By Craig Woodward – Commercial Specialist DH&Co
After a long period of inactivity, we are beginning to see signs of life in commercial real estate at the South Shore. During last week, Owens Financial announced the completion of the purchase of the remaining nine parcels of the Chateau Project at Stateline. Owens now controls all 29 parcels and is free to develop the entire site. This has been envisioned as the major new mixed use development in South Lake Tahoe which will drive revitalization of the city center and hopefully the entire region. We are all waiting to see what will emerge over the coming months.
Meanwhile, lending rates for commercial properties remain relatively stable and investors are seeking reasonable rates of return for their commercial investments. Nationally, cap rates for retail properties are at 7.7%, apartments require 6.4%, and office buildings are 7.1%. Cap rates in South Lake Tahoe for current active listings seem to be in the 7% to 8.5% range. The overall environment for investing in commercial properties at the lake is good and getting better.
Deb Howard & Co has recently sold a commercial property on Emerald Bay Road and is currently listing a good income property at 2318 Lake Tahoe Blvd, the Johnson Center. Please call Craig Woodward for information.