CRYSTAL BAY, NEV. – The former Tahoe Biltmore Lodge was sold in a foreclosure sale to its original benefactor, Lake Tahoe Partners LLC. Nine pieces with the Waldorf Astoria Lake Project were sold in a trustee sale on July 15, according to the Washoe County Recorder’s office. 

Newport Beach-based developer EKN purchased the Tahoe Biltmore in 2021 for $56.8 million, nearly twice the figure its previous owner paid, with intentions to create the luxury Waldorf Astoria resort. The Biltmore was still open when EKN purchased the property, but closed in 2022.  EKN CEO Ebbie Nakhjavani did not respond to a request for comment. 

The sale comes after the developer defaulted twice on the building’s $82 million loan. After a notice of default in Nevada, a grace period of three months is allowed before the property can be sold at auction and foreclosed.

Permits still active

The change of ownership, however does not impact the permitting of the Waldorf Astoria site itself. As project permits are related to the site and not the developer, a new purchaser will be able to continue the process of development of the luxury hotel concept.

“Things are still active and they still have a valid permit,” said Jeff Cowen, Public Information Officer of the Tahoe Regional Planning agency, the organization which oversees legal approvals for development in the basin.

“If they [new ownership] don’t want to move forward with it the permit will expire in three years,” said Cowen. However, “It’s very unlikely that they would do that because it’s a very complicated permit. There was a lot of investment that went into it just doing environmental analysis and all of the other things for their side.”

A troubled financial history

The Biltmore has had a chequered past, with significant financing issues and delays in plans. The Tahoe Regional Planning Agency approved plans to begin development in 2023, but the original target dates of construction were pushed back multiple times.

Boulder Bay LLC bought the structure for $28 million in 2007, with plans to turn it into a new casino resort with 366 rooms and condominiums. TRPA approved the permits four years later but the project was ultimately canceled due to financing issues.  

The foreclosure comes as many question the future of Crystal Bay, Nev., which has seen many previously well frequented casino-hotels shut their doors, and now appear with boarded windows. Experts attribute this tourism shift to a greater demand for outdoor tourism post-Covid. Additionally, the cost to upgrade older buildings to meet current environmental standards can be high.

“We recognize that there are centers around the lake that have not seen a lot of investment since the 1950s or 60s,” said Cowen. “So often times revitalization in a certain area can bring forward environmental benefits,” He cited that the developments to achieve permitting at the Biltmore were particularly involved. “At the Biltmore, there is a lot of complexity.”