BUILDING Northern Nevada

PUBLISHED BY THE NORTHERN NEVADA BUSINESS WEEKLY SPRING 2015

BUILDINGNorthern Nevada

2 • BUILDING NORTHERN NEVADA SPRING 2015 Northern Nevada Business Weekly • 3


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The SouthEast Connector: Phase 2 4Public works professionals hit milestone 6Tilt up construction is all over the map 7Reclaimed wood in new construction 9Q & A with Granite Construction’s Kyle Larkin 10Panatonni spec: build it and they will come 12Timber Creek: A sustainable mountain retreat 14

BUILDINGNorthern Nevada

inside:


“This isn’t just a road project, but an environmental engineering project ...”

— Lee Gibson, Regional Transportation Director

Granite Construction crews prepare to do site work on Phase 2 of the SouthEast connector project.

By Steve [email protected]

COURTESY GRANITE CONSTRUCTION

Granite-led project

PAVES THE WAY for business, environment

D on’t just call it a road project.

As the second phase of the SouthEast Connector construction project gears up, officials are not only talking up the

vision for smoother and less congested roads for commuters and business owners, but claim that it is paving the way to a greener, less polluted region.

“This isn’t just a road project, but an environ-mental engineering project,” said Regional Trans-portation Director Lee Gibson of the diverse skill sets involved on a number of fronts.

RTC has hired contractor Granite Construc-tion, which has begun delivering equipment and materials in an effort to facilitate staging for heavy construction operations to begin in the very near future, according to the RTC.

Additionally, Granite will be placing environ-mental controls and fencing to delineate where construction operations will occur.

“The environmental controls will help establish a barrier around the construction site to protect the surrounding environment and ensure that nothing within the work site is released that is not

permitted,” RTC Project Manager Garth Oksol said.

Additional work in the area will include more intensive site-specific cultural exploration as well as establishing a construction office on site. Con-tinuation of previous nesting bird surveys will be conducted and ongoing wildlife surveying as well.

The RTC has all the permits it needs from state and federal regulatory agencies to move forward. There is no additional review that is needed or that will be conducted by any regulatory agency. Standard construction permits are in the process of being pulled that will allow full construction to begin.

“The community has waited long enough. What began just over two years ago with Phase 1 — the Veterans Memorial Bridge — is now a ‘Bridge to Prosperity.’ It’s time to begin work on this much-needed roadway,” stated RTC Chair and Reno Councilmember Neoma Jardon.

The remainder of the road to be construct-ed is just south of Clean Water Way to Veterans Parkway and is about four and a half miles of the


overall five and a half mile roadway. Completion on the $152 million project is expected in late 2017 and will link Sparks to south Reno

The thoroughfare connecting the two nodes will ease con-gestion on Interstate 580 by offering an alternate route to many job sites, including Tesla’s gigafactory. Officials oversee-ing the project say it also provides numerous benefits to the environment.

Kyle Larkin, vice president and regional manager for the company’s Nevada operations, called it one of the most sig-nificant transportation construction projects ever in northern Nevada and the economic impact will be considerable.

“We’re excited to get started,” said Larkin during a recent interview at Granite headquarters, where his team and officials from the RTC provided an update on the project, envisioned by county planners for decades.

The job boost will be welcome to many in the construction industry.

“We will have up to 250 craft workers at the peak of the 28-month-long project,” said Larkin. These jobs support an additional 4,000 jobs in the Truckee Meadows when one con-siders the role of vendors, suppliers, gas station attendants and restaurant workers.

“We have 18 local subs and suppliers on our construc-tion team,” said Larkin, speaking of those will also benefit economically.

The work is funded through a regional gas tax approved in 2009. Securing right-of-way access from private and public property owners have been two of the most crucial elements of the 5.5-mile project that was first proposed in 1965.

The RTC spent much of last year finalizing right-of-way access for the project. It purchased access through Rosewood

Lakes Golf Course in the summer, and ne-gotiated access agreements with the cities of Reno and Sparks and the University of Nevada, Reno. The final piece of the puzzle involved a small section of private land through the Butler Ranch.

Discussed for decades and the focus of controversy, work on the first phase of the connector road, roughly a mile of road and a new bridge spanning the Truckee River and linking to Sparks, was completed last sum-mer at a cost of $65 million.

Four miles of the southern-most section of road connecting to Geiger Grade was built by developers and is already open to traffic as Veterans Parkway. The portion to be built by Granite would tie together the road’s already completed portions.

The Connector continues to offer a solid boost to the econ-omy, declared Gibson. “It put people to work at the bottom of the recession,” he said of the first phase of the project. One of the richest public works contracts Washoe County has seen in more than a decade, the project was not without its critics — a subject that Gibson was reluctant to discuss. Gibson said social media monitored by the RTC shows 10-1 support for the project. “People get the design. They get the importance. They get the part about generating new jobs,” he said.

Another positive he cites is the effort to address contaminat-ed soils within the project area. A mitigation project will deal with the effects of thousands of pounds of mercury that have leached into the environment as a result of Comstock-era min-ing activities.

“We are dealing with a 150-year-old environmental issue,” said Gibson, specifically in the Steamboat Creek area, south of the Truckee River. But the RTC and Granite have plans to actually sequester that mercury under the roadway to avoid contamination. The project will also create 130 acres of new wetlands planted with 600-800 trees, mostly fast-growing cot-tonwoods. A bike path is envisioned.

Economic development during and after the completion of the Connector is embodied in the project, said Gibson. “It’s a critical connectivity piece of people and freight,” he said of companies that are focused on logistics and distribution.

“We are going to grow substantially in the next 15 years and the Connector” is providing the reliever that will mean we don’t necessarily have to widen 395/580 more and we can dedicate these thoroughfares to freight traffic more and let local traffic be on the Connector.

“It’s not just about serving the Teslas of the world,” said Gib-son. Let’s not forget the little guys out there, the small business-es that are continuing to grow and locate here.” n

This is one of the intersections planned in the SouthEast Connector project, a major road building effort to link east Sparks with southeast Reno.

COURTESY GRANITE CONSTRUCTION


T he Nevada Chapter of the American Public Works Association is celebrating 50 years in the Silver State.

Established in 1965, the Nevada Chapter of the APWA exists to develop and support the people, agencies, companies and organizations that plan, build, maintain, and improve the state’s communities, said Tom Adams, northern Nevada chapter president.

“We also partner with other associations and organizations that support public works in order to meet other strategic needs and requirements of our profession, including advocacy, education, and information,” said Adams, president and principal engineer of KMR Collaborative.

Chapters in northern and southern Nevada meet twice a year in the spring and fall for two-day conferences that include technical sessions and other events.

Adams said there are 175 members in northern Nevada. The breakdown is approximately 30 percent agency professionals (RTC, NDOT, COR, COS, Washoe County); 40 percent consultant (engineering, planning, construction management, environmental); 15 percent supplier (concrete, asphalt, cement, steel, etc.); and 15 percent contractor (Granite, A&K, etc.).

The northern chapter received the 2005, 2009, 2010, 2011, 2012 and 2013 PACE (Presidential Award for Chapter Excellence) Award from APWA.

The chapter takes part in activities such as educational programs, spring and fall conferences, National Public Works Week, scholarships, Engineers Week and an awards ceremony.

A recent event, sponsored by APWA, brought Fernley Elementary fifth graders to NDOT for a tour of the facility.

“This event is part of our yearly public outreach and encourages local students to pursue careers in public works,” said Adams. n

Public Works professionals mark milestone

Students tour the Nevada Department of Transportation facility to see how public works projects unfold.

COURTESY TOM ADAMS

The Nevada Chapter of the American Public Works Association is Celebrating 50 years of supporting Public Works in Nevada!

1965-2015APWA exists to develop and support the people, agencies, and organizations that plan, build, maintain, and improve our communities. Working together, APWA and its membership contribute to a higher and sustainable quality of life.

Congratulations on 50-years of achievement.


COURTESY ALSTON CONSTRUCTION

D riven by the demand for new e-commerce distribution and logis-tics centers in northern Nevada, tilt up construction is booming.

“Tilt up is the most cost-effective method to construct a warehouse today,” said Matt Claf-ton, vice president/general manager of Alston Construction (formerly Panattoni Construc-tion) in Reno.

A prime example is the recently complet-ed 770,000 square foot Petco facility on Red Rock Road north of Reno, which broke ground just seven months ago and was reported to cost $35 million.

Tilt up construction has been in use for over a century and its popularity for warehouse buildings comes from a combination of econo-my of scale, speed of construction, low mainte-nance and long-term durability.

The process involves casting concrete walls on-site, lifting them into the building shell with a crane and securing. The roof structure horizontally supports the wall at the top, and the curb on the footing supports it laterally at

the bottom. At least 10,000 are constructed each year according to the Tilt Up Concrete Association (TCA) — that’s about 15 percent of all industrial buildings nationwide.

In a time when sustainability is critical to new construction, tilt up buildings meet many of the requirements. Concrete has energy saving thermal mass that enables the building to absorb, store and later release significant amounts of heat. That means there are fewer spikes in the heating and cooling for optimal climate control, which is important in our northern Nevada seasons.

Casting the panels on-site, using local resources, less labor and reducing fuel and transportation costs is beneficial to the envi-ronment. It also lowers the cost-per-square foot, “which averages $30 to $33,” Clafton explained.

“That doesn’t include site improvements and other nuances that are always unique to each project. Costs can vary depending on the size of the building — a 100,000- square-foot

It takes a gigantic piece of machinery to lift up thousands of pounds of slab concrete walls and move them into place. A hydraulic crane pierced the sky recently on this project in Sacramento. A similar hoisting of tilt-up panels framed the Petco Distribution Center in Reno in just a few days.

Tilt up construction booming in Truckee Meadows

By Susan [email protected]

TILT THIS!

...continued on page 9


Jay Lebel, co-owner of L & L Reclaimed Wood, and Susan Straw, sales, stand in front of a tower of wood reclaimed from old buildings that will be repurposed into cabinets, floors and other products by the company. Axe marks are visible on the wood from when it was originally rough hewn 100-200 years ago.

SALLY ROBERTS/NNBW

A trip East to buy reclaimed lumber for a con-struction project near Truckee inspired Jay Lebel to take his 30-year construction career in a new direction.

Lebel and partners Tim Lithgow and Michael Ruesch, started L & L Reclaimed Wood. It was born two years ago and his construction company, J & S Custom Homes, now specializes in projects using re-claimed wood.

“It’s something new for me and it’s fun and challeng-ing,” Lebel said recently in the office of L & L Re-claimed Wood on Freeport Boulevard in Sparks.

Environmental trends are boosting the popularity of reclaiming wood from historic barns and buildings being demolished and then repurposing the wood in new construction, remodels and cabinetry.

“Recycling is part of it. It’s why I do it,” Lebel said. “It’s very green” to reuse wood. “It’s pretty popular ev-erywhere right now,” he said.

In addition, the wood gleaned from 200-year-old structures is often denser and better quality because it was originally cut from old-growth forests.

In the L & L warehouse, stacks and stacks of old beams and panels await repurposing. The selection in-cudes black walnut, black locust, white oak, hemlock, red oak, heart pine and douglas fir.

Walking between stacks, Lebel points out special

wood purchases, such as claro walnut panels.

“When I see it, I buy it,” he said. “It’s rare.”

At another tower of wood, he draws attention to the rich color of a 200-year-old cherry beam.

He also shows stacks of American wormwood chestnut, a variety of tree that was decimated nearly to extinction by blight a hundred years ago. The only way to get the uniquely patterned wood is by salvaging it from 18th and 19th century buildings.

Most of the wood L & L acquires comes from 200-year-old barns in the Eastern U.S.

“The real old ones are back there,” Lebel said.

L & L does pick up some wood locally. Recently they acquired 100-year-old fir from a building that, more recently, had served as a World War II glider assembly warehouse on Valley Street in Reno.

Lithgow is the buyer for L & L. He travels around the United States selecting wood from historical struc-tures, old barns and houses being torn down. His work includes hand-selecting the wood for color, character and integrity.

Once in the L & L warehouse, workers carefully ex-amine each board and beam for nails. “It’s old, it’s full of nails and hard on equipment,” Lebel said.

“There’s a lot of nail pulling going on here. As much as we try, we don’t get them all.”

RECYCLING

LUMBER with a historyBy Sally [email protected]


Reclaimed wood gives a finished vanity unique texture and style.

COURTESY L & L RECLAIMED WOOD

Michael Ruesch, L & L Reclaimed Wood’s cabinet-

maker, shows how reclaimed lumber

will be placed on a cabinet frame.

SALLY ROBERTS/NNBW

Once the nails are pulled, the wood is ready for mill-ing. Using specialized milling machinery, the reclaimed wood is cut into boards.

Whether rough hewn, or fine finished, the reclaimed wood provides a unique char-acter to cabinets, doors, stairs, baseboards, furniture, floors and paneling. Each product is made to order and one of a kind.

Michael Ruesch is the team’s master cabinetmaker. He started working with wood with his dad when he was 8 years old. He has been a pro-fessional woodworker since 1990.

A project with reclaimed wood “has a lot of detail in it. It’s a lot of fun to work with,” Ruesch said.

“If people dream it up, we’ll build it.” n

building will be different from one that’s 500,000 square feet—and the typography of the site is a factor too.”

The TCA indicates tilt ups are $2 to $5 per square foot less expensive than concrete block and stucco construction—a pret-ty big savings on a building over 700,000 square feet.

Concrete is also strong and resistant to damage, so these buildings stand up well to wear and tear over time, in part be-cause there are fewer joints. That means less cracking, result-ing in decreased repairs — a plus for the owner’s bottom line and another environmental advantage: A tilt up building can last 100 years, the TCA website notes.

As an added bonus, if a building is renovated, expanded or repurposed, the walls can be reused.

Aesthetics offer additional appeal for tilt up construction. “The finished face is both architectural and structural,” Clafton said.

There are now a variety of techniques available to add color

and texture, making the buildings more functional and attrac-tive inside and out.

There are some challenges with the tilt up method, primarily in the form of height limitations and roof specifications. The good news is the previous standard clear height for a tilt up building was 24 feet, but it’s now 36 feet, according to Clafton.

Also, to accommodate weather patterns in the Reno area, an optimal roof system must be able to effectively handle snow and rain, requiring a design that “undulates with peaks and valleys, so it drains properly,” he added.

Alston is so positive about the economic outlook for northern Nevada, especially because there’s every sign that e-commerce companies are expanding in the region, Clafton said they are breaking ground in June on a 700,000-square-foot spec build-ing in the North Valley they’ve named Amber Meadows.

“It should be completed in early 2016,” he said. Another 200,000-square-foot building on Red Rock Road should be finished by the end of the year.

On both projects they are working with Doug Roberts at Panattoni Development (see related story on page 12). n

Tilt up construction...from page 7


In his own words: Kyle Larkin

Northern Nevada Business Weekly: Tell us about Granite Construction and the duties of your position.

Kyle Larkin: Granite is one of the nation’s largest infra-structure contractors and construction materials producers, specializing in complex infrastructure projects, including transportation, industrial, commercial and federal contract-ing. Granite is an award-winning firm in safety, quality and environmental stewardship, and has been honored as one of the World’s Most Ethical Companies by Ethisphere Institute for six years in a row. Granite has been in Reno since 1980, and has built many of northern Nevada’s critical infrastructure projects. As regional manager, I am responsible for all opera-tions of Granite including providing leadership oversight and strategic direction to ensure the delivery of short- and long-term goals. My primary objectives include setting the vision and standards for financial, safety, and environmental perfor-mance; business growth by acquisition and internal, organic means; and employee development.

NNBW: How did you get into this profession?Larkin: My dad was a software engineer, and I struggled to

see myself being indoors all day like him. As a child, I was al-ways coming up with things to build and likely drove him cra-zy with half-baked ideas and projects. He eventually required me to have a little notebook to develop plans, a materials list, and an estimated cost for projects prior to starting anything new. When I was struggling to choose a college and major, my parents reminded me of the notebook, my passion to build things, and thought the Construction Management major at Cal Poly was a great fit — they were right.

NNBW: What do you enjoy most about working in your field?Larkin: Early in my career I would have said building chal-

lenging projects, but now my enjoyment comes from working alongside the innovative, talented, and hard-working people found throughout the construction industry.

NNBW: What’s the most challenging part about your job?Larkin: For me, it’s remembering to take some time to cele-

brate our successes as a team and ensure we are all having fun along the way. No two days in this industry are ever the same. Everyone works really hard, and it’s easy to let the day-to-day challenges and opportunities consume us.

NNBW: Have any advice for someone who wants to get in this profession?

Larkin: One of the great things about construction man-agement is the relatively low barrier of entry, where a college degree in construction or engineering is certainly an advan-tage initially, but not necessarily a requirement for long-term success. My advice would be to first spend as much time in the field as possible to learn how the work gets built, as this knowledge will serve as a foundation for your career. As you rise in an organization, you can’t go back to get that field ex-perience. I would also encourage construction professionals to be selective in choosing the company or organization they join; fortunately, there are many great firms here in northern Nevada.

NNBW: What was your first job?Larkin: At 12 years old, I convinced my parents to let me

have a paper route and I learned quickly how much work it

THE BASICS

Name/title: Kyle Larkin/Vice President & Nevada Region Manager/Granite ConstructionNumber of years with the company: 19 yearsYears in this profession: 19 yearsEducation: BS, Construction Management, Cal Poly San Luis Obispo. MBA, U Mass AmherstFavorite movie: One of my first and best jobs was as a caddy at the local country club, so “Caddyshack” has always been my favorite.Favorite musical group or genre: I enjoy country music and alternative music, influenced from my time living in the central California coast region. Spouse, kids or pets: My wife, Laural, and I have been married for 17 years, after meeting in college. Our oldest son, Craig, is finishing his freshman year at Bishop Manogue and our youngest son, Ryan, is finishing his 6th grade year at Little Flower. We have a goldendoodle, Nick, and a labradoodle puppy named Sam.


entailed. After a long two years and a close call with two Ger-man Shepherds, I knew it was time to move on to caddying and teaching tennis for the city’s recreation department.

NNBW: What are your hobbies? How do you spend your time away from work?

Larkin: I spend almost all of my free time with my family. Most of it is spent either at a soccer match or lacrosse game, at Mt. Rose skiing, or just doing things together. I wouldn’t want it any other way.

NNBW: Do you have a favorite vacation spot?Larkin: For the last 15 years we have rented a beach house

just northwest of San Luis Obispo for the 4th of July week. Our extended family also rents a house for the same week, and some years we have had over 20 family members there. It’s great to be able to go back to where Laural and I met, and share our favorite places and activities with the boys. We also look forward to the fireworks from the pier and the small town parade.

NNBW: Last concert or sporting event attended?Larkin: It’s spring lacrosse season, so we have been watching

Ryan’s Mt. Rose Rattlers U13 team play a couple games each week. It’s a great sport to watch!

NNBW: What did you dream of becoming as a kid?Larkin: I never dreamed of a specific career, but I did dream

of a lifestyle. After caddying for a couple years, I worked my way into a part-time job at the country club’s golf shop. It was a great place to work and really taught me how to relate with all kinds of people. It also afforded me the opportunity to play a lot of golf. Outside of high school, I spent every minute of my time at the club working or golfing, and I thought that was the life for me.

NNBW: If you had enough money to retire right now, would you? Why or why not?

Larkin: My grandfather is 95 and is an active professor. He just taught an undergraduate course at UCLA in the same room as his first class over 55 years ago, so he’s been setting a high standard for my family. Both of my parents choose to work and not retire, as well. So, even if I could retire right now, I wouldn’t, just so I wouldn’t always have to “hear about it” — which I definitely would.

NNBW: Why did you choose a career in northern Nevada? What do you like about living/working here?

Larkin: My older brother encouraged me to look at Granite for employment, as he was familiar with the company and its reputation as a socially responsible contractor. I was able to get an internship with Granite here in Reno and I came back after graduation. Laural and I enjoy the special sense of com-munity here, the access to Lake Tahoe, and we have found it to be an ideal place to raise a family. n

Supporting our members by enhancing

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industry and quality of life through

Skill, Integrity and Responsibility

for over 75 Years!

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5400 Mill Street, Reno, NV 89502 | PO Box 7578, Reno, NV 89510 Phone: 775-329-6116 | Fax: 775-329-6575

www.nevadaagc.org


Panattoni spec project is leap of faith for developer

P anattoni Development is demonstrating its faith in northern Nevada’s robust economic recovery by launching the first phase of the biggest spec project the region has seen to date.

Located near the intersection of Lemmon Valley and 395, the North Valleys Commerce Center will ultimately offer 1.4 mil-lion square feet of space.

“This speaks volumes about our belief in Reno’s future,” said Panattoni partner Doug Roberts, who oversees all Nevada op-erations. The project, which is expected to break ground next month at an estimated total cost of $75 million, could add up to 300 new construction jobs.

There are some very good reasons why, for Panattoni, the risk of constructing such a large project, without prior tenant com-mitments, is worth taking.

The prevailing economic wisdom is that the Reno area will continue growing as an e-commerce distribution and fulfill-ment hub for the western states, as well as a base for operations and logistics.

Northern Nevada is actively wooing businesses with the appeal of tax advantages, a solid transportation infrastruc-ture and reasonable costs. It’s anticipated that the demand for bigger industrial space will steadily increase and, for the near term, will likely outpace the supply.

Roberts indicated his company looked at three key factors in evaluating the viability of the project. Rents in the marketplace

have been steadily climbing. Industrial space rents are up more than 20 percent from last year. During the recession, rates went as low as 25 cents per square foot and now the average is 33-37 cents, according to state economic development reports.

“We also looked at if there are enough new tenants coming in and whether there is continuous growth,” Roberts said. He points to the presence of Amazon, GFI, Apple, Barnes and Noble, Petco and Zulilly as examples of the size of companies choosing northern Nevada.

Reno’s proximity to the I-80 corridor for trucking and access to cargo services at the airport is attractive to large retail and e-commerce operations. More efficient transportation costs along the entire supply chain is essential to a sustainable busi-ness model in these sectors.

The first structure to be erected in the three-phase plan will be built by Alston Construction of Reno (see related story) and will include many of the latest advances in sustainable con-struction. “We are expecting it to be taller (36-foot clear space) and more energy efficient than other buildings,” Roberts said.

That includes using LED lighting instead of fluorescent, which requires 50 percent less power and will have a longer life. The way the building will be configured should appeal to e-commerce companies so they can stack higher or use pick modules for maximum utilization of floor space.

As an international developer with large capital partners, Roberts says that seeing the potential, Panattoni investors were willing to capitalize on the opportunities Reno has to offer. The size and scope of this spec project really signals a new phase of economic growth for northern Nevada. n


An artist’s rendering of the North Valleys Commerce Center, which will ultimately offer 1.4 million square feet of space.

COURTESY PANATTONI

DEVELOPMENT


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Northern Nevada Real Estate Journal>>Northern Nevada Real EstateVolume 1,

Issue 2A special publication brought to you by the

COMMERCIAL | INDUSTRIAL | RETAIL | LAND | OFFICE

Monday, July 21, 2014 | www.nnbw.comBy Rob [email protected]

Investors of all types continue to scour the Reno-Sparks market in hopes of finding deals paying above-average returns over their core markets. Aiman Noursoultanova, senior vice president of the Reno

investment properties Group with CBRE, says the Reno-Sparks market on average is 100 to 200 basis points higher than the Sacramento Valley and San Francisco Bay Area markets, which is drawing flocks of investors over the Sierra. “The market is attractive because in essence we are in a growing market,” Noursoultanova says. “We have very little government scrutiny and job prospects are really strong. That translates into rental growth, and when we have good growth in buildings occupied by tenants with fairly long-term leases, investors are coming into our market.” Yields in the Bay Area tend to run between 4 and 5 percent, she adds, which can place a great deal of investment money at risk for a very small rate of return. Yield in Reno is averaging between 6 to 8 percent, which is bringing more investors than ever before over the state line. “To earn that extra 200 points on the investment is very attractive,” Noursoultanova says. “In the Bay Area there are so many folks investing that demand is strong and it’s hard to find good product or any type of property investment. We are so small that we create more opportunities for them to consider, and with the added bonus of a better return we become very attractive. There are a lot of folks looking for deals right now.” Investors have been a mix of large institutional investors and small private investors in the $1 million to $8 million range, Noursoultanova

adds. That’s a big change from years past, when financing was so tight that the only deals getting done were to all-cash investors. Multi-family continues to be the hottest property type for several reasons. Foremost among them is the availability of smaller investors to secure bank financing to carry the bulk of costs for apartment deals. Another reason: high occupancy rates at apartment complexes spreads the financial risk among that large pool of tenants versus office buildings with a small handful of tenants, Noursoultanova notes. Office sales aren’t overly strong, adds Melissa Molyneaux, vice president with the office properties group at Colliers International, but the few properties up for sale are drawing multiple bids. Colliers in 2012 listed a garden office property in South Reno that drew zero offers, but when the property was relisted earlier this year a pool of qualified buyers had put in offers before Colliers even finished creating marketing collateral for the property. The change reflects increased confidence about the economy of Reno-Sparks, she says. “That was really surprising,” Molyneaux says. “We had buyers coming out of 1031 exchange and

had five offers — I got an inquiry almost every day on it. People are finally able to sell other properties and get equity, and there’s not a great abundance of properties in primary markets. Now that our economy has improved we no longer are such a risky investment.” Sales in the local office market primarily have been to local private investors, Molyneaux adds, since institutional investors on the whole tend to seek industrial or multi-family deals. And though sales volume for office properties is down, that’s not

necessarily a bad thing, Molyneaux adds. There’s much less bank-owned real estate in the market, and that will lead to a rise in arms-length transactions and office values. Noursoultanova says that the continually improving economic climate of the Truckee Meadows is helping all investment brokers in the area. “We have job growth, companies coming to our region, and properties occupied by tenants. That really helps us sell our region of the state to investors,” she says. ●

Investment activity continues to heat up

This garden office property in South Reno originally was listed in 2010 and generated little

response. A few years later, bids came in quickly from investors seeking tax-deferred

investment opportunities when the building was relisted by Colliers. Rob Sabo, [email protected]

This building in South Meadows, purchased on the courthouse steps, was one of

few large bank-owned properties left in the region. Rob Sabo, [email protected]

The market is attractive because we are in a growing market. We have very little government scrutiny and job prospects are really strong.– Aiman Noursoultanova

What’s Inside…Land

3

Office

4

Retail

4

Downtown Office

6

Tenant Improvements

7

South Meadows Office

8

Powning District

9

Broker Profile

10

Question & Answer

10

Downtown Development

11

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COURTESY KIRKWOOD RESORT DEVELOPMENT

Modern mountain homes S taying ahead of the competition in the

luxury second-home business means coming up with functional, cost-effec-tive building innovations and that’s

exactly what’s going on in Kirkwood, Ca., with the new Timber Creek townhouses.

The location is optimal, right in the village by the Timber Creek high-speed chairlift, so each of the 21 homes will be fully ski-in, ski-out, according to Peter Forsch, CEO, Kirkwood Resort Development.

The first two offered are 2371 square feet on three levels, four bedrooms plus a loft with four and a half baths, including a two- car ga-rage and priced at $989,000. The concept is ideal for two families to share.

Kirkwood, which is located on top of the Sierra Crest, 35 miles south of Lake Tahoe, is known for the deepest, driest snow around and some of North America’s most diverse and challenging terrain. Locals say, “Kirkwood offers big mountain riding with a small town attitude” and many prefer it to the other, much bigger Vail Resorts. In the summer it becomes something of an alpine playground offering rock climbing, hiking, mountain biking and

horseback riding with kayaking and fishing close by.

Situated to maximize views of the resort’s iconic Glove Rock, Thimble Peak and Red Cliffs, what will set this new development apart is sustainability. Key to the process is the fact that the units are modular and produced by Irontown Homes in Spanish Fork, Utah, one of the premier builders of high-end, cus-tom- manufactured homes.

Forsch said they made the decision to build offsite to save time and efficiently manage con-struction costs. “It’s 10 to 20 percent less ex-pensive this way and we can have a high-qual-ity finished product in six months.” Typically construction of a mountain home using more traditional methods can take up to two years to complete due to weather and inspection delays, materials availability, and shortage of skilled labor, he indicated.

The advantages of this factory-built ap-proach are numerous. Budgeting is more pre-cise and manageable. The builder inspects and maintains quality control at every step, which also means reduced costs and environmental impact from construction waste because they

An artist’s rendering of the Timber Creek development, which is now being built.

Smart technology,

sustainability hallmarks of

Timber Creek development



recycle on a large scale.

There is economy of scale with Irontown purchasing essen-tial materials in large quantities. Shortening construction time and keeping on a tight schedule in the factory also can decrease financing costs for the developer and ultimately, the buyer.

In spite of bringing the finished modules to Kirkwood for fi-nal assembly from Utah, Irontown General Manager Kam Val-gardson says his process is a highly cost effective construction method for the Reno-Tahoe area, which is why their business is expanding here. “If Kirkwood is roughly 100 miles from Reno where you’d have to make hundreds of trips to get most of your materials to build on site, even by driving our product on 10 semis from our factory (about 640 miles) we’re still saving money and fuel.” He says the modular buildings cost between $130 to $160 per square foot to build with additional site im-provements and other costs added in.

“That’s still a great deal.”

Forsch sees these construction advances as a turning point for his industry. “I’m convinced that this kind of modular building will increasingly be used in mountain resort construc-tion,” Forsch said. It solves a multitude of issues and in fact has been used for some of the expensive luxury homes being built at Martis Camp and other places in Truckee.

Each Timber Creek modern mountain retreat has been de-signed to be energy efficient, reduce maintenance and utilize renewable resources. The townhomes are intended to cut energy consumption by leveraging natural light, shading and passive heating and cooling.

According to Valgardson, they use eco-friendly materials such as low VOC paint, bamboo and tile floors, strong exte-rior siding made from post-industrial wood chips, formalde-hyde free insulation and energy efficient windows—everything chosen to maximize durability as well as enhance the design. Every Timber Creek home is equipped with a smart technology system that allows owners to control and monitor heating with a NEST system thermostat. Lighting, smoke and fire alarms and alerts, appliances, entry, security and video cameras can be managed right from a smart phone or computer.

Despite the impact of the ongoing drought, Forsch and his team made the decision to begin this project because all the signs were pointing to economic recovery.

“Personally I believe we’re at the beginning of significant building growth,” he said.

“In Northern California and the San Francisco Bay area (which are a target demographics) the market is strong and the economic indicators are good. We want to be the first ones out there to offer a new product.” n

16 • BUILDING NORTHERN NEVADA SPRING 2015

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