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Under Deconstruction: University of Nevada South Neighborhoods

09 Thursday Jan 2020

Posted by Paul Kiser in About Reno, Business, College, Economy, Education, Generational, Government, Higher Education, History, Housing, Life, Nevada, Politics, Pride, Reno, Universities, University of Nevada

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Board of Regents, College, higher ed, higher education, housing, I-80, Interstate Highways, John Evans, neighborhood, neighborhoods, Reno, University of Nevada

A Different Type of 20/20 Plan 

The neighborhoods of the University of Nevada in Reno start 2020 with 20 structures recently demolished or moved and 20 more standing vacant, waiting for their demise. Not all of it is directly connected to expansion by the University, but houses in some of Reno’s oldest subdivisions are vanishing for university-related business.

The end is near for neighborhoods on the U of Nevada southside

For the last few years, structures adjacent to the university, primarily houses, have been torn down. The neighborhood on the west side of Virginia Street has seen significant changes and now the southern neighborhood has become a part of the makeover.

Southern Loss:  Under the shovel of progress

Southeast – University of Nevada Engineering Building

In 2018, the University began tearing down nine houses on the west side of Evans Street. These homes adjacent to the southeast edge of the campus were part of the University Heights subdivision but most of them have been owned by the University for many years. A large new building for the College of Engineering is replacing the nine homes. A tenth home remains standing at the curve of Evans on the southeastern corner of the campus.

University Heights subdivision homes replaced by Pennington Engineering Building (Home marked with the yellow line remains standing but is owned by the university.)

The College of Engineering has grown significantly in the past decade (1,595 students) but that growth has slowed to an increase of only 170 students in the past four years (Fall 2015 to Fall 2019.) University administrators have stated that the new Pennington Engineering building is too accommodate the growth.

The New Pennington Engineering Building in University Heights 

Evans Northeast Addition – Abandoned and Boarded

CCC-Reno LLC purchase of Evans Northeast Addition subdivision

In 1906, Elizabeth Evans, widow of John ‘Newt’ Evans, filed for the Evans Northeast Addition subdivision. Most of the homes were not built until the 1930s; however, many were torn down in the early 1970s because of the construction of Interstate 80 (I-80.) Only one small block remains of the subdivision north of I-80 and west of the railroad tracks. That block is bounded by Record Street to the east, Evans Street to the north and west, and 9th Street to the south.

Homes of the Evans Northeast Addition neighborhood

On 5 March 2018, Capstone Collegiate Communities (CCC-Reno LLC,) a company located in Birmingham, Alabama, purchased all of the remaining properties. According to Washoe County Assessor data, the purchase for the homes (excluding the commercial property) was 180% of the current (Jan 2020) Zillow.com estimated value. The Alabama buyer paid over $5.5 million for all nine properties.

Acquisitions by Capstone Collegiate Communities, an Alabama corporation

After purchasing the properties, Capstone attempted to have several public roads abandoned by the city to expand the property. One of the proposed options was to close Evans Avenue. This would have effectively eliminated access to the eastern side of the University for those coming from I-80 and would have eliminated the most direct access to I-80 from the neighborhoods east of the university.

Fortunately, that plan never came to a vote by the Reno City Council; however, Capstone did secure more land by convincing the City Council to abandon a small right turn lane and its adjacent island.

Although Capstone Collegiate Communities have owned the properties for almost two years, it has been reported that they do not intend to begin construction until the Summer of 2021. It is unclear when the existing structures will be demolished. 

Evans North Addition – One of Reno’s Oldest Neighborhoods

For many years, the University has expressed frustration with the look of the motels and properties of the block between the campus and I-80. They expressed a desire to expand into that block and create a gateway to the University.

The house at 843 Lake Street was built in 1932. One of 23 properties now owned by U of NV

The irony is that this neighborhood was one of the first planned neighborhoods in Reno, and at one time it was known as one of the nicest neighborhoods. Known as ‘Professor’s Row,’ many homes were demolished in the 1970s to make way for I-80. This attracted the small hotels to fill in the block along Virginia Street that became unsightly as they aged.

One of the post-Interstate hotels on Virginia Street that is now slated to be destroyed.

It is also a twist of fate that the University is now seeking to eliminate the subdivision known as the Evans North Addition. This subdivision was established in 1879, by John ‘Newt’ Evans and his brother. John Evans was also the person who helped to convince the legislature to move the University of Nevada from Elko to Reno in 1885, and who also sold the land to the University.

U of NV Parking Garage and Business Building

Through purchases and donations, the University has acquired 23 properties to build a new parking garage and Business building. Construction is planned to begin later this year.

University of Nevada acquisitions for the parking structure and Business building

College of Business has also experienced significant student enrollment since 2009 (+1501 students;) however, the growth has slowed in the past four years with only 216 more students than in the Fall of 2015. The current building was built in 1982 and will be 40 years old in 2022.

RTC Steps in for the University

Virginia Street has been the focus of discussion as the motels in that area have been the source of crime and visual unattractiveness for the city and the University. Last Fall the Regional Transportation Commission (RTC) announced that they had purchased three of the five properties along Virginia Street between the University and I-80. The intent of the purchases is to create a transit hub, primarily for the benefit of the University.

RTC has the power to use eminent domain; therefore, the other two properties will either have to negotiate a fair price or face a legal battle that they will likely lose. The motels on the east side of Virginia have been abandoned and a construction fence placed around them.

Unrelated to the RTC project, two additional structures have been demolished at 9th and Sierra Streets, including a vacant sorority house; however, there has been little, if any, public announcement of the future of these properties. 

The Death Blow

The loss of these neighborhoods was really initiated by the construction of Interstate 80 in the 1970s. Quiet historical homes nestled at the foot of the University were no match for a major interstate artery through the middle of their neighborhood. If the alignment of the Interstate had been along the same route as the existing Highway 40 it might have given the Evans’ subdivisions an opportunity to survive. We will never know.

But now the last evidence of some of Reno’s original neighborhoods will be swept away. Unfortunately, hindsight is always 20/20.

Housing Prices Edge Closer to Catastrophe

04 Sunday Feb 2018

Posted by Paul Kiser in About Reno, Business, Crisis Management, Customer Service, Economy, Ethics, Generational, Government, Government Regulation, History, Housing, Real Estate, Taxes, The Tipping Point, United States

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2007-09 Recession, California, Colorado, Disaster, economy, home prices, Homes, housing, investment owner, Massachusetts, median home price, Nevada, owner-occupied, real estate, Recession, recession of 2018, United States

For the last twenty years, the United States has been building a tower of paper wealth. Over time the paper value of homes on the market has far outpaced inflation and wage growth. The current realty market has little connection to reality and we are on the brink of a housing catastrophe.

Price With No Reality Check

The real estate market is inherently flawed. Some claim that it is a perfect example of supply and demand, but that is not accurate. Real estate is the perfect example of a capitalistic market where common sense and ethics are overlooked because greed has blinded the people involved.

Prices exceed the bubble of 2007

Home Prices Heading Toward a Cliff

Housing prices are not governed by a person’s (or family’s) ability to pay. They are governed by a real estate professional who has a financial interest in driving the price up, and an owner that wants as much money as possible. The buyer taking all the risk and if the housing prices don’t continue upward, they lose.

So why would anyone buy a house when prices are already too high?

The ‘Investment’ Loophole

Historically, the one house, one owner or owner-occupied concept kept a check on housing prices. If the buyer couldn’t pay the mortgage, he or she would lose their home. That was a big risk. Today’s investment buyer risks little if anything if they can’t pay a second home mortgage. She or he may lose the home if the investment fails but is a loss of potential future revenue and not a personal crisis.

Investment housing creates artificial shortages because one owner can own multiple homes, removing those from the overall inventory. The lower the supply, the higher the price. In 2016, the number of owner-occupied homes in the United States was 63.6%. California’s owner-occupied rate is 55.3% and at $524,000, its median home price is over double compared to $206,300 for the United States.

Median home price in four cities compared to U.S. average

Another 2007?

The current median price for a home in the United States is higher than it was during the housing bubble in 2007. Any shock to the economy would erase the paper home value and flood the market with another round of investment homes being dumped on the market.

It is a crisis that is easy to anticipate, but no one does. When the next recession hits the United States will once again suffer through a massive drop in housing prices as multi-house owners dump their investment homes and walk away.

[COUNT TO 500: 493rd Article in PAULx]

Five Signs That Should Be A Dealbreaker When Purchasing A Pre-owned House

13 Tuesday May 2014

Posted by Paul Kiser in Business, Customer Relations, Customer Service, Ethics, Honor, Lessons of Life, Management Practices, Public Relations

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buying, home, housing, housing costs, housing prices, investment, Money, price, realtor, realty, Selling, value

Greed is NOT good when purchasing a home. The ethics of selling a house have reached new lows and some realtors are little more that used car dealers looking to take advantage of the gullible and the inexperienced. Here are five things that should encourage you to walk away from a sale.

The Angry Realtor
Regardless of the circumstance, the sale of a home should not be a cause for anger. Terms are either acceptable or not, and an overly emotional or condescending realtor is a good indication that he or she is trying to distract the buyer (and sometimes the seller.) The ethical realtor understands that buying a home is one of the big decisions in life and everyone should be happy when the check is exchanged.

Unfortunately, the past decade has seen ruthless and unethical realtors gain a foothold in an otherwise, honorable profession. If a realtor accuses you of being unreasonable, they may be trying to attack your sense of self and create doubt so that you’ll back away from your convictions. Again, the terms are either acceptable or not, and if not, a counter offer or a polite decline are the only appropriate responses.

Buying a home can be a win-win, or win-lose depending on the ethics of the seller

Buying a home can be a win-win, or win-lose depending on the ethics of the seller

Flipped Houses Tricks
Buying a cheap house, fixing it up, and reselling it used to be an honorable vocation. It is no longer.

When profit is the primary motive, ethics of the seller and their realtor become meaningless. Anything in a house that needs fixed or replaced will likely be done at the lowest price with the least amount of quality and work. Here are some tricks in remodeling for profit that you should be wary of when buying a home:

Single pane, aluminum frame windows are great if you like high heating bills and wasting energy

Single pane, aluminum frame windows are great if you like high heating bills and wasting energy

  • New windows trick – Insulating dual pane windows are a standard in today’s home. Homes with single pane windows should have been updated in the during the last 20 years. Rather than updating all the windows, unethical sellers will only replace the windows on the front of the house, which improves its curb appeal, but doesn’t fix the problem.
  • Landscaping trick – Landscaping is a key indicator of how the house was maintained. People who didn’t take care of their yard, probably didn’t take care of their house. The unethical seller will plant a few new trees or bushes, and some decorative stone to cover the weeds and dead lawn. If everything looks new, ask about the drip system for the plants. If their isn’t one, then you know they are just trying to disguise poor maintenance with rock and mirrors.
  • Plumbing fixtures trick – New toilets and faucets make a house look updated, but that can mean it is updated. The unethical seller will use the cheapest toilets and fixtures at Home Depot or Lowe’s and pay an unlicensed handyman to install them on the lowest bid. Run every faucet, flush every toilet, and look for leaks, and/or sloppy installation.
  • New carpet trick – Worn floors and carpet will cause most buyers to walk away from a house. Enter cheap tan carpet. The quickest and cheapest fix is inexpensive tan carpet. A house that has new tan carpet gives the feel of a well-maintained home, but this should cause the potential buyer to look even closer at the home. It is worth the trip to a carpet store before a buyer begins home shopping. A home buyer should know the look and feel of high quality carpet versus cheap tan carpet.
  • Electrical outlets trick – A home with ungrounded, (AKA:  two-prong outlets,) is in desperate need of updating. It means that the house should be rewired (See Outdated Systems.) To disguise this issue, the unethical seller will change the two-prong outlets with three-prong, (AKA:  grounded) outlets, but they won’t replace the wire, nor will they have run a grounded wire to each outlet.

Bidding Wars
Bidding wars on a home is a win for the seller and always a loss the buyer. Home buying is not a game. The pressure of people bidding against each other drives the price up, and the value down. Walk away from a bidding war.

Getting a great deal is a matter of being in the right place at the right time. By shopping for homes over a period of months, the chance of being at the right place and time increases. There is a name for people who expect to spend only a week looking for a new home: Suckers.

Outdated Systems
Because everything wears out, and because newer house systems (heat, light, plumbing, electrical, appliances, etc.) are more efficient, buying a home with outdated equipment means, 1) that the previous homeowner didn’t do the maintenance they should have, and 2) the real cost will be much higher as you will be burdened with the cost and inconvenience making it current. Here are some systems you should ask about before you buy:

  • Water Heater Tanks – The life span of most water heaters is ten to thirteen years. If the heater is older than 2001, it needs to be replaced.
  • Furnaces – A well-maintained furnace can last 25 years. A furnace installed before 1990, is not only at the end of its life, it is costing you money because it is inefficient.
  • Electrical – The electrical system has about a 40-year life span. Any home built before 1975, should be rewired. It’s a tough job and expensive. It is not a job that should be done on the lowest bid.
  • Plumbing – Metal pipes can last for 70 years or more. Newer PVC (plastic) pipe has a much shorter life (25 to 40 years.) Clay pipes (used for sewer pipe in the mid-1900’s, is past its lifespan. A good home inspector can verify the state of the existing plumbing and their advice should be heeded.

High Pressure Sale
Anytime the buyer or their realtor is applying undo pressure for a decision the buyer should be ready to walk away. Used car salesmen have used this tactic for decades to push people into a deal that they don’t want. It also means that the seller may have significant problems with the house that they don’t want the buyer to discover.  

Certainly the buyer needs to make timely decisions, and a seller should not expect to have to pass up other offers while waiting for another buyer to decide, but if the seller is demanding an immediate decision, then warning bells should be going off in the buyer’s mind.

Other Pages of This Blog

  • About Paul Kiser
  • Common Core: Are You a Good Switch or a Bad Switch?
  • Familius Interruptus: Lessons of a DNA Shocker
  • Moffat County, Colorado: The Story of Two Families
  • Rules on Comments
  • Six Things The United States Must Do
  • Why We Are Here: A 65-Year Historical Perspective of the United States

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