Chad McWhinney, Troy McWhinney, And Brad Korzen Secure $298M Loan For Cal Neva Hotel Redevelopment.
Chad McWhinney, Troy McWhinney, AndBrad Korzen Secure $298M Loan For Cal Neva Hotel Redevelopment. The asset involved in this transaction is the historic Cal Neva Hotel, located at 2 Stateline Road in Crystal Bay, NV. The deal involves a loan amount of $298,000,000.00 with plans to redevelop the property into Lake Tahoe Proper Resort and Casino, which is set to open in 2027.
Summary of transaction details:
Property Type: Hotel
Transaction Amount: $298,000,000
Lender: Nuveen Green Capital & Banc Of California
Landlord: Chad McWhinney & Troy McWhinney - Realberry; Brad Korzen - Proper Hospitality
Financing Details: $223 million in C-PACE funding from Nuveen Green Capital for energy and water efficiency upgrades, plus a $75 million senior construction loan from Banc of California
This transaction features key figures such as Chad McWhinney and Troy McWhinney representing Realberry, along with Brad Korzen who represents Proper Hospitality. Their collaboration aims to revitalize the Cal Neva Hotel property, which has historical significance.
Nuveen Green Capital closed a $223 millionC-PACE loan, the largest RE LOAN in Nevada's history, to redevelop the historic Cal Neva Hotel into the Lake Tahoe Proper Resort and Casino ®. This is the first C-PACE transaction in Washoe County.
The project restores a historic site previously owned by Frank Sinatra.
Interior design will be led by Kelly Wearstler.
C-PACE makes it possible for commercial property owners to obtain low-cost, long-term financing for energy efficiency, water conservation and renewable energy projects. Most commercial property types qualify for C-PACE financing. The program starts with a state-level government policy that classifies clean energy upgrades as a public benefit – like a new sewer, water line or road.
These upgrades can be financed with no money down and then repaid as a benefit assessment on the property tax bill over a term that matches the useful life of improvements and/or new construction infrastructure (typically ~20-30 years). The assessment transfers on the sale of the property and can be passed through to tenants where appropriate.
Honoring the Cal Neva’s glamorous social history, the members-only Proper Club will feature a private indoor-outdoor clubhouse overlooking the lake, a Hi-Fi listening room and private wine cellars nestled in the hotel’s iconic tunnels. Members will also receive benefits throughout the property, daily access to the wellness amenities and year-round cultural programming. The Circle Bar, casino, new restaurants, the Showroom and the historic lodge will all be open to the public, rest of the property will be private member only access community. The resort, closed since 2018, was previously in bankruptcy.
