ACQUISITION & MANAGEMENT
BEACH RETREAT RESORT
Lake Tahoe, CA
The Beach Retreat & Lodge at Tahoe (BRL) is a remarkable resort comprising five buildings, offering 262 keys. Nestled on nearly seven acres of land, the resort boasts an impressive 500 feet of frontage along the pristine shores of Lake Tahoe in South Lake Tahoe, CA. Conveniently located just two miles west of the Nevada border, the resort enjoys an unparalleled setting that would be incredibly challenging to replicate due to the site's size and the oversight of the Tahoe Regional Planning Authority, a joint governing body of California and Nevada.
The resort presents a multitude of amenities that enhance the guest experience. Notably, it features a one-of-a-kind 1,000-foot pier, along with 80 moorings for boats. On this pier, guests can enjoy the unique ambiance of the Boathouse, a 1,600-square-foot restaurant. The resort also offers a heated outdoor pool, a 24-hour fitness center, an outdoor firepit, convenient on-site laundry facilities, and a welcoming lobby with a fireplace. Additionally, there are additional dining options available on the premises. To cater to events and gatherings, the property includes a standalone 3,100-square-foot conference center, complementing the existing indoor meeting spaces. Guests also have the opportunity to rent boats, jet skis, and kayaks through a lease with a marina operator. The combination of BRL's superb location, its range of amenities, and the unique offerings such as the expansive pier and moorings make it a truly exceptional destination at Lake Tahoe.
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Three-story, 262-key lakefront hotel
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500 feet of beach frontage
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1,000 foot pier
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4,000 sq. ft. resort in South Lake Tahoe[AC1]
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Land area of nearly seven acres
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Built in 1974
BACKGROUND
Urbana acquired a distressed resort inherited by the sons of a local real estate patriarch with no hotel or resort operational experience for $14.2 million in 2012. At the time, the resort was generating only $270,000 of NOI. The property was branded as a Best Western yet was situated on a prime 7.6-acre development site. Lake Tahoe is one of the most picturesque lakes in the United State, with Safire blue water surrounded by mountains, yet it offers few beaches around its perimeter.
This site was on the waterfront and had a large beach along with a 1,000-foot pier with frontage along Highway 50. With an exceptionally rare combination of attributes, the property was a prime candidate for redevelopment. Urbana prudently managed the amount of capital invested to enhance the NOI, expecting the escalation in land value may mirror the income-producing potential of the current improvements. The Best Western flag was creating an ADR ceiling and attracting a highly rate-conscious guest.
To enhance value, Urbana devised a property turnaround plan, which included rebranding the property to the Beach Retreat & Lodge, implementing standard operating procedures, hiring competent personnel, and undertaking a high guest impact property improvement program.
Additional conference space was constructed to build a revenue base of group guest business in what had previously been solely a transient guest business. While a redevelopment plan was created, Urbana’s capital partners chose to sell the property rather than embark into the world of development. With the NOI improving to $2,100,000 prior to 2019, the property was sold for $31,255,000 the first quarter of 2019.