Sale of Chateau at the Village in South Lake Tahoe closes for $42.5M
The sale of part of The Chateau at the Village in South Lake Tahoe closed last week, nearly seven months after the sale was first announced.
In a press release on April 20, Owens Realty Mortgage announced it had closed the sale of the property to Tahoe Chateau Land Holding LLC for $42.5 million.
As the Tribune previously reported, the purchased property includes 8 acres of land and entitlements, including related parking and garage structures, which were owned by Tahoe Stateline Venture LLC, a wholly-owned subsidiary of Owens. It represents only part of The Chateau at the Village and does not include existing retail buildings and improvements.
As a whole, The Chateau at the Village is an 11.5-acre retail and large-scale residential development site directly across the state line and casino corridor on Tahoe’s South Shore. The first phase of the project was completed in October 2014 and consisted of 31,000 gross square feet of retail space that now houses stores and restaurants like McP’s Taphouse Grill.
The next phase — effectively 30 luxury condos across from the Heavenly Gondola — was started in September 2015 and is in the process of wrapping up. Known as Zalanta Resort at the Village, developers expect the condos to be completed by May 1, the Tribune previously reported.
The now-closed sale netted a gain of about $13.2 million for Owens Realty Mortgage.
“We are very pleased to have closed the sale of this property as it was one of our largest assets,” Bryan H. Draper, the company’s CEO, said in the press release. “The sale resulted in a gain to the Company of approximately $13.2 million and added approximately $1.29 per share to book value. Furthermore, it provides the Company with $42.3 million in cash. We expect to reinvest and leverage a majority of these proceeds in the near term to expand our loan portfolio and reduce Company debt. Subsequent to the sale, we have decreased our real estate holdings from approximately 43 percent to approximately 32 percent of total assets.”
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