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JUST SOLD – $2,974,500
25 Ponderosa, West Wendover, NV
Congratulations to Wes Brogan, Associate Advisor, on finding his client their next investment! “This was a very fast and smooth transaction and was over the asking price. Congratulations to my client.” Brogan said of the deal.
January 6, 2022
SVN | Gold Dust Commercial Associates, one of the region’s premier brokerage firms, has completed the sale of Westridge Corners at 5375 Mae Anne Avenue in Reno for $9,900,000.
Senior Advisor, Jack Brower, CCIM of SVN|Gold Dust Commercial Associates represented the seller in the transaction. Tom de Jong, MBA, SIOR and Melissa Molyneaux, CCIM, SIOR at Colliers International represented the buyer.
Through proactively marketing the property, Brower procured a substantial offer of $9,900,000. Westridge Corners is a stabilized, long standing neighborhood center. After holding this asset for 30 years, the seller decided it was time to maximize his returns and deploy his capital elsewhere. With upside in rents, this deal is beneficial for both seller and buyer. SVN| Gold Dust Commercial Associates prides itself on achieving the best result for all parties. With an emphasis on cooperation and collaboration, SVN| Gold Dust is able to accomplish more deals at a faster pace and optimize return and value for everyone involved in the transaction.
January 3, 2022
SVN | Gold Dust Commercial Associates, one of the region’s premier brokerage firms, has completed the sale of 63 Keystone Avenue for $2,350,000.
Managing Director, Tomi Jo Lynch, CCIM, SIOR represented the buyer and the seller, while Associate Advisor Sean Field and Casey Prostinak represented the seller in the transaction. Utilizing our platform of cooperation and maximum exposure for the listing, SVN received multiple offers in a short period of time and ultimately achieved a deal above the asking price.
The building was fully leased at the time of the sale with several longstanding tenants and excellent property management, making it a highly desirable investment for the new owners. 63 Keystone has also been renovated over the past five years and features a large piece of Burning Man art in the front of the building, further elevating the office’s curb appeal. This is the second time Lynch has been involved on the sale of this asset. Lynch said of the transaction, “There is nothing better than repeat clients on both sides of the transaction and seeing an asset through all three laps of its lifecycle: acquisition, holding, and disposition. We are looking forward to assisting the new owners with leasing and management of this asset during their holding period.”
SVN is the only major commercial real estate brand that proactively markets all its qualified properties to the entire brokerage and investment community. Participating in approximately $12.5 Billion in sales and leasing transactions in 2020, SVN advisors shared commission fees with co-operating brokers in order to close more deals in less time and at the right value for clients. Advisors also reap the benefits of our SVN Live® Weekly Property Broadcast, cloud-based leading-edge technology, and national product councils. This open, transparent and collaborative approach to real estate is the SVN Difference that allowed our agents to close this sale quickly, and above asking.
Tomi Jo Lynch, SIOR, CCIM, Managing Director of SVN | Gold Dust Commercial Associates has achieved the SIOR industrial designation awarded by the Society of Industrial and Office REALTORS®. SIOR is a Washington, DC-based international professional organization of more than 3,200 commercial real estate professionals who have earned the coveted SIOR designation.
To achieve the SIOR designation, Lynch, SIOR, CCIM completed at least five years of creditable experience in the highly specialized field of industrial real estate; met stringent education requirements; and demonstrated professional ability, competency, ethical conduct, and personal integrity.
Individuals who hold the SIOR designation are top producers in the commercial real estate field and are represented in more than 685 cities in 36 countries around the world. SIOR enforces a strict code of ethics and require designees to complete its ethics course within their first three years of membership.
Tomi Jo Lynch, SIOR, CCIM is a Managing Director with SVN® | Gold Dust Commercial Associates specializing in industrial properties with a focus on landlord representation and investment sales. Lynch’s responsibilities at SVN® are varied and include brokerage services, business development, and management of the brokerage team. Lynch has closed over $116 Million in transaction volume since beginning at SVN. Lynch has a passion for finding value-add opportunities for her clients, providing creative real estate solutions, and operates as a holistic solutions provider for clients.
“Tomi Jo is a prime example of an exemplary Commercial Real Estate professional. To achieve both the CCIM designation and the prestigious SIOR designation truly sets her apart in the Commercial Real Estate industry. These designations signify an ongoing commitment to practicing her craft at a high standard every day,” Thomas Y. Johnson, Co-Managing Director and Corporate Broker for SVN, said in a statement.
Lynch attended the University of Colorado, Boulder due to their outstanding business school and commercial real estate program where she learned the nuts and bolts of the industry. Lynch worked for several other brokerages, including CBRE, prior to joining SVN.
In addition, Lynch served on the NAIOP Board of Directors for three years where she played a role in sponsorship, programs, and overall recruitment. Lynch currently serves as President Elect of both CREW Northern Nevada and CCIM of Northern Nevada.
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SIOR is the leading global professional office and industrial real estate organization that certifies commercial real estate service providers with the exclusive SIOR designation, based on achievement, knowledge, accountability, and ethical standards. Only the industry’s top professionals qualify for SIOR. Today, there are more than 3,200 members in 685 cities and 36 countries. For more information, visit www.sior.com.
SVN Gold Dust Commercial Assoistactes Senior Advisor Christopher Mann, MCR represented the tenant on an industrial lease of 4022 Technology Drive, a 15,675 square foot space located in Carson City. The long-term lease was obtained in record time after comprehensive market analysis.
The transaction was a cooperative effort between SVN Gold Dust Commercial Assoistactes and Gillmor Coons Real Estate Group. The industrial space is a high power, high feature production facility and is being leased by a leading-edge food grade manufacturer.
Managing Director, Tomi Jo Lynch, CCIM and Senior Advisor Christopher Mann, MCR represented the owner in the transaction of a 28,950 square foot industrial space at 14400 Lear Boulevard. The space is located in the North Valley’s submarket and is a freestanding building.
Managing Director, Tomi Jo Lynch CCIM represented the seller in the sale of a 5,368 square foot space located at 5875 Tyrone Road. This transaction included a cash buyer, received multiple offers, and spent minimal time on the market.
Senior Advisor Amanda Eastwick represented the owner on an industrial lease of 2555 Peru Drive in The Tahoe-Reno Industrial Center.
The 25,000 square foot industrial building will be used for a COVID-19 antibody development and manufacturing company. This listing spent minimal time on the market and is being leased by a California business relocating to Nevada.
SVN Gold Dust Commercial Associates is proud to announce Makenna Backstrom as Director of Marketing. Backstrom previously held the position of Brokerage Services Coordinator, and now will be taking on additional job responsibilities.
“Makenna has proven herself to be an integral part of the SVN team here in Northern Nevada and will be taking on additional marketing responsibilities for our company including all media relations, social media, launching our podcast series, and integration between all of our marketing platforms,” said SVN Gold Dust Managing Director Tomi Jo Lynch, CCIM, in a statement. “We are excited to be a part of her career advancement.
Click to read the full feature in the Northern Nevada Business Weekly
Apartment Rent Collections for April and May Show Promise
By Senior Advisor, Gerrit Hillebrand
Historically, and ever more visible during a financial crisis, there is a clear correlation between density and delinquency. While Reno may be a tertiary market in population, the last six years have driven local economic behavior and performance that rivals many larger markets across the southwest and western United States.
As of July 2019, the Greater Reno-Sparks job market boasted three times the national average employment rate. The past five years brought a growth in labor force population of 18%, with a 24% growth in employment.[1] Yet eight months later, Nevada shot to number two in unemployment after the onset of COVID-19.[2] With Nevada commerce heavily weighted by entertainment and service industries, thousands found themselves unable to earn a living overnight.
Similar effects were seen in capital markets, where secondary lending halted within weeks as wealth vanished in the equity market and liquidity became even more precious. Here in Northern Nevada, we have seen a rush of investors from California and other surrounding states interested in our market, as investors viewed our market as offering undervalued real estate. The Reno MSA, including Sparks and Carson City, offered a sizeable amount of inventory ripe for the value-add investment model that the out-of-state investors were looking for. In this strategy, the investor buys low, renovates the property thereby justifying increased rental rates, and sells for a substantial profit once the asset is stabilized. When local owners saw rising prices, they were enticed to sell, in many cases demanding the renovated price for their weather-worn and threadbare asset and getting it from the out-of-state investors.
But how will the Reno fare against the unseen enemy that the global economy is currently fighting? With clients and industry professionals working together, searching for a glimmer of hope or a solution on the horizon, many of us have been watching the rental collections for the months of April and May as an early indicator for the impact of COVID-19 on the housing market.
The most recent American Housing Survey data, collected in 2017, shows that in an average month, 3.9% of tenants will fail to pay full rent, but the April 2020 report states, “we saw this delinquency rate skyrocket 550 percent.” After conducting a rental survey of stabilized assets across the Reno apartment market including an estimated 1,800 class A units, 1,250 class B units and 800 class C units, the local data appears to fall in line with the national findings.
The data set for the class A group included five large apartment properties, constructed between 2000 to 2008, with amenities such as tennis courts, dog parks, swimming pools and fitness centers. Garage and carport parking were also common here. Several leasing managers at these locations report that an estimated 85% of tenants paid on for April. Of the remaining 15% of tenants that were late in their payments, almost all paid in full by month-end. Many of these trailing payments were made piecemeal throughout the month, illustrating good faith on behalf of the tenants. In some cases, and at other class A properties, as few as 1.6% of tenants made no payment at all, with no communication as to why they would not be making a rental payment. Three of the five properties surveyed received a higher percentage of renewals for April and May than previous years.
The class B samples featured product built between 1972 and 1979, recently renovated and stabilized. Many of these communities still feature swimming pools, fitness facilities, carport parking and other amenities. For April, this sector of the apartment market saw a lower percentage of timely payments, falling in the 70-80% range. The remaining tenants requested assistance, including partial or deferred payments, many of which included payment in full by end of April. Hardship cases were supported with letters from former or current employers, outlining reduction in hours or wages. Some unfortunate tenants were able to make only a $500 payment but are communicating openly with leasing managers to discuss solutions for repayment moving forward.
For several of the class B facilities, May brought an increase in successful payments despite industry chatter that financial reserves were perhaps depleted in covering April obligations. One property even saw 98% success rate for rental payments as of May 8th.
The class C sector has been one of frequent discussion, as this was the primary acquisition target for many investors entering the Reno/Sparks market. With the largest range of potential upside through renovation and rental increase, many of the class C product in our market has been purchased and improved upon throughout the latest economic expansion. With the shrinking stock of affordable housing in our market, renters in this group find themselves fighting to stay in place.
The majority of the surveyed properties that fall under this category were built between 1950 and 1972, made of brick and block architecture, with single pane windows and dated HVAC, electric and plumbing systems. There are no amenities found here, with parking available onsite but without cover, or on the street between the property lines. In April, property owners and managers in this group reported on-time rental payments ranging from 85-95%, with most late payments brought current throughout the month. One client report that an estimated 8% of tenants within the 350 unit portfolio demonstrated loss of income, requesting assistance with payments for the coming months. In May, the same contacts delivered data showing that the numbers for May have fallen to 83-88% of timely payments, with some tenants voicing concerns about inability to secure unemployment. Another client stated that their group has seen a recent rise in rental applications. With some prodding, they shared that this is due in part to tenants realizing that they do not actually use most of the amenities that initially attracted them to the larger, newer properties. Other driving factors were proximity to work and the entertainment districts of Midtown and Downtown Reno. This allowed such tenants to shave $150-$350 per month in unnecessary expenses.
While the numbers do appear to show a downward trend, the data is far too new to arrive at a conclusion. Stimulus checks, cash reserves and unemployment are being called into play in an effort to stay afloat as we navigate the uncharted times ahead. Thankfully, Northern Nevada is a ‘pull yourself up by your bootstraps’ community, so while we may not see the abundance found in
our most recent economy, technology and logistics are still powerful forces in this economy and as Nevadans, we will always continue to fight to find a way forward.
Senior Advisor | SVN Multifamily Council
775.433.0240
NV Lic.# S.186721
[1] Economic Development Authority of Western Nevada, A Region for Growth, https://www.edawn.org/ (last visited May 13, 2020).
[2] U.S. Bureau of Labor Statistics, https://www.bls.gov/web/laus/laumstrk.htm (last updated Apr. 17, 2020).
