​The Modern Hotel and Bar, an iconic boutique property located at 1314 W. Grove Street in downtown Boise, has been put up for sale. Its longtime owners, siblings Elizabeth and Robert Tullis, announced the decision as they plan to retire after nearly 20 years of running the business. Instead of setting a traditional asking price, they have launched a “call for offers” process, open from October 15 to November 14, 2025. This approach invites potential buyers to submit both financial proposals and creative visions for the property’s future. The hotel spans about 20,208 square feet on a 0.56-acre lot and includes 39 boutique guest rooms, 24 off-street parking spaces, and a liquor license.
Since opening, the Modern has become more than just a hotel—it’s a cultural hub known for hosting local art exhibitions, music events, and community gatherings. The owners emphasize that they hope to find a buyer who values the hotel’s legacy and continues its creative and community-driven mission. They also expressed a desire for the new owner to retain the existing staff and maintain the welcoming, artistic atmosphere the hotel is known for. Despite the sale, the Modern Hotel and Bar will remain open and fully operational, honoring all existing reservations, events, and gift certificates. The sale represents both the end of an era for the Tullis family and an opportunity for new stewardship of one of Boise’s most beloved hospitality landmarks.

As the downtown Boise market continues to grow, and surface parking lots slowly make way for higher density development, we're starting to see the impacts on what it cost to park your car in downtown.  If you go up in any taller building in downtown Boise, you quickly realize that Boise has numerous parking options.  Because the number of parking spaces has long out paced the demand, we saw very little rise in parking rates from 1988 until 2008.  Those 20 years only produced an annualized rent increase of 1.47%.

Fast forward to the next 11 years, where parking rates jumped from $79/month to $195/month, and you'll see parking rates have been increasing at an annualized rate of 6.3%.  Take a look at the table and trend line below, and you may start wondering where opportunities lie.  Is it in providing parking?  Buying property near transit centers?  Should I make my development more bicycle friendly and close to amenities?

In the past, restaurants were often viewed as “risky” investments by investors and bankers.  With the evolving world of retail, I have become a believer that restaurants can actually be a safer bet than your traditional retailers.  If you’re thinking about investing in commercial real estate, here’s a few reasons why you may want to consider a restaurant property:

1. Beer & Nachos Don’t Come in a Box.   As the online world puts the hurt on traditional retailers, more and more consumers are happy to receive their goods on the doorstep.  Malls are struggling and numerous retailers are closing, but drinking a cold beer and eating hot nachos with your friends can’t be delivered in a box.
2. Expensive Infrastructure.  Restaurants are one of the most expensive properties to build on a $/sf basis, which can help the landlord in several ways.  First, the high cost makes it more difficult for the competition to enter the market.  Second, once a restaurant gets established, it is very hard to “pick up and move” to try and save a few bucks on rent. Lastly, once that infrastructure is installed, it will be that much easier to the replace the tenant when they leave.
3. Predictable Rent.  If you take the time to learn a few of the basics about restaurants and rent, you can quickly determine if the location & rent is sustainable.  For example, many landlords love to raise the rent as much as possible on their buildings, but if you know the sales of the restaurant, you can determine where the rent needs to be so the restaurant stays viable.  To make sure you have predictable rent, the lease should require the tenant to give you sales numbers.
4. Upside Potential.  There are very few real estate investments you can take advantage of great sales like you can in restaurants.  For example, you may have a modest base rent, but structure a deal whereby the tenant pays a percentage of sales if sales exceed a certain threshold.  This is a win-win for both the landlord and the tenant, and your return just went up!
5. Triple-Net Leases.  Most investors love triple-net (NNN) leases, and most restaurants are NNN leases!  A triple-net lease establishes that the tenant pays all the operating expenses of the property, which reduces the landlord’s expense exposure and reduces management headaches (one of my favorite parts!).   

I was recently reading the October issue of Commercial Investment Real Estate, which is put out by CCIM.  They always publish interesting statistics and one that made me pause was a table showing the most expensive office markets in the world.  The most expensive being:

1. Hong Kong @ $290/sf/year
2. London @ $262/sf/year
3. Beijing @ $188/sf/year

With downtown Boise office rates in the $20 - $30/sf/year for Class A space, we truly are a bargain! 

​As the end of the year approaches, this is a perfect time to start thinking about taxes and how to best maximize value.  Many folks that own investment real estate often love the tax benefits.  BUT, if you're thinking of selling your investment property within the next 3 years, it may be wise to really consider some of those "property expenses" you have the accountant write off against your rental income.  

Lets face it, many folks expense as much as they think possible against their rental income.  This reduces the net operating income (NOI) for the property, and thus the tax liability you owe.  This could be a big mistake if you're thinking of selling at any time during the next 3 years.

For example, lets say you expense an extra $1000 against a property with expenses that may be a little questionable.  If you're in the 33% federal income tax bracket, this will save you $330 ($1000 x 33% = $330) on taxes you owe Uncle Sam.  BUT, at the end of the day, your taxes show the property NOI is $1000 less.  

When buying, most investors want to see the last 3 years of property tax returns, since these are the most reliable and verifiable.  In addition, investors often base the purchase price on the net operating income (NOI).  

When selling, we want to maximize the NOI.  If we sell a property at a 7% capitalization rate (similar to a rate of return), then $1000 of increased NOI is worth $14,286 ($1000/7% = $14,286) in increased sale price.  If we take into account selling cost of 7.5% and assume we didn't write off that extra $1000 in expenses for 3 years ($330 x 3 of increased taxes), we would net $12,224 more for the property.  

In summary, for every $1000 of increased NOI (i.e. fewer expenses), you will make an additional ~$12,000 when you sell.  Now that's a good investment!

​Since the purchase of the old Bob Rice Ford property earlier this year, CWI has been busy planning how to best serve its students with an Ada County campus.  After numerous community input sessions and completing a master vision for their new campus, CWI has announced plans for a $180M bond in November which will enable it to expand its services both in Canyon and Ada County to meet the needs of its students.

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​Several large stakeholders in the West End met to update the group on their plans and discuss possible shared parking strategies.  If all these projects happen, we will see ~$150M of new development in the West End by 2020 and the need for ~1500 parking spaces.  If some shared parking strategies are not determined, we could see ~10 acres of the Main/Fairview corridor paved as surface parking.

​A developer is proposing to build a mixed use neighborhood scale development at the former site of Jerry’s Market.  In addition, they are in the process of purchasing the Islamic Center and have 5 townhomes planned for that site.  The development is likely to contain ~7000 square feet of commercial space and ~20 condominiums above the commercial space.

​The City of Boise has put considerable effort into spurring downtown housing, and it is working.  A neighborhood meeting was held in August at the vacant lot just west of the former Twin Dragon.  The developer presented some preliminary site plans and renderings and is anticipating a development of ~41 housing units.  No time frames were given, so stay tuned for more information.

​CWI unveiled its plan for the Ada County campus at the old Bob Rice Ford property during August.  These plans call for a 3 phase development that could last up to 40 years and ultimately have approximately 600,000 square feet.  The planned initial phase is ~150,000 square feet.  As one of the fastest growing community colleges in the nation, it is exciting to see the plans for this catalytic project coming together.