Tolles Development acquires six-building portfolio in Reno
The face of downtown Reno is changing rapidly, and Tolles Development Company now has a significant role in the metamorphosis by completing the landmark acquisition of a portfolio containing six Reno office buildings totaling 140,000 square feet.
Par Tolles, a veteran commercial real estate executive and founding principal of Tolles Development Company, describes the properties as primarily in Reno’s vibrant downtown core. The buildings, acquired from the portfolio of AMH Properties of Reno, include:
Three iconic buildings (241 Ridge, 201 Liberty and 275 Hill) in the heart of Reno’s downtown financial district;
Two buildings in the boutique Washington Street commercial neighborhood near the popular 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.
The AMH portfolio was assembled by Alex Hose and his wife, Marion Tavenner Hose. A much-respected leader of the commercial real estate sector in Reno, Marion unexpectedly passed away in early 2016, leaving Alex to determine the future of the portfolio.
“Alex and Marion Hose have left an indelible mark on Reno’s downtown,” says Dan Oster, a principal with NAI Alliance and one of the brokers representing Tolles and AMH Properties in a press release. “I can think of no better steward for their legacy than Par. He shares their vision of not just what a great downtown we have, but also how much better it can become.”
Tolles says the acquisition reflects his belief that the Reno office market is poised for strong growth. Even though the city’s population is expected to explode—some say by at least 50,000 to 100,000 people in the next five years—no speculative office space has been added to the market for at least a decade. The newly-acquired portfolio helps put Tolles on the cutting edge of this growing market.
“There is going to be an increased demand for your traditional finance, insurance and real estate services just to support this surge in population,” said Tolles. “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.”
The evolving vibrancy of the CBD will downtown office space will be in particularly high demand, according to Tolles.
“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. 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,” he tells.
Tolles was closely involved with downtown properties during his tenure as president of Basin Street Properties, which developed the downtown Courtyard by Marriott and redeveloped the long-vacant King’s Inn hotel-casino into the upscale 3rd Street Flats.
Before launching Tolles Development Company in mid-2016, Tolles spent 20 years in corporate real estate developing multiple industrial and office projects throughout Nevada.
“Our acquisition of this portfolio of office properties makes an important statement about our belief in the future of Reno,” Tolles said. “We are confident that this portfolio will provide a solid foundation for the growth of our company.”
Dan Oster and Chase Houston of NAI Alliance represented both Tolles Development Company and AMH Properties in the transaction.
Gaston and Wilkerson Management Group of Reno will manage the portfolio on behalf of Tolles Development Company.
Heather Ashbridge, who started with Nevada State Development Corporation in 2008, previously served in several roles with the organization, including assistant vice president and loan officer. She is based in NSDC’s Reno office.