Investment Overview

ParcOne60 is a 258-unit multifamily property consisting of 171 studio units and 87 one-bedroom, one-bath apartments, with unit sizes ranging from 306 to 509 square feet. Completed in December 2001, ParcOne60 is situated on approximately 1.284 acres in downtown Reno, just 500 feet south of the Truckee River. The property has 123 spaces of gated, garage parking, is fully secured with key card access, has a 94 Walk Score rating, and is across the street from the nearest bus stop. Through December 2031, the property tenants must earn no more than 80% Area Median Income (AMI) and rents cannot exceed 80% AMI rents. The property offers significant upside potential, with the stabilization of the property, increasing operational efficiencies, continued unit renovations, and the transition to a fully market-rate asset after December 2031. During the recent unit renovation program, the property’s occupancy rate was 50%, as the property completed extensive renovations of 76% of the units of the property. As the renovations tapered, the property went without an onsite manager until November 2024, which inhibited the ability to rent out vacant units. This provides a new investor to capitalize on an under-managed asset, which is currently showing a positive trend towards stabilization with the current on-site. Along with the inherent upside, the asset is priced significantly below replacement cost. To replicate the same asset, construction costs would be nearly double the expected sales price. Downtown Reno is currently undergoing several developments that are considerably improving the submarket. Most significant is the Neon Line District, a one-billion-dollar investment that stretches from downtown Reno’s West Street to Keystone Avenue, and from Interstate-80 South to West Second Street. The Neon Line District is designed to be an arts and entertainment zone that will include a mix of retail, dining, and living options. The developer has acquired dozens of properties and parcels of land, and has over $400 million currently invested, including over $300 million into the renovation of the Sands Regency Casino Hotel, now J Resort, and another $130 million committed to further improvements to J Resort. Near ParcOne60 are several new developments that are assisting to improve and gentrify this submarket, including the Renaissance Hotel, the Ballpark Apartments (368 units), the State Street Apartments (88 units), and an adjacent ±1.58-acre site for a potential for-sale townhome community. Across the street is one of Reno’s only non-gaming, full-services hotels, The Renaissance. A former casino that was transitioned in 2017 to a family friendly venue with bocce ball courts, an arcade, and a riverfront restaurant. The location is within walking distance of both Reno’s MidTown & Wells Avenue Districts that offer dining, nightlife, and boutique shopping experiences for the entire City. The two Districts are home to some of Reno’s best restaurants and bring people from all over the city to experience the best Reno has to offer. Other attractions, all walking distance to ParcOne60, are The Discovery Museum, Nevada Museum of Art, the Truckee River, and the Pioneer Center for the Performing Arts. Since 2019, the current ownership has invested over $4.6 million in capital improvements to elevate the value and appeal of the community. This significant investment includes more than $3.5 million dedicated to the renovation of 191 units, featuring modern finishes and enhanced living spaces for residents. In addition, numerous property-wide upgrades have been completed, such as new carpeting and flooring in common areas, the installation of updated security and controlled access systems, and improvements to the fire prevention system, all contributing to a safer and more comfortable environment. Furthermore, over $600K has been allocated toward revitalizing the property’s exterior, including fresh paint, façade repairs, and elevator upgrades, all designed to enhance curb appeal. The property’s amenities have also received substantial upgrades, with improvements to the fitness center, courtyard with barbecue and picnic areas, and the leasing center and community lounge, further enriching the resident experience at ParcOne60. These enhancements are a testament to the ownership’s ongoing commitment to not only preserving but also increasing the value of the property, while providing an elevated standard of living for both current and future residents.