Jacobs Entertainment finalizes purchase of Bonanza Inn

Update, August 2:

Jacobs Entertainment finalized the purchase of the Bonanza Inn last month.

The inn is located in downtown Reno on West Fourth Street.

“We’re excited to have officially closed on the Bonanza Inn; in the coming weeks and months our team will be able gain a full understanding of property’s current status which will allow us to finalize future plans for the building,” said Jeff Jacobs, CEO of Jacobs Entertainment.

“Our intention remains to create quality housing which will include affordable workforce units at Bonanza Inn.”

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Update, February 16:

Jacobs Entertainment has acquired the Bonanza Inn through a probate auction held Friday in Washoe County. 

The final price for the 215 W. 4th property for $3,005,000.00.

Jacobs Entertainment CEO Jeff Jacobs made the following statement following the acquisition:

“We will continue to move forward with chartering a new path for Reno’s Neon Line with the creation of high quality housing options as a key component of that vision. To that end, we are very excited to have secured the Bonanza Inn at today’s probate auction to move forward with our plans to deliver approximately fifty units of quality, workforce housing to improve the uninhabitable current structure. Our development team has some new ideas to keep construction costs contained, allowing the project to be economically feasible. We strongly believe that workforce housing is the most appropriate use for the future of this property and look forward to delivering much needed housing for Reno’s working families.

When buildings can be saved and rehabilitated, we do that. But no one in our community should be living in places with black mold, bug and rodent infestations; pretending that these places are acceptable housing is not a solution. We believe that everyone deserves to live with dignity and respect; accepting the status quo of squalid conditions for hundreds of families and individuals is unconscionable.

When properties are beyond saving due to neglect from prior owners, our team supports tenants and works diligently to help them find new housing; we’ve spent hundreds of staff hours and hundreds of thousands of dollars to identify new housing options, provide relocation services, pay rental down payments and more.

We will continue to support the Reno Housing Authority and believe that they are ideally positioned to advance the creation of affordable housing in the community.”

Jacobs Entertainment previously said it wanted the buy the property – in an auction – last November and possibly build housing. 

The Bonanza Inn was permanently closed in 2022 after repeatedly being cited for code violations by the City of Reno. 

JANUARY 31, 2024:

Jacobs Entertainment says it has decided to not acquire the Bonanza Inn after all, focusing its attention on other options. 

CEO Jeff Jacobs released this statement to 2 News Nevada:

“We are constantly reassessing our options for the best investments to revitalize Reno’s Downtown and deliver quality, affordable housing options in Reno’s Neon Line District. As we have conducted our due diligence on the possibility of acquiring the Bonanza Inn, our assessment is that we can deliver greater impact by pursuing other opportunities and partnerships. We’re excited to share those plans in the near future.”

Jacobs Entertainment previously said it wanted the buy the property – in an auction – last November and possibly build housing. 

The Bonanza Inn was permanently closed in 2022 after repeatedly being cited for code violations by the City of Reno. 

NOVEMBER 2, 2023:

On Thursday, Jacobs Entertainment announced that they will seek to acquire the Bonanza Inn, located at 215 W 4th St, as part of its goal to increase quality housing options in Reno’s Neon Line District.

“We intend to make a strong bid to acquire the property in order to develop additional workforce housing, with a set aside for 10% affordable senior housing units,” said CEO Jeff Jacobs. “While we currently own the 47-unit Renova Flats, with 10% affordable senior units, as well as the 60-unit 245 North Arlington apartments under construction, also with 10% set aside for senior affordable housing, we are looking for additional opportunities out into 2025. Given its location and our overall housing development goals for Reno’s Neon Line District, this is an ideal opportunity to reposition a blighted downtown property and create much needed workforce and affordable senior housing.”

The Bonanza Inn was permanently closed last year after repeatedly being cited for code violations by the City of Reno. The property, listed as a tear-down, is scheduled to be sold at auction on November 29.

Jacobs Entertainment made the announcement in advance of appearing before the Reno City Council on November 15 to present updates on its development agreement with the city.

The developer has made steady progress in transforming Reno’s Neon Line District, including more than $400 million in upgrades to J Resort, the former Sands Regency hotel-casino, the creation of the Glow Plaza festival grounds, and new housing at Renova Flats and 245 North Arlington.  

“Our efforts to redevelop blighted downtown properties into quality housing for Renoites is not easy, cheap or quick, but it’s an integral part of our vision for Reno’s Neon Line District and one we remain strongly committed to,” added Jacobs. 

To learn more about Reno’s Neon Line District, visit https://renosneonlinedistrict.org/.

(The Abbi Agency assisted with this report.)