Fernley, NV, near Reno, has been in a growth cycle for much of the past decade, with the likes of Tesla, Panasonic and Apple building facilities there.
Part of the Reno–Sparks metropolitan statistical area, the city has a population of nearly 23,000, with a five-mile population projection by 2026 of 25,070. It has strong market fundamentals, including a growing population, ample affordable housing, a business-friendly state government and plentiful employment opportunities.
Fernley is around 35 miles from Reno and north of Lake Tahoe. It’s also around 40 miles from Tahoe Reno Industrial Center (TRIC), home to more than a hundred companies.
To capitalize on its growth and the opportunities the city has to offer, LRE & Companies, a real estate development, asset manager, construction and hotel management company, has unveiled plans for Fernley Promenade, a 13-acre mixed-used development project consisting of industrial, retail and a hotel.
“We’ve developed, opened and operated hundreds of restaurants throughout Northern California and Western Nevada over two decades,” said Akki Patel, CEO, LRE & Companies. “We knew all the growth is constantly migrating. From an industrial logistics standpoint, a lot of companies have moved there, so we always found that very attractive.”
Akki Patel LRE & Companies
He added, “We had a great piece of land in Fernley right between a Super Walmart and a Lowe’s home improvement store right on Highway 80. All of these demand generators for commuters and people working there, but not a decent hotel to stay, except for a few motels.”
While Patel was familiar with the area from having built three restaurants there years ago, he said that the Tesla Gigafactory, a lithium-ion battery and electric vehicle component facility near Fernley, really made it a desirable area to invest.
“The Tesla Gigafactory clearly put Fernley on the map,” he said. “It clearly defines that geography big time. It is about 10 miles west of Fernley. Fernley is a main bedroom community, where the homes, all the construction , grocery shopping and Walmart and Lowes are.”
The hotel component of Fernley Promenade will be a 98-room extended-stay lodging facility, the four-story Home2 Suites at Fernley Promenade, which will have a swimming pool, fitness center, guest laundry room, breakfast room and sundries shop.
With the number of corporate facilities in the area, Patel said that an extended-stay hotel made the most sense. “Monday through Friday was a key thing,” he said. “People do go there. One thing we learned through the process was that there weren’t any great hotels to stay, and the nearest place you had to go to was Reno.”
When people stay in a hotel, they also want places to eat and shop, so in addition to the Home2 Suites, there will be three quick-service restaurants (QSR), three large junior anchors and 16,000 sq. ft. of shop space as part of the development, which is slated to be completed by year-end 2024. The company is in the process of finalizing the junior anchors, and Patel noted that there already several letters of intent for the restaurant pads. The remaining retail and QSR spaces are available.
“Fernley Promenade has all the elements of a successful mixed-use development when you look at it on paper,” added Victor Chiang, VP, development, LRE & Companies. “Being in one of the strongest counties in Northern Nevada, Lyon County, Fernley over the last 10 years has attracted large Class A industrial developers. We expect Fernley Promenade to drive tourism to the community and become a significant demand generator for future investments. The opportunity for investors, retailers and, most importantly, the community is significant.”
