Legendary resort battered by competition
A Texas financial firm Hall Structured Finance of Texas has closed a new $29 million first-lien loan to renovate the historic Cal Neva Resort on Lake Tahoe, Nevada. The Sacramento Business Journal reports that the company hopes to raise more than $150 million for the project.
The 219-room, 10-story hotel and 6,000-square-foot casino is currently owned by Robert Radovan, co-owner of Criswell-Radovan, a California development company. Radovan acquired the Cal Neva in April of last year.
The resort?owned by Frank Sinatra from 1960 to 1963?was hard-hit by the recession and also was hurt by competition from Las Vegas and tribal casinos in California. It was forced to shut down in 2010 due to declining business.
“The Cal Neva Resort is rich in history and (Radovan) provided us with a viable and thoughtful business plan,” said Mike Jaynes, president of Hall Structured Finance. “The vision is to create a post-modern destination resort and entertainment venue?a modernized version of what it was like during Frank Sinatra’s day.”
“We’re all excited to bring the Cal Neva back to its former glory as the icon of Lake Tahoe,” added Radovan.
The renovation will cover the famous Circle Bar, the casino floor and the guest rooms. A resort-style infinity pool with two hot tubs will be added outside, along with a large deck looking over the lake.
