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remano
Joined: 20 Dec 2005 Posts: 717
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Posted: Dec Sun 14, 2008 9:43 am Post subject: Montage troubles |
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To nobody's great surprise, L3 Development has announced that they are voluntarily deeding the Montage Condos (former Golden Phoenix) over to Corus Bank in lieu of foreclosure. Although they say the project is 100% finished and certificates of occupancy will be available for all units by Wednesday, they have apparently concluded that they still will not be able to get enough units sold in time to meet their financial obligations.
The transfer is said to be "amicable" and Corus will retain L3 as the management firm to operate the project. The bank is also reviewing options for adjusting the prices on new units and those already sold to accomodate current market conditions. Even with lower prices, however, given the current mortgage market many of those who had signed up and still want to buy may not qualify now for the financing.
The letter from L3 to prospective buyers can be seen at:
http://www.downtownmakeover.com/ |
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BC Dave Site Admin
Joined: 18 Dec 2005 Posts: 1598
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Posted: Dec Sun 14, 2008 2:14 pm Post subject: Montage |
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Although I will always miss the old Flamingo, this is one redevelopement that looked promising. They took it down to bare steel girders and rebuilt from there. Lots of investment there. What I saw in late October looked quite attractive despite a color scheme I had a little trouble with.
Sounds like there's still hope for it. Best of luck Montage. |
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JD
Joined: 18 Dec 2005 Posts: 956
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Posted: Dec Sun 14, 2008 4:27 pm Post subject: Reno Condos |
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Is there any truth that the King's Inn is the next Condo projext to get public funding & then go bust? |
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john Site Admin
Joined: 17 Dec 2005 Posts: 1181
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remano
Joined: 20 Dec 2005 Posts: 717
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Posted: Dec Mon 15, 2008 8:43 am Post subject: Re: Who cares? |
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Since the last update to that story was over a year and a half ago I would say the King's Inn project is a no-go.
In fairness to Montage, though, they did not use any public money, they went bust all on their own. The building is still there and it is still a first class conversion. Instead of just reconfiguring existing hotel rooms like River Walk and the Belvedere seem to have done, they stripped the entire structure right down to the steel frame and started over. I am hoping that the project will eventually get back on its feet and become what the original developers envisioned. |
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RenoLady
Joined: 23 Feb 2006 Posts: 316
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Posted: Dec Mon 15, 2008 9:18 am Post subject: |
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Okay, help me understand this. We're throwing names out like Flamingo, Golden Phoenix, Montage, L3, whatever. But, isn't this the new owners of the recently defunct Fitz?
If yes, does that mean that the only cash-flow downtown property they had, they just boarded up? |
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remano
Joined: 20 Dec 2005 Posts: 717
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Posted: Dec Mon 15, 2008 11:53 am Post subject: |
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You are correct that the Montage developers are the new owners of the Fitz. The Montage was never a cash flow property because they didn't get it done in time to start selling units before the bank takes over. The Fitz was, perhaps, a cash flow property but in recent months may have become a negative cash flow. This is pure speculation on my part, but they also may have drained the Fitz's reserves to put into the Montage, leaving the Fitz in an economically untenable position to survive the winter. Too bad, because the train trench plaza is near to completion of phase one and the Fitz was probably in the best position of all downtown casinos to benefit from it.
RenoLady wrote: | Okay, help me understand this. We're throwing names out like Flamingo, Golden Phoenix, Montage, L3, whatever. But, isn't this the new owners of the recently defunct Fitz?
If yes, does that mean that the only cash-flow downtown property they had, they just boarded up? |
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RenoLady
Joined: 23 Feb 2006 Posts: 316
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Posted: Dec Mon 15, 2008 1:06 pm Post subject: |
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I don't know if Fitz was operating with a positive cash-flow AFTER the purchase by the Montage people, but they were when they were in receivership and the trustee was running it for the creditors at the purchase. I remember many would be buyers, including Atlantis owner Ferrari and (German) partners, whose offer was rejected (gaming license problems).
I remember questioning the prices of Montage condos asking, who is going to buy these things? and being answered with, they're really nice....
I guess I'm frustrated that another Reno icon has bit the dust due to speculation and short sightedness. |
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CaSwede
Joined: 28 Feb 2006 Posts: 866
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Posted: Dec Mon 15, 2008 3:14 pm Post subject: |
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Anyone have an idea what these places cost? I "explorered" their website and it is full of how wonderful it is, but I could not find any link with a price list.
How many have they sold? I wonder also if there is already a secondary market....those that bought and want to bail out.
Might be a bargain now? |
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mustangmike
Joined: 21 Dec 2005 Posts: 76
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CaSwede
Joined: 28 Feb 2006 Posts: 866
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Posted: Dec Tue 16, 2008 12:19 pm Post subject: |
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Thanks Mike for the link. It will be interesting to see where they price the left over units. I see the fed is lowering rates again, and one person stated we might see 3% mortgage rates. ???
I imagine all those that bought in much earlier are really pissed. |
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remano
Joined: 20 Dec 2005 Posts: 717
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Posted: Dec Tue 16, 2008 1:15 pm Post subject: |
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Another interesting quote from that article:
"Leal said Corus Bank is not the backer of the Fitzgeralds remodeling and the plans to develop that casino will not be affected by the change in ownership for the Montage."
I'll believe this when I see it.
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hawk
Joined: 17 Dec 2005 Posts: 508
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Posted: Dec Mon 29, 2008 9:21 pm Post subject: trench cover |
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The trench is covered for two blocks west of Virginia St. Don't knowif they will cover more but the cover beside Montage has a bunch of compressors or whatever standing in the lot taking up space. Is this ventilation for the trench or what?
I wonder if they will cover all the way to the Sands. I doubt it but it would help the Sands, I suppose. |
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remano
Joined: 20 Dec 2005 Posts: 717
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Posted: Dec Tue 30, 2008 12:54 pm Post subject: Re: trench cover |
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hawk wrote: | The trench is covered for two blocks west of Virginia St. Don't knowif they will cover more but the cover beside Montage has a bunch of compressors or whatever standing in the lot taking up space. Is this ventilation for the trench or what?
I wonder if they will cover all the way to the Sands. I doubt it but it would help the Sands, I suppose. |
The first phase of the cover looks to be complete. They took down the construction fencing last week and allowed access to the public. There were big plans for the second stage but no money to pay for it so the "plaza" will probably stay in its current configuration for a while. My understanding is that the cover cannot be extended any farther without it becoming a "tunnel" rather than an "underpass," and that would make the engineering and safety requirements much more complex and expensive.
I hope the plaza is a success but for right now the south side includes Fitzgerald's (closed), Old Reno Casino (closed), the Masonic Lodge (closed), and the Montage (not yet open); and the north side features Eldorado's loading docks and Eldo's parking ramp (no pedestrian access), the Third Street Bar (good music), a closed weekly hotel and the closed former Gospel Mission. Not a very good start to draw in that foot traffic. |
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