Escrow closes on "The Chateau," luxury condo-tel planned

The sale of "The Chateau at the Village" in South Lake Tahoe is complete and the eight acres of land and entitlements are now owned by Tahoe Chateau Land Holding, LLC, a Chinese-American investment group.

The holding company, owned by Kawana Holdings, will own "air rights" above the existing retail area, related parking and the garage structure, the former convention center pad. The seller, Owens Realty Mortgage Inc., keeps the existing retail buildings and improvements that are home to McP's, Dough and various shops.

The purchase price was $45.5 million. Sierra Sotheby International Realty Broker Vince Scott represented the buyer.

"We're extremely excited to introduce this project to the market and look forward to working with our neighbors including Heavenly resort owner Vail Resorts, and local vendors and suppliers,” said Scott. “This project represents a huge impact to the local job market and overall revenues to the community of South Lake Tahoe. It will also be a vital part of the downtown improvements proposed to enhance and improve pedestrian and vehicle circulation.”

“We intend to complete the existing plan with some modifications on the condo-tel project consisting of luxury residential whole ownership units," said South Tahoe Development Co. CEO Will Oswald, the development partner. "We are currently in discussions with Vail Resorts to manage the property offerings, including full-service hotel-type amenities.”

A condo-tel is a condominium project that is operated as a hotel with a registration desk, cleaning service and more.

"We are in the design and engineering phase determining the ideal product mix and quality of finish detail including spa, restaurants and amenity packages,” added Oswald. "We will stay within the existing framework of the permit while putting a world-class touch on this project.”

The original convention center plan will be eliminated and replaced with smaller meeting rooms targeting incentive and group events. The target date for construction to commence is expected to be in the Spring 2018, however, definitive dates have not been established for pre-sales or construction at this time.

In its entirety, the Chateau at the Village is an 11.5-acre retail and residential development site located at the California/Nevada state line. In 2014, the first phase was completed offering 31,000 gross square feet of retail space. Still in development, the second phase known as ‘Zalanta Resort at the Village’ consists of a 30-unit luxury condominium complex located directly across from the Heavenly Gondola with the balance of 387 luxury condo-tel being acquired by Chateau Land Holdings, Inc.