In the May 13 Council meeting, the city council may decide to sell 705 North Virginia Street to Tooles Development Company for a price of $374,000. Two appraisals valued the vacant land at around $490,000-$500,000.
A possible tenant would be Jimmy John's, recently displaced by construction in the area. Included in the packet for the Council is a Letter of Intent from Jimmy John's to lease the space when/if built.
According to the buyer, the appraisals were pre-COVID pricing. That's obviously debatable as I feel it's too soon to tell what affect this pandemic has had/will have on home and land values.
Actually, the developer didn't say COVID was the reason for the lower offer. (The RGJ article you likely relied on was inaccurate.) The developer's presentation spent a great deal of time discussing how the appraisals were flawed, primarily in that the appraisals relied only on sales comps (no income approach) and the specific comps were for the student housing projects nearby. Much higher density than the 7,500sf that the developer purchased from the City. Appraisals are A data point, not THE data point. P.S. The mention of COVID was in reference to the fact that their offer was made Pre-COVID and they were honoring that original offer, despite the fact that COVID has changed some real estate demands (drive-thrus, etc.) that this property cannot satisfy.
looks like the winner here is Savor Motor Lodge, who bought the property for $350k in 2007, held it for a month, and resold to the City of Reno for $710k. Loser, as ever, is the city who gets to realize a $336k writedown.
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what's the 25% discount for? goodwill for an assembly member's spouse?