Real estate firm Kennedy Wilson announced on Tuesday that it bought a 50% stake in The Ritz-Carlton, Lake Tahoe and The Ritz-Carlton Residences, Lake Tahoe from the property’s lenders, with an unnamed partner purchasing 50%.
Kennedy Wilson, Beverly Hills, California, said that it and unnamed partners invested US$18 million in equity while Pacific Western Bank provided US$45 million of financing for the transaction. Kenedy Wilson said the total amount of the purchase was higher, but still less than replacement cost.
After the property’s original developer East West Resort Development, Avon, Colorado, defaulted on its US$165 million loan, it was repossessed by a group of banks led by Bank of America. The 170-room hotel was constructed in 2009.
“We are pleased to be able to acquire the property at a significant discount to replacement cost,” said Stuart Cramer, president of KW Residential Investment Group.
The company will begin marketing the 23 units of The Ritz-Carlton Residences, Lake Tahoe, located on the property’s top floor, in January. The property, located in Truckee, California, is situated mid-mountain along the Northstar Resort ski slopes.