'Affordable rentals' for Tesla and Google employees planned for Reno Greyhound station

The father of a Tesla co-founder is the new owner of the Greyhound bus station near Wingfield Park in downtown Reno. He plans to convert the 1.3-acre parcel on the Truckee River into affordable rentals. Greyhound sold the station for $3.75 million to Greenway Reno at the end of March.

“Our plans are to create housing for the likes of Google and technology employees that are accumulating in the area at a rapid pace," said Greenway owner Jeff Straubel of Wisconsin. "We wish to have affordable, non-luxury rents with as many amenities as we can afford."

Straubel, 74, is the father of Tesla Motors co-founder and Chief Technology Officer Jeffrey B. Straubel. Straubel said neither his son nor Tesla are involved in the project. A Tesla spokesperson confirmed the company has no plans with the station.

The area's growth precipitated Straubel Sr.'s interest in Reno development. He said he likes Reno and Tesla and started working with University of Nevada, Reno's real estate department for his plan.

More: Reno Greyhound bus station sold for $3.75 million

More: While UNR seeks buyer for Nelson Building; West 2nd developer says project is still alive

"We just love the area that is developing, especially if we can do some good for the development and the future employees," Straubel said.

Troy Miller, UNR director of real estate, said Straubel is one of many buyers interested in the university-owned Nelson Building. The Nelson Building is across the street from the bus station on Second Street. Miller said the official listing should go live with Colliers International in the next two weeks and they'll consider offers at that time.

Straubel has developed housing and office properties in the Midwest since 1986. This would be his first development project on the West Coast.

Straubel said he's interested in west downtown Reno because of other activity going on in the area.

Two years ago, architect Don Clark presented plans to the city of Reno to convert the surrounding area, including the bus station, into a large housing and commercial area called West 2nd District. His Don J Clark Group was not able to secure new properties or break ground and the concept has since faded from view.

More: Dead or alive? Downtown Reno's West 2nd District, one year later

More: UNR keeps $700,000 deposit and seeks new buyer for Nelson Building

A few blocks north, Jacobs Entertainment has been buying up property on Fourth and Fifth streets between Keystone Avenue and West Street with plans to make an area called the Fountain District.

More: Jacobs Entertainment tearing down ‘heroin hotel’ and two other downtown Reno motels

More: Jacobs Entertainment demolishes another motel west of downtown Reno

"We love it because of the location and gentrification that’s going on," Straubel said. "We believe this is the 50-yard line of that endeavor. It’s the center of where the new residential in Reno redevelopment district should start."

Straubel wants to buy surrounding parcels to expand the footprint of his plan, but said those acquisitions have been difficult. Most of the surrounding blocks are either empty lots, parking lots or low-income apartments.

"The prices are astronomical," he said. "It’s out of control, but it has to start somewhere. Sooner or later reality will set in."

In the past, property owners have said their land prices will increase in relation to the intended development plans. The Siegel Group owns a parking lot across the street from the bus station, for example, and Senior Vice President Michael Crandall told the RGJ two years ago the price would go up once he learned that Don Clark wanted to build a hotel on the lot.

The Nelson Building owned by UNR was appraised at $3.7 million three years ago, but the Don J Clark Group offered $7 million. After the sale to Clark failed, the Nevada System of Higher Education Board approved a new listing and future sale price above that appraised value.

More: Siegel Group says West 2nd District 'Absolutely never happening'

Jacobs Entertainment recently purchased parcels north of the railroad tracks and similar in size to the bus station for millions of dollars. Some weekly motels have sold for a little under $1 million, but others have sold for more, according to Washoe County Assessor records.

"We've been designing for some time and it’s hard to say where we’ll settle because we have to work with the city," Straubel said. "Hopefully everyone will be supportive."

Straubel did not reveal a timeline or scope of the development plan.

Greyhound bus services plan to relocate to either the Amtrak station near Harrah's Casino or the RTC bus station on Fourth and Lake streets.

Mike Higdon is the city life reporter at the RGJ and can be found on Instagram @MillennialMike, on Facebook at Mike Higdon, Reno Life and on Twitter @MikeHigdon.