‘Very exclusive, very high end’: Firm unveils vision for $50 million property in South Reno
EDITOR'S NOTE: This is the sixth in a 6-part series of stories in the NNBW's newest quarterly edition of the Northern Nevada Real Estate Journal, which looks at various statistics, trends, project updates and more regarding commercial real estate across greater Reno-Sparks. See the full slate inside the Wednesday, Oct. 28, print edition of the NNBW.
- Part One: Amid Northern Nevada retail struggles, innovative projects push ahead
- Part Two: ‘Time will tell’: Reno-area developers, contractors prep for uncertain winter as pandemic impacts continue
- Part Three: Reno-Sparks multifamily housing demand remains strong heading into winter
- Part Four: As home sales thrive across Reno-Sparks, land supply continues dive
- Part Five: Dissecting key elements of Reno’s zoning code update, which would alter development, land use
RENO, Nev. — Bryan Drakulich remembers a time when he felt lucky to get one viable prospect for a commercial real estate listing in Northern Nevada.
With greater Reno-Tahoe transforming into a hotbed of economic vitality and population growth over the past several years, those days are long gone.
“It’s changed dramatically,” Drakulich, founder of Drakulich Commercial Partners, said in a recent phone interview with the NNBW. “Obviously, with the business growth, the job growth, the population growth, it’s a very exciting time.”
Even amid the economic uncertainty caused by the coronavirus pandemic, Drakulich is seeing inquiries roll in like clockwork for the company’s latest mega listing, St. James’s Village and Sierra Reflections.
Entering the market for $50 million, St. James’s Village and Sierra Reflections is a 1,130-acre patch of land stretching between Reno, Lake Tahoe and Carson City that includes “high desert, heavy forest, (Washoe) lake views, and everything in-between,” Drakulich said.
The properties, featuring 1,158 approved home sites, are situated with fast access to U.S. Highway 395, Interstate 580 and the Mount Rose Highway (431).
St. James’s Village, the western half of the acreage, is a private, gated community consisting of 444 home sites — 224 already sold, 220 approved for development — with a minimum lot size of 1 acre, according to the company.
Sierra Reflections, on eastern half, is a 758-acre parcel that was approved by Washoe County in 2006 for about 800 single-family homes and 150 townhomes. Years ago, the owners’ original plan for the open land was a hotel-casino-conference center and Tom Fazio-designed golf course.
“And then I-580 happened,” said Drakulich, noting that I-580, which snakes through the St. James’s Village and Sierra Reflections properties, pulled the region closer together upon its final completion in 2017 between Reno and Carson City. “They rethought it and had it entirely remapped for housing.”
Drakulich, who hosted a property revel event Oct. 8 for media and community partners, said he expects the townhomes for Sierra Reflections to be around $450,000 and the single-family homes to range from $550,000 to $800,000 or more.
He said he expects St. James’s Village to remain “fully-gated, very exclusive, very high-end” home sites.
“It’s going to be a beautiful mix of properties,” he continued. “I’m excited about the fact that Reno needs that instead of a cookie-cutter, every lot’s 8,500 square feet, and you build 200 of those homes. This is a mix of 8,500 square feet all the way up to an acre.”
Drakulich said inquiries into the property have ranged from a hedge fund from San Diego to a “very, very successful builder” from Southern California to a private equity firm from Florida, among others.
“We probably have 11 different viable prospects,” he said. “That doesn’t mean we’re going to get 11 offers, that doesn’t mean we’re going to get one offer. But, 11 viable investor, developer, private equity firms, etc., and each and every one of them can perform on a property at this price point.”
He added that a buyer could decide not to develop the land, though given the region’s accelerated growth and rising housing demand, leaving the properties untouched, one might argue, would be unlikely.
“We believe the timing is excellent,” Drakulich said. “We need housing. That doesn’t mean I sell it tomorrow. Projects like this take time — lots of vetting of the buyers, and of the project itself. But, we’re excited about it. And we see a phenomenal opportunity, and we’re thrilled to have that opportunity.”
Construction could begin next year and require about 500 to 600 workers, with a permanent workforce starting at 150 to 200 people with potential to expand.