A South Lake Tahoe property on the Nevada state line and entitled for more than 300 residential units has sold to a Bay Area buyer for $42.5 million.
The Chateau at the Village, at 4125 Lake Tahoe Blvd., went full circle over the last decade, from anticipated development to foreclosure and back to active status again.
Jeffrey Hutchins, a vice president with Kidder Mathews' San Francisco office, said the lender that foreclosed, Owens Realty Mortgage, was the seller in the new transaction. Kawana Holdings, based in Newark, closed escrow on the property last week.
"It's a big investment for South Lake Tahoe," Hutchins said. The Chateau is 8 acres of the original 11.5-acre Village development, and is entitled for up to 380 residential units. Apart from some early infrastructure work, the property has not seen activity since the original entitlements were approved.
Hutchins said the entitlement is for what local planning officials calls "tourist accommodation units," which can mean hotel rooms, condominiums or something similar. He said he believes condos are the most likely option, but had no information on how soon construction could begin.
Owens Realty retained ownership of the remaining acreage of the development, and started building a 23,588-square-foot commercial building directly on Lake Tahoe Boulevard three years ago. That property is now fully leased, and another one of about 20,000 square feet to the south is in the process of leasing, Hutchins said.
Units in Zalanta Resort at the Village, another condominium development on the property, are currently being sold.
The deal took a long time because of the strong oversight of development for Tahoe projects and restrictions on the original entitlement, Hutchins said.
Hutchins, Benjamin Pollock and David Wientjes, all of Kidder Mathews' San Francisco office, brokered the sale.
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