A prominent mixed-use development project in South Lake Tahoe is for sale - just as another phase of expansion begins.
Called Chateau at the Village, the project near the Nevada state line has come a long way since the downturn. One investor, Walnut Creek-based Owens Financial, acquired more parcels out of foreclosure and revived a development plan.
Entitled for both residential and retail development, Chateau would be over 11.5 acres. The first phase, about 23,000 square feet of retail, is now complete and 90-percent leased after work resumed in 2013, said Jeffrey Hutchins, a vice president with the Kidder Mathews office in San Francisco.
In the second phase now breaking ground, 30 high-end condominium units under the Zalanta name will top another 20,000 square feet of retail. Prices range as high as $2.12 million for those units.
Already, about 70 percent of the condos have reservations, said Hutchins. That phase of the project should be complete by late 2016 or early next year, he added.
But Hutchins said Owens Financial Group isn't interested in carrying out the last two phases. Those consist largely of another 450 residential units on property to the immediate west of the current development.
Hutchins said he expects sale of the property to draw interest from private equity firms, time-share companies and similar potential buyers.
Compared to when the property fell into foreclosure, Owens Financial will leave it in significantly better shape, Hutchins said. Not only has the regional economy improved, he said, but the investor acquired neighboring parcels. That will simplify further development.
Kidder Mathews is not listing a price for the property, which includes entitlements. However, in 2014 Owens Financial president William Owens said he was paying $6 million for nine parcels of the project as part of the land assemblage Hutchins described. The total project has 29 parcels.
For the full story, go to Sacramento Business Journal.
© 2016 American City Business Journals. All rights reserved.