Chateau at the Village in South Lake Tahoe sells for $42.5 million

Owens Realty Mortgage has reported that Tahoe Stateline Venture, LLC, has entered into a purchase agreement with Jianping Pan, Kawana Holdings LLC to sell some of their Chateau at the Village for $42.5 million.

The property, once known as "The Hole" after the initial investor tore down existing businesses before running out of money, is located on Lake Tahoe Blvd. just west of Harvey's Casino. The property for sale was 11.5 acres, but the purchase is for just eight acres and will not include the existing retail buildings and improvements. Kawana will purchase land and entitlements, including the parking area.

Entitlements for projects in the Lake Tahoe Basin are difficult to obtain in Lake Tahoe, and are valuable once achieved. It has been perceived that soon it would be hard to replicate the Chateau opportunity with its discretionary entitlements and infrastructure improvements already approved.

There are several conditions that need to be met for the property to close, including completion of satisfactory due diligence by the buyer and the approval by the City of South Lake Tahoe of a tentative map. While the future owner could use the Chateau area for something other than already permitted, they are required to request a plan revision, one that is consistent with the current area plan.

The closing of the transaction is expected to occur by March 31, 2017 or within seven business days following City Council approval of their plan.

"There can be no assurance if or when the sale of the TSV (Tahoe Stateline Venture) property will be consummated," Owens said in a press release.

"We hope to see the project continue as permitted," Tom Lotshaw of the Tahoe Regional Planing Agency told South Tahoe Now when the property was originally put up for sale.

Kawana Holdings has paid an initial deposit into escrow of $500,000. An additional $12.5 million is to be deposited into escrow by the buyer on or before November 18, 2016. TSV will credit the Buyer $3,000,000 for expenses. The additional $32.5 million of the purchase price is to be paid at closing.

The only Kawana Holdings, LLC found in California is listed as a company in Newark, Calif. It is unknown at this time if it is the same company as the buyer of the Chateau.