The parent company for the Sands Regency Hotel & Casino has acquired the Nelson Building, further expanding its growing footprint in downtown Reno’s west corridor.

Jacobs Entertainment purchased the Nelson Building parcel from the University of Nevada, according to a Washoe County Recorder’s Office document about the sale that posted on Sept. 15. Jacobs, which has been amassing properties downtown as part of its Neon Line District project, declined to comment on the Nelson Building purchase when contacted on Monday.

The Nelson Building parcel measures more than 51,600 square feet or nearly 1.2 acres according to information from the Washoe County Assessor’s Office. In addition to the Nelson Building, Jacobs also acquired two smaller parcels alongside West Second Street as part of the deal. The two other parcels, which include a parking lot and access point located just south of the building, total 16,000 square feet.

The Nelson Building has been the subject of acquisition talks for many years. 

Previous attempts include a $7 million offer — nearly twice the appraisal price for the property at the time — in 2016 by developer Don Clark as part of a proposed $1.2 billion downtown redevelopment pitch called the West 2nd District. The deal for the Nelson Building, however, fell through in 2017.

In 2018, the Nelson Building was part of talks between the university and Nevada State Lands for a potential property swap involving the Nevada Historical Society building at UNR, two vacant parcels and $773,625 in cash. At the time, UNR President Marc Johnson described the potential deal as “a fascinating series of transactions.”

The acquisition of the Nelson Building expands Jacob Entertainment’s reach n the downtown Reno west corridor, particularly between West Fourth and West Second Streets. The company has been on an acquisition spree for properties around the Sands Regency in recent years as it pushes for a new downtown district called the Reno Neon Line.

In addition to the $135 million investment that was announced for the project’s first phase, CEO Jeff Jacobs announced an extra $150 million in March for the Reno Neon Line’s next phase of development. The second phase includes a new event space called Sands Connect, which also uses the historic Nystrom House as a food hub.

Jacobs’ acquisitions include several blighted motels, which have either been remodeled into new apartments or torn down to make way for art displays or future projects. The displays include several installations that use art from Burning Man.

The loss of the motels, which have served as de facto affordable housing for residents in the lower-income spectrum, have raised concerns at a time when Reno is suffering from a housing shortage. In addition to the Jacobs acquisitions, the Regional Transportation Commission of Washoe County also acquired several old motels near UNR so they can be torn down to build a new RAPID bus transit station.

Jacobs criticized the poor condition of the blighted motels, which he described as unfit for people to reside in.

“Some were salvageable and many were not,” Jacobs told the Reno Gazette-Journal last year. “And the ones that were not, I’ve made a commitment to relocate some of the folks (who lived there) and we’re even paying part of their rent right now.”

Jacobs also pledged to set aside a portion of the apartment units that his company develops in the Reno Neon Line district as either senior or affordable housing. The company is making the pitch as part of a proposed development agreement with the city of Reno.

“Jacobs Entertainment is committed to preserving 100 affordable housing units for the next decade,” Jacobs said back in March. “These will be both senior and workforce affordable housing units, and will represent 30% of our apartment units along Reno’s Neon Line.”

Jason Hidalgo covers business and technology for the Reno Gazette Journal, and also reviews the latest video games. Follow him on Twitter @jasonhidalgo. Like this content? Support local journalism with an RGJ digital subscription.

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