The Reno Gazette Journal announced the sale of 6 downtown office buildings in Reno by Tolles Development Company.
Mike Higdon's full story below:
A new development company bought six downtown and Midtown Reno office buildings last week, with an eye toward further industrial and multi-family acquisitions and development in Northern Nevada.
Tolles Development Co., headed by Kyle Rea and Par Tolles, wants to jump in while Reno is hot. Tolles was the former president of Basin Street Properties, which redeveloped the Kings Inn into 3rd Street Flats and built the Courtyard by Marriott near the ballpark. Tolles said the company helped him start the new venture.
Tolles said he is adamant about his company staying based in Reno and working to make the region better.
"We are on the cusp of a diversified downtown that will be a collage of business, entertainment, arts, outdoor sports and a university influence that is totally unique to Reno," Tolles said in a news release. "We are not Boise, we are not Austin, we are not Salt Lake, we are Reno — one of the most unique cities in the West."
The acquisition reflects Tolles' belief that the Reno office market is poised for strong growth, according to a news release. Even though the city’s population is expected to explode, no new office space has been added to the market for at least a decade. The new acquisitions helps put Tolles on the edge of this growing market, according to a news release.
“There is going to be an increased demand for your traditional finance, insurance and real estate services just to support this surge in population,” Tolles said in a news release. “And that doesn’t include the office space required by new and growing entrepreneurial companies drawn by Reno’s affordable business costs and outstanding quality of life.”
Recently, the design firm Rhinohub signed a lease to move into Midtown loft office space. Other companies continue to move into to the Bank of America, Its Logistics and US Bank buildings in downtown Reno.
Tolles said he wants to look at multi-family development, too.
"At this point we’re creating a town of apartment dwellers," he said of home prices. Almost half of Reno's residents are renting now. "We’ve got to be mindful of building apartments not just at the top of the market, but also affordable to workforce and middle class.”
He said he's mindful of more "Teslas" coming to the area, causing even more uncontrolled growth that strains infrastructure and schools.
"We’ve gotta rethink how we run our state and our city," he said.
Three buildings in Reno’s financial are: 241 Ridge St., 201 Liberty St. and 275 Hill St.
Two buildings in the Washington Street commercial neighborhood near Hub Coffee Roasters.
The building southeast of downtown at Vassar Street and Cordone Avenue, home to RISE Academy as well as the offices of more than 15 nonprofit organizations.