Published on: September 25, 2024, 05:25h.
Last updated on: September 25, 2024, 05:25h.
The future of the iconic Tahoe Biltmore Lodge & Casino is uncertain following a default on a significant loan by the development group that acquired the property in 2021.
SFGATE.com reported that EKN Development, a real estate firm from California, stopped repayment on a loan used to purchase the Crystal Bay property. The acquisition cost was $56.8 million, and operations ceased in April 2022.
Financial challenges have prevented any progress at the Tahoe Biltmore, leaving it closed and abandoned with an uncertain future.
Upcoming Auction
First American Title has been appointed as trustee for the investors affected by EKN’s default. The outstanding loan, including interest and fees, now totals over $110 million.
EKN stated to SFGATE that they are not insolvent, but are seeking refinancing options.
EKN is actively working on restructuring the loan and anticipates completing this process within the next three to four months,” said EKN President and CEO Ebbie Nakhjavani. “In the meantime, EKN is continuing to invest in the project and construction activities are ongoing at the site.”
First American Title is proceeding with auction plans and has scheduled an auction for the 15-acre property on Oct. 8. This gives Nakhjavani a short period to secure new funding and repay the original loan.
When news initially broke about EKN’s repayment issues in April, Nakhjavani mentioned that “multiple institutions” had shown interest in the Waldorf Astoria project.
The auction announcement adds to the disappointments for the Crystal Bay community, which has seen promises of major investments in its gaming and resort sector go unfulfilled.
Oracle billionaire Larry Ellison had plans to revamp the historic Cal Neva property, previously owned by Frank Sinatra, but sold it last year following a decline in interest during the pandemic. Ellison also owns the Hyatt Regency Lake Tahoe, acquired in 2021 for $345 million.
Waldorf Astoria Lake Tahoe Project
The Waldorf Astoria Lake Tahoe project was set to include a resort pool, signature restaurants, and retail spaces. A boutique casino with slot machines and table games was also planned.
Additionally, the Tahoe Biltmore site was to have lake access for the first time, with plans for a beach club and shuttle service for guests.
EKN’s vision for the property included transforming it into a luxury destination with various amenities, but the current financial challenges have put the project’s future in doubt.