The Summit Club Apartments took one step closer to reality after the state approved a $90 million bond for the project.
Officials with the Nevada State Board of Finance approved the bond on Tuesday to help finance the project, which will feature a mix of 80 percent market rate housing and 20 percent workforce or affordable housing. Of the 584 total units planned for the project, 117 will be set aside for tenants making 50 percent or less of the median income in Reno, which is about $44,426.
The project will be built on former Summit Sierra land that was bought last year by Sierra Summit LLC. The company is not related to the owners of The Summit shopping center. Reasons for choosing the location on Mount Rose Highway and Interstate 580 include proximity to the shopping center as well as an RTC Park & Ride location for easier access by residents to Reno and Carson City transit, said Chip Bowlby, co-managing partner of Sierra Summit LLC. Bowlby also announced a $100,000 donation by Sierra Summit LLC on Tuesday to a campaign around a ballot question for school infrastructure spending in Washoe County.
“We are immensely proud of the plans our team have created,” Bowlby said. “We are meeting a critical need for housing to help sustain the resurgence of the economy throughout the region.”
The bonds for the project, which will be issued by the Nevada Housing Division, will be paid for entirely through apartment rents, Bowlby said. The state also will have no liability for the bond, which will not use public money, Bowlby added.
The 80/20 mix for the Summit Club Apartments is important because it fills a need in the community, said Michael Holliday, Nevada Housing Division chief financial officer. In addition to surging home prices spurred by strong demand and limited supply, a report by apartment search company Abodo also found that Reno posted the third-highest increase in apartment rent nationwide since the beginning of the year. A survey by moving company United Van Lines also found Nevada to be one of the top 10 states nationwide for movers and No. 2 in the West.
“This project is the first of its kind in Northern Nevada and opens the door to this sort of creative housing blend to meet the ever-changing needs of our community,” Holliday said.
Summit Club Apartments is considered the first project of its kind in Nevada to use the bond financing program on a “Class A” location.
Developers are aiming for a spring start to construction for the Summit Club Apartments, which should start occupancy later this year or in early 2017. The project will incorporate a village-style design featuring buildings in configurations of 12, 18 and 26 units featuring one- and two-bedroom apartments.
The project received support from Reno Mayor Hillary Schieve, who called it another step in Reno’s revival.
“The Summit Club development addresses the need for more housing that will support Northern Nevada’s growing and diverse economy,” Schieve said.