Carmel Valley to be renovated..

[PThomas]

..according to Golf World

financier John Pritzker paid "only" $20 million for the resort, at least $60 million less than the previous owner hoped for...Pritzker will invest at least $25 million to renovate Carmel Valley

[David Stamm]

In Carmel, CA? Didn't it have some recent work done on it already?

[Bob_Huntley]

..according to Golf World

financier John Pritzker paid "only" $20 million for the resort, at least $60 million less than the previous owner hoped for...Pritzker will invest at least $25 million to renovate Carmel Valley

Paul,

The proper name of the place is the Carmel Valley Ranch.

The previous owners tore the place up last year but made no structural changes of which I am aware.

The money being spent is on the the infrastructure of the hotel lodgings and the building of a spa and adding to the tennis property.

Property records indicated that it was sold for something like $18 million.

Bob

[David_Tepper]

Bob -

Doesn't $18-$20 million strike you as being VERY cheap, assuming the transaction includes both the golf course and the lodging properties?

DT

[Bob_Huntley]

Bob -

Doesn't $18-$20 million strike you as being VERY cheap, assuming the transaction includes both the golf course and the lodging properties?

DT

David,

Yes it does, but the Priztkers did not become one of the wealthiest real estate operators by oeverpaying.

Bob

[David_Tepper]

Bob -

At that price, I thought you might have bought it yourself!

DT

[Anthony Butler]

..according to Golf World

financier John Pritzker paid "only" $20 million for the resort, at least $60 million less than the previous owner hoped for...Pritzker will invest at least $25 million to renovate Carmel Valley

Paul,

The proper name of the place is the Carmel Valley Ranch.

The previous owners tore the place up last year but made no structural changes of which I am aware.

The money being spent is on the the infrastructure of the hotel lodgings and the building of a spa and adding to the tennis property.

Property records indicated that it was sold for something like $18 million.

Bob

The rooms and the amenities at the CVR have always been top notch. Especially if you have a fire going and company in your room at night.

No one stays there to play the golf course. It's a bad course on a fairly difficult property. The range is a nice spot to groove your swing when it's windy and you're playing later along 17 Mile Drive.

$18 million sounds cheap, even in this economy. You should be doing pretty close to that in yearly revenue. Does the PP include any debt on the resort?

[erichunter]

$50k/acre (approx 400 acres) and only 8 miles from Pebble.  I'm surprised it didn't attract a HNW individual.  Blackstone must have been bleeding money on hotel operations to sell at that price.  I assume subdividing and building homes isn't an option so either keep as hotel or one heck of a private ranch.

[Jed Peters]

In the 18 some-odd million they bought it for, was the debt included?

[Bob_Huntley]

$50k/acre (approx 400 acres) and only 8 miles from Pebble.  I'm surprised it didn't attract a HNW individual.  Blackstone must have been bleeding money on hotel operations to sell at that price.  I assume subdividing and building homes isn't an option so either keep as hotel or one heck of a private ranch.

Eric,

There is land for hotel additions and a Spa but I believe the residential lots have been sold out for some time.

The opposition to this property from day one was intense and at least one County Supervisor was defenstrated for accepting goodies from the developers. The whole project hung in the balance until a local hydrologist opined that the water for the ranch did not come from the Carmel River  Aquifer, although the Carmel River ran through the property; a peculiar decision.

Here on the Peninsula, 'Whisky is for drinking, water is for fighting over.'


Bob

     

[Dave Givnish]

If Blackstone dumped Carmel Valley at this price, what will they do with their other resort properties like the Boulders?