New looks planned for South Lake Tahoe Factory Stores |

New looks planned for South Lake Tahoe Factory Stores

Jack Barnwell
Sutter Capital Group plans to rehabilitate the Factory Stores at the "Y" into a new, improved set of buildings called Crossing at Tahoe Valley, including facade improvements and an open plaza. The owner plans to begin in spring 2016.
Courtesy of Sutter Capital Group |

SOUTH LAKE TAHOE — Change is afoot at South Lake Tahoe‘s “Y.”

A large, outdoor communal patio with a fire pit and event stage, new landscaping, and a complete exterior renovation of retail buildings is planned for the Factory Stores at the “Y” by Sutter Capital Group; the area will be renamed Crossing at Tahoe Valley.

“We’ve met with the city several times and they are in support of it,” said Burke Fathy, managing partner of Sutter Capital Group. “We’re really excited to offer something new for the community and visitors.”

Sutter Capital Group acquired the property for an undisclosed amount just before the holidays in 2014, after noticing the potential the outdated property presents. It will be a multi-million dollar project.

The retail plaza is currently less than 50-percent occupied and houses Big 5, Bank of America, Pearl Izumi Lake Tahoe, Bass Shore Outlet and Styles for Less. Another 12 storefronts sit vacant.

Fathy said Sutter Capital Group plans to submit its full application to the City of South Lake Tahoe within the next few months. Construction would start in spring 2016 and finish that fall.

Part of the plan includes knocking out 4,000 square feet to build the patio and hook it into the existing bicycle path while complimenting the planned Tahoe Valley Area Plan. The plan allows for greater flexibility in redevelopment for the area around the “Y” at highways 50 and 89, where more than 50,000 vehicles pass per day.

The Tahoe Valley Greenbelt is part of that plan, including development of open space and bike/pedestrian paths.

The area plan also allows the city approve the Crossing project without Tahoe Regional Planning Agency involvement.

John Hitchcock, South Lake Tahoe’s planning manager, said the city and Sutter have discussed initial plans for the project.

“We would like to see the older commercial space redeveloped and we really encouraged Sutter to use the Tahoe Valley Plan’s Greenbelt as a guide,” Hitchcock said.

Fathy said his company conducted extensive outreach on the project to get a sense for what the community wanted to see at the “Y.”

Fathy added that the real estate investment firm is particularly focused on selecting the appropriate community-driven restaurant concepts to occupy the spaces, which will face onto the patio, to fully activate that area as a both a project and community amenity.

“We want make the place more dynamic compared to in the past, where you shop and move on your way,” Fathy said. “There is a lacking in this part of South Lake Tahoe to hang out — we are trying to meet that need.”

For more information on the Tahoe Valley Area Plan, visit

Support Local Journalism

Support Local Journalism

Readers around the Lake Tahoe Basin and beyond make the Tahoe Tribune's work possible. Your financial contribution supports our efforts to deliver quality, locally relevant journalism.

Now more than ever, your support is critical to help us keep our community informed about the evolving coronavirus pandemic and the impact it is having locally. Every contribution, however large or small, will make a difference.

Your donation will help us continue to cover COVID-19 and our other vital local news.