transactions for a one off product can be limited. In comparison, apartment transactions involve more regional and local owner/operators.

Office and retail The cap rate compression we are seeing in the apartment and industrial markets has caused investors to consider other asset classes such as office and retail. Demand for investment deals also causes investors looking for quality, low risk deals to adjust their expectations of returns, furthering interest into other areas. As prices go up, yields go down and as product is limited in traditionally sought after assets classes and areas, investors are increasingly looking more at value added scenarios than in previous years in our region, which is driving renewed interest in the office and retail markets. According to the 2015 Pension Real Estate Association Investment Survey, 77

percent of investors who responded said they expect to buy value added investments in the U.S. this year. What is the downside in all of this investment demand and growth? Due to reported increases in future job growth and the Tesla effect, owners have a perceived value in their real estate holdings that is far exceeding normal valuations. Rental rates are a key component in valuing and underwriting commercial real estate, and we havent seen the economics of our commercial rents change enough to warrant the inflated expectations of value. From an investor standpoint, if you are buying an asset at a low cap rate, and you dont achieve the rent growth you are projecting, the results can be punitive. Financial underwriting adds to the investment stress with difficult terms and problematic appraisals not matching up with anticipated property values. We certainly have seen speculation in real property increase, and out-of-the area investors are now looking at northern Nevada as a viable region to place capital. However, the perceived rent growth, job growth and property economics have not yet changed to warrant some of the asking prices that we are now seeing in the marketplace. Though there is still plenty of product and repositioning in the market, realistic growth and value expectations will be the key in successfully disposing and/or acquiring an investment property. Over the next several years, we anticipate that the abundance of job creation will significantly impact our area, which will fuel new development in all real estate classes.

Tom Fennell is a principal and broker with Dickson Commercial Group.

The Village at Iron Blossom is up for auction, one of several large apartment complexes expected to change hands in the third quarter of 2015.

Sally Roberts/NNBW

Tom Fennell

Northern Nevada Real Estate Journal | Monday, July 27, 2015 | www.nnbw.com | 9

Office Market continued from p1

Kietzke Lane is usually local developers wanting to sell to a local market, he said of the tenant mix, which are mostly Nevada-based companies. In South Meadows, youre selling to a national market, he said of leasing activity. The area, which is becoming a tech hub by virtue of new tenants like Grand Rounds, attracts business owners and office workers who want an open plan, meaning fewer cubes and walls. With downtown Reno catering to many law firms, accounting offices and financial services businesses, the standard office set up will continue. While they want the latest in technology upgrades, These are people who need privacy for their clients, so an open office concept doesnt fit the bill. In terms of Class A buildings, there is a race for the best space, tilting the scales in favor of landlords when leases come up for renewal. Many transacted fire sale leases at the depths of the recession five years ago. In a recovering economy, that no longer applies. So look for growth in rents.

Landlords are going to be demanding more money, which will shift many tenants to more affordable Class B and C buildings, he predicted. Reno is an interesting market, said Ruffin. Office space utilization is highly dependent on the strength of the local economy. Its a regional office not a national headquarters kind of market. Still, the mood is more upbeat in the commercial real estate circles. Sales will be strong if you can find investment properties, said Ruffin.

A big factor? Once Tesla was announced, attitudes changed and Reno changed, he observed. Teslas arrival will not only impact the commercial real estate market, but the residential market as well, said Molyneaux, talking about the potential housing needs of its employees and those gearing up to meet the demand For the rest of 2015, Ruffiin expects reasonable activity in the Reno-Sparks office markets. Itll be an average year, he said. Even though economic fundamentals are much improved, Were still coming from a low bar, he added, referring to the toll wrought by the Great Recession.

Food continued from p1

Foodservice, Costco, Wal-Mart, Raleys, SaveMart, Safeway, Harrahs and served at many Nevada and California restaurants. Founder/CEO Fran Pritchard came from California to Gardnerville 22 years ago when her husband retired from IBM. Shed spent years as a manager in the commercial food service industry, where she became known for her fresh salsa, which customers told her was killer, hence the company name. In 1993, frustrated with working at a local mini mart, she decided to test the market with a fresh salsa product she made in a local restaurant kitchen after hours. After getting positive feedback from local restaurants and delis, Pritchard decided she had the recipe for a viable business and she remembers, thats when the learning process began. One of the biggest hurdles she faced was finding a new home with room to expand when her plan to sell the company failed several years ago after shed sold off all her equipment and gave up her space to another food manufacturer. Due to all the new government regulations, which she says are choking small food businesses, by going

way overboard with no common sense, she had to locate a 4,000-square-foot property that would meet her expansion needs, accommodate her eight employees and invest in all the necessary improvements, including a new walkin refrigeration system, a roll up door for her trucks, separating out the production area from inventory and shipping, and adding new drains for sinks and toilets at roughly $3000 per drain. Now being subjected to third-party audits for food safety, Pritchard is required to document everything that takes place in the building and must keep the doors locked due to a new bioterrorism act. A benefit of being in business in a small community is the synergy that exists with other food manufacturers. We work to help each other out and promote each others business, Pritchard said. A relationship with Val and Sal Gray of Italian Hearts Pasta Sauces in Gardnerville is a prime example. When they met several years ago, the Grays were preparing to build a production facility/cafe in mid-town Reno. After losing jobs in the recession, friends suggested and supported creating a business around the traditional sauce that was a mainstay of

their regular dinner parties. Funding was a major hurdle. Undeterred, the Reno couple began building the company in a shared Sparks commercial kitchen, which didnt pan out. Then they explored the idea of working with a co-packer. But we wanted what we served to our friends and family to be what we sell commercially, Gray said, and notes the co-packing option meant giving up the quality control which would guarantee their high standards of taste and nutrition The Grays found great compatibility with Prichards business model and values, sharing many of the same fresh ingredients and production standards, especially around cleanliness. They were able to take over the turnkey production facility two years

ago, which continues to be a better business solution, even with the regular commute. Although they sell their three Italian Hearts brand sauces through four Whole Foods stores and other groceries, including Raleys, the couple also has an Etsy storefront and markets directly to customers at local events and from their facility at 1425 Industrial Way Suite C in Gardnerville. People can come here and get their whole dinner, she says. That includes her homemade heart ravioli.

Renown picked up the Reno Tahoe Tech Center building for $11 million. Courtesy photo

Tim Ruffin Melissa Molyneaux

The staff bottles original recipe Killer Salsa for sale at Costco.

Sal and Val Gray are seen slow cooking a batch of sauce.

Photos by Susan Ditz

10 | Northern Nevada Real Estate Journal | Monday, July 27, 2015 | www.nnbw.com

In her own words: ArchCrests Erin Krueger-Seipel

Name/Title/Company: Erin Krueger-Seipel, Marketing and Office Manager for ArchCrest Commercial Partners where I am also a part of the Krueger Land Team. Number of years with company: 3Number of years in the profession: 17Education: BS in Business Administration with a minor in marketing from the University of Nevada, RenoLast book read: Yikes, its been awhile. Does Pinterest count? Favorite movie: Too many to name. Im a sucker for any romantic comedy. Favorite musical group or genre: I love music and all genres so its hard to name my one favorite. But if I must, it would be the Dave Matthews Band.Spouse, kids or pets: Husband and just two four-legged children for now a Labradoodle and a 20-pound cat.

Northern Nevada Business Weekly: Tell us about your company and the duties of your position:Erin Krueger-Seipel: ArchCrest Commercial Partners is an independent commercial real estate brokerage firm offering an array of commercial real estate services in northern Nevada. I wear a lot of hats for ArchCrest. Primarily, I work alongside my mentor and father as part of the Krueger Land Team where we specialize in the sale of residential land. I also serve as the office and marketing manager where I oversee all marketing efforts and day-to-day operational activities. NNBW: How did you get into this profession?Krueger-Seipel: When I was just 16, my dad hired me to help around his office, doing tasks such as filing, entering business cards and typing letters. He was with Grubb & Ellis-NCG at the time and I was soon hired on as the marketing assistant. I worked my way up from there, adding on responsibilities and changing job titles over the years. I grew up in this business and I fell in love with it early on, which is why Im still here 17 years later. NNBW: Tell us what it was like to start your own business? How did you go about the process of getting started?Krueger-Seipel: I was very fortunate to be a part of the creation of ArchCrest Commercial Partners. I helped create the companys brand, marketing plan and operational processes. It was a fun learning experience.NNBW: What is one of your biggest professional accomplishments?Krueger-Seipel: In my job capacity, its very easy to get stuck behind the desk. So a few years ago, I decided to step outside my comfort zone and get more involved in the real estate community by joining CREW (commercial real estate women). This organization really brought me out of my shell. I was voted onto the board of directors and then honored with the opportunity to serve as the northern Nevada chapter president. This is definitely one of the biggest accomplishments of my career. NNBW: What do you enjoy most about working in your field?Krueger-Seipel: I love that after 17 years in this business, I am continually faced with new challenges. I also enjoy being a part of this markets growth and development. Its truly rewarding to see a piece of dirt I helped market become a new development. NNBW: Whats the most challenging part about your job?Krueger-Seipel: While I love all the hats I wear at the office because it keeps the job interesting, it is very challenging to maintain a high level of quality when you have to juggle them all at once. NNBW: What advice would give anyone who wants to get in your profession?Krueger-Seipel: Going above and beyond what is expected really pays off in the long run! NNBW: What was your first job?Krueger-Seipel: I worked in a nursery at our neighborhood church where I fed, changed diapers and tried to keep happy several infants at one time. NNBW: What are your hobbies? How do you spend your time away from work?Krueger-Seipel: Ive had intentions of taking up serious hobbies in past, like photography, but never actually havenot yet at least. I like spending my free time with family (I have a pretty awesome one). I absolutely love being an auntie and spend every chance I get with my nieces and nephew. I use them as my excuse to see the latest cartoon in the theatre, go to awesome places like Jump Man Jump, color in coloring books and really just be a kid again. NNBW: Do you have a favorite vacation spot?Krueger-Seipel: I used to love a Mexican beach vacation, but unfortunately my last vacation, which was my wedding and honeymoon, resulted in a hurricane and becoming a refugee of Mexico. Im now staying close to home these days and enjoying beautiful Lake Tahoe or the California Coast. NNBW: If you had one moment in time to cherish for the rest of your life either professionally or personally what would it be and why?Krueger-Seipel: Marrying my husband because he truly brings the best out of me and life is so much better with him in it. NNBW: Last concert or sporting event attended?Krueger-Seipel: I recently saw Ed Sheeran perform at the Greek Amphitheatre in Berkeley. He is such a talented artist and it was an amazing experience to watch him perform live. His show definitely made my top 5! NNBW: What did you dream of becoming as a kid?Krueger-Seipel: It might sounds crazy but I actually dreamt of working in an office as a kid! I used to set up a desk by the home phone and would wait for it to ring so I could take messages (it would never ring) and my favorite Christmas present from Santa was personalized stationery and a briefcase. I would beg my dad to let me go to his office so I could file paperwork and buzz all the different cubicles from his phone. Funny how filing is now my most dreaded task!NNBW: If you had enough money to retire right now, would you? Why or why not?Krueger-Seipel: I honestly think I would be bored not working, though this is my pre-children self speaking. If I had enough money to retire right now, I would, but I would stay in the game by investing in real estate and managing my own assets. NNBW: Why did you choose a career in northern Nevada? What do you like about living/working here?Krueger-Seipel: My parents tried ruining my life by moving me to Reno after my freshman year of high school. Little did I know then that it would be the best thing they ever did for me and I would grow to love northern Nevada and never want to leave. I was given an early opportunity for a prosperous career that I decided to stick with, so I attended college at the University of Nevada, Reno so I could continue working and growing in this profession. I love the four distinct seasons that we have here and that we go from 0 to 100 degrees over the course of a year. I love the people in this community and the opportunities northern Nevada has given me and my family.

Museums rooftop renovation embraces the Nevada skyBy Sally Robertssroberts@nnbw.biz

A new rooftop look is under construction for the Nevada Museum of Art Work is underway to make the original, under utilized, outdoor space into a more hospitable and elegant year-round venue. More than a year ago, museum officials took a close look at underleveraged revenue opportunities, museum Executive Director David Walker said at a recent event to announce the project. We have doubled our operating budget in the last five years, Walker said. As we continue to develop new programs, it costs more. The fourth-floor rooftop was high on the list of underachieving spaces. When the museum was constructed in 2003, the rooftop was created as a unique venue with panoramic views of the city and Sierra. However, thanks to northern Nevadas summer winds and inclement winter weather, it remains empty much of the year. Architect Will Bruder, who designed the original building, was charged with developing concepts to solve the weather challenges of the rooftop while also creating a dramatic architectural addition to the museum and downtown Reno. Renamed the Fred W. Smith Penthouse, the $5.5 million re-creation of the rooftop is expected to be completed in early 2016 and include an enlarged, windowed inside space plus protected outdoor area. The 4,800-square-foot Nightingale Sky Room features retractable floor-to-ceiling glass walls that provide a sheltered interior space but can be opened up in good weather. Up to 250 people can be seated for formal dinners, or 397 for concerts, parties, lectures, conferences, workshops, childrens programs and other special events. Noted Reno-area restaurateur Mark Estee is helping design a state-of-the-art banquet kitchen. Outside the Sky Room will be the Stacie Mathewson Sky Plaza with nearly 5,000 square feet of patio space protected by glass parapets that block the Nevada winds but not the views. Opening the Sky Room to encompass the Sky Plaza can increase dinner seating to 500 people. Clark/Sullivan Construction was called in as the contractor for the project. The Sparks-based construction company has been the general contractor for every major capital development at the museum since its inception in 2003. They know us, know our business, Walker said. Clark/Sullivan also did the work on the recently remodeled museums E.L. Cord Museum School, which Walker pointed to as an example of boosting the revenue stream for the museum with an existing program. The

school, previously hidden inside the museum, presents a variety of art classes for all ages. Tuition increased 35 percent over the last five months, tied directly to being more visible. If people dont know where you are, people dont come, Walker said. By increasing the usefulness of the rooftop venue, the museum expects to substantially increase its revenue flow from special events, including weddings. We do 10 weddings per year now (at the museum), Walker said. Well be doing about 30 after the Sky Room is completed. The Sky Room is named and designed with homage to the historic Mapes Hotels elegant top floor Sky Room. The Mapes in downtown Reno was imploded in 2000. People have fond memories attached to the Sky Room, Walker said. We felt we could become the Sky Room for the 21st century. Currently, most special events in Reno are held in the citys hotel/casinos, he said. Thats fine. Were not going to take that away from them. But a lot of people, a lot of organizations would like a more inspirational location. We will have the most unique space in northern Nevada. Steven Nightingale, with the Nightingale Family Foundation Trust, which donated the seed money to get the project started, helped develop the rooftop project from conception. The theme present in every conversation I had with David (Walker) and Will (Bruder) was, what is a museum? and what does a museum do? A museum collects beauty and safeguards it and offers it to the community. The museum, is conceived as a place we can gather as a community and have the best chance to do our best work together, Nightingale said. Funding for the Sky Room project came from generous support from individuals and foundations, most of which have had a long relationship with the museum. For all intents and purposes, fundraising is over (for the rooftop project), Walker said.

By increasing the usefulnessof the rooftop

venue, the museum expects to substantially

increase itsrevenue flow from special

events, including weddings.

Northern Nevada Real Estate Journal | Monday, July 27, 2015 | www.nnbw.com | 11

South Meadows recovery increases speedBy Sally Robertssroberts@nnbw.biz

The South Meadows office market is again trotting along after being tripped up in the recession. Through the first half of the year, our net absorption (of office space) is larger than all of last year, said Matt Grimes of CBRE Office Services. In the last few months, Grand Rounds healthcare, BlackRidge Technology and Coupa office software developer, snagged some of the last large Class-A spaces with freeway visibility, all on Professional Circle between Double R Boulevard and Interstate 580. Fronting the freeway, there are limited options, Grimes said. The best available spaces are leasing out. On the northern edge of South Meadows, The Nevada Department of Wildlife is moving in to 6980 Sierra Center Parkway space, long empty after Microsoft and Intuit moved out. Office building sales are also moving forward. In May, Renown Health purchased the 63,200 square foot building at 10315 Professional Circle. Even though it was considered a distressed sale because of low vacancy rates, its close proximity to Renowns South Meadows campus, plus having data center technologies in place, made it a prime office acquisition for the areas largest medical provider.

Renown paid $11.7 million, or more than $184 per square foot. Nev Dex Properties purchased 10345 Professional Circle for $9.5 million earlier this year. The 64,300 square foot building houses offices for Grand Rounds, Aerotek, PC-Doctor, Inc., and Lennar.

The office market in the South Meadows has been impressive this year, Grimes said, but there are still long-term vacancies that need to be filled. Second quarter numbers are still being compiled but are expected to show continued improvement from the depth of the recession when South Meadows office vacancies climbed to 28.1 percent. First quarter numbers were hurt, in large part, to the market return of

the former WMS Gaming Building on Trademark Drive and the complex at 10315 Professional Circle. The office vacancy rate climbed to 18.6 percent compared to 15.6 percent in the fourth quarter of 2014. With the Professional Circle building now part of Renown, and the move-ins by Grand Round, BlackRidge and Coupa, expect to see second quarter vacancies back in line with the overall trends.

Renown Health recently purchased the 63,000 square foot building in the Reno Tahoe Tech Center for $11.7. Located at 10315 Professional Circle, its located just south of its South Meadows campus.

Sally Roberts/NNBW

Fidelitone gets new fulfillment center in Sparks

Bank backs new downtown Reno health clinic

NNBW Staff

Fidelitone Logistics Inc. closed a deal in June to lease a 95,200-square-foot distribution space in Sparks for an order fulfillment center. Its expected to be operational by August. The Sparks location at 1135 Southern Way, the companys second in the area, will support Fidelitones order fulfillment clients requiring direct-to-consumer fulfillment to consumers in the western half of the United States. They also operate a center with more than 50,000 square feet on East Parr Boulevard in Reno. Fidelitone, headquartered in Wauconda, Ill., provides third-party logistics and supply chain solutions for Fortune 100 companies and start-ups in the United States and internationally. Fidelitone was founded in 1929 as a phonograph needle manufacturer. Today it processes thousands of orders from small parts to large palletized products daily and ships to 120 countries.

The company was recognized by Inbound Logistics as a Top 100 third-party logistics provider in 2013 and 2014. Fidelitone has been featured in the Crains Chicago Business exclusive ranking of the largest privately-held companies for five years running, and was named to Inc.s 500 | 5000 list of the nations fastest-growing private companies in 2014. Representing the landlord, Morrison Street Capital, LLC, in the Sparks-lease transaction were commercial specialists J. Michael Hoeck, Dave Simonsen, Michael Nevis, and Steve Kucera of NAI Alliance Industrial Properties Group.

Morrison serves as the investment manager of a series of discretionary real estate funds based in Portland, Ore. Working on behalf of Fidelitone was Bryan Gardner of Reno Property Management. In other commercial real estate news, the building at the Tahoe Reno Industrial Center housing the Zulily distribution site changed hands this week. CBRE Global Investors has brokered a deal on behalf of an unnamed U.S. client to acquire the property. Zulily, Inc. has a long-term lease for the 707,010-square-foot

warehouse/distribution site at 3200 USA Parkway. Zulily, an e-commerce business, sells clothing, toys and home products catering to mothers and children. Developed on a build-to-suit basis in 2014, the property is among the newest deliveries to the Reno-Sparks MSA and includes high-quality construction and state-of-the-art building features that serve the tenants ecommerce requirements and future growth needs. Industrial is a very in-demand asset class at this time, and we were able to acquire a newly built, high-quality asset that should deliver a secure income stream to our client, in excess of yields that would be achieved on a similar industrial product, said Mike Everly, Portfolio Manager, CBRE Global Investors. TRIC is a master-planned industrial park located 12 miles east of Reno in McCarran on Interstate 80, a major national transportation thoroughfare.

NNBW Staff

U.S. Bank is investing $5.6 million in the construction of a new, nearly $20 million medical facility for the Northern Nevada HOPES clinic that will care for an additional 400 patients a month, including for the first time, primary pediatric care. The clinic, which is operating out of a modular building at 580 W. Fifth St., is under construction now and is slated to be completed by December. The new 37,500-square-foot building

will span three stories and be named for its benefactor The Stacie Mathewson Community Wellness Center. The new HOPES clinic will be Renos first integrated care facility, where patients will have access to a wide range of medical and wellness services in one location, said HOPES CEO Sharon Chamberlain. It will become a medical home for 10,000 patients a year, the vast majority of whom are low-income or homeless individuals. A medical home

is akin to a traditional physicians office where all non-urgent care begins and is coordinated. HOPES performed a needs assessment of its area downtown and found that there is a tremendous shortage of medical providers (3,952 patients for every provider). Northern Nevada Hopes is vital to so many in the greater Reno area who struggle to access comprehensive and quality health care, said Maria Bustria-Glickman, vice president of U.S. Bancorp

Community Development Corporation. U.S. Bancorp Community Development Corporation invested $5.6 million in equity that comes from New Markets Tax Credits. That $5.6 million was provided to community development organizations that loaned the money to the clinic at below-market rates that help close a financing gap. The clinic expansion will generate 105 construction jobs, 43 new permanent positions and retain 52 existing jobs.

In the last few months, Grand

Rounds healthcare, BlackRidgeTechnology and Coupa

office softwaredeveloper, snagged

some of the lastlarge Class-A

spaces with freewayvisibility, all on

Professional Circlebetween Double R

Boulevard andInterstate 580.

Industrial is a very in-demand asset class at this time, and were able to acquire a newly built,high-quality asset that should deliver a secure income stream to our client, in excess of yields

that would be achieved on a similar industrial product.

Mike Everly, Portfolio Manager, CBRE Global Investors

12 | Northern Nevada Real Estate Journal | Monday, July 27, 2015 | www.nnbw.com

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