East West Partners and KSL Capital Partners have announced that they will be teaming up to work on real estate development opportunities and acquisition opportunities, not only in Lake Tahoe but throughout the United States.
KSL Capital Partners purchased the Squaw Valley USA ski resort in December of 2010 from the Cushing family who developed the ski resort in the 1940's and opened the resort in 1949. Shortly after the acquisition KSL announced that they would be spending $50M on capital improvement projects with a focus on infrastructure, Village amenities, and culinary services.
East West Partners are know in Tahoe for their development of Old Greenwood, Gray's Crossing, The Village at Northstar, Northstar Highlands, and the Ritz Carlton. These 2 Colorado based companies have worked on many projects over the years, most notably the at the Vail and Beaver Creek resorts. It would appear that once again they will be working on another potentially lucrative real estate development opportunity right here in Tahoe.
"The partnership will be actively looking for existing and new development opportunities in first-class mountain, beach, and second-home resort real estate markets, seeking to capitalize on recent distress in these markets. Specifically, the partnership is targeting projects in need of completion, preferably ones with associated development opportunities".
In the above quote I find the line that states "targeting projects in need of completion" to be the most intriguing due to the fact that the Village at Squaw was only partially completed (Phase 1 and Phase 2) with 3 additional buildings yet to be constructed. The completion of the Village was said to be halted due to water rights issues, which could have possibly been resolved over the years. Fortune Magazine's April issue cover article is titled "The Return of Real Estate", I guess KSL and East West feel that this is the time for more real estate development in Squaw Valley.
Who knows what's in store for Squaw Valley, but it appears that in the coming years there will be a significant construction of some sort. Rumors have also circulated about the possibility of KSL purchasing the Alpine Meadows ski resort and connecting the 2 resorts creating a mega resort. Maybe this is the next project after the completion of the Village at Squaw. What I do know is that Squaw Valley is changing, for better or worse. Get ready, as it's sure to be a wild ride.
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