Lotus Capital Locks Down $107M Financing for Tahoe Beach Club
By Cathy Cunningham January 28, 2019 4:00 pmreprints
ACORE Capital has provided a $107 million loan for Tahoe Beach Club, a three-phase, 143-unit luxury condominium development on Lake Tahoe’s South Shore, Commercial Observer has learned. The property will be the first residential development built on the lake’s shores since the 1980s.
The deal closed Friday.
Lotus Capital Partners negotiated the debt on behalf of sponsor Zephyr Development.
“We are proud to have advised on such an iconic project in this market, with respect to the prime real estate, the financing complexity, and the project’s sponsorship,” Lotus Managing Partner Faisal Ashraf said in prepared remarks. “It is hard to imagine another development team with such depth across the key disciplines in perhaps the entire Tahoe basin.”
The financing is secured by the project’s first phase—which includes 46 almost-complete condominiums—and the land under its third phase. It takes out the project’s construction debt and acts as both a condo inventory loan and completion financing to wrap up remaining construction at the site. More than 95 percent of the 46 units are pre-sold and have fetched some of the highest prices achieved in the Lake Tahoe basin, with average unit sales reaching north of $1,400 per square foot.
The transaction was shopped to several banks and debt funds, but ACORE was selected due to its expertise with this particular type of financing and its familiarity with the Tahoe market, Ashraf said.
The financing for the development’s second phase and 30,000-square-foot clubhouse will close in the second quarter, bringing the total financing to around $200 million.
Located on one of the last developable parcels of land with direct beachfront access to Lake Tahoe, the property includes a 217-foot private beach. The beach club’s amenities are set to include a spa, a restaurant, a pool, a fitness center and a boat valet.
Since its inception, Lotus has been busy arranging capital across the U.S. and in Europe. In March 2018 it negotiated a $237 million financing for Belgravia Gate—a 12-apartment, 83,054-square-foot luxury condominium property in Central London—with an affiliate of Apollo Global Management as lender.
Officials at ACORE weren’t immediately available for comment.