South state realty firm acquires Ritz-Carlton at north Lake Tahoe
12/18/2012 10:34 PM
12/18/2012 11:17 PM
A Southern California real estate investment firm has purchased the Ritz-Carlton luxury hotel at Lake Tahoe from a group of lenders.
Kennedy Wilson and its partners also acquired the adjacent Ritz- Carlton Residences, which has 23 units that will be offered for sale. Both properties are at the Northstar ski resort.
Kennedy Wilson declined to release a purchase price, but said it borrowed $45 million and invested $18 million in equity for a 50 percent stake. The rest of the property will be owned by a partner, whose identity was not disclosed.
A group of banks led by Bank of America repossessed the Ritz last year after developer East West Resort Development of Avon, Colo., defaulted on a $165 million loan.
The hotel opened in 2009 to great fanfare, quickly falling victim to the recession.
Stuart Cramer, president of Kennedy Wilson's Residential Investment Group, said Tuesday in a news release that the purchase price was "a significant discount to replacement cost."
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