North Lake Tahoe’s Cal Neva Lodge is steeped in history. The original property was built in 1926, rebuilt in 1930 after a fire and was purchased in 1960 by Frank Sinatra and Dean Martin. The resort hotel-casino was operated by numerous owners and it went into bankruptcy in 2013 with the Criswell-Radovan, LLC group purchasing the property. The Criswell-Radovan group announced a re-opening for December 2014, followed by a few announced construction delays and filed bankruptcy in 2016.
In the fall of 2016, the Reno based U.S. Federal bankruptcy court was assigned the case against the Criswell-Radovan group. The case transferred from the Santa Rosa federal court office because many of the 40 plus liens filed were Nevada-based sub-contractors and investors.
In 2016, the Cal-Neva was listed for sale with San Francisco’s CBRE hotel division. March 22, 2017 became the court bid date for offers with the set opening bid in the $34 million range. Once the first bid was received, other bidders could submit offers requiring a 10% bid increase and the highest final offer would take over the Cal Neva. There were three groups interested in the Cal-Neva. No bids were received by the court.
With a current status of no offers, the Reno federal courts may receive a bankruptcy bid as early as May 2, 2017. The buyer might be able to purchase foregoing all junior liens and a purchase price somewhere in the $25 million range. This potential bankruptcy sales status means local investor groups and local sub-contractors are probably not receivers of the final bankruptcy funds distribution.
The great news is there should be a new owner and this property is a key economic boost for North Lake Tahoe’s tourism industry. The rooms in the hotel tower are fully remodeled. The casino, restaurants and other hotel facilities require around $24 million to fully complete the project.