LAKE COUNTY — Konocti Harbor is on the market for the third time this year.
This is the first time it”s been publicly listed; a move owner”s hope will attract a wide array of prospective buyers, including hotel owners, developers and marina owners.
Twice this year, escrow has been dropped by potential buyers.
It is listed by Irvine-based Atlas Hospitality Group, a hotel-sales brokerage firm.
The firm is representing WhiteStar Advisors of Florida, asset managers hired by the owners, Local 38, a union representing plumbers, pipefitters and journeymen. Local 38 was under investigation by the U.S. Department of Labor for using member benefits to bolster the money-losing resort. The federal lawsuit was settled earlier this year.
Local 38 has owned the resort for about 50 years, as part of its Convalescent Trust Fund, a retirement fund for the union. According to the U.S. Department of Labor, about $36 million in member benefits were funneled into the Konocti facility. As part of the federal settlement, Local 38 hired WhiteStar Advisors to oversee the operations and sale of Konocti Harbor.
Although there is no price tag for the 56 acres for sale, a past bid during a considered purchase was for $25 million, but that was for a different package than what is listed for sale today.
The absence of a price tag is strategic, according to Atlas Hospitality President Alan Reay.
“Obviously it appeals not just to hotel players?there is the marina and amphitheater and additional land. Actually, depending on the user, it has a lot of different values. From that standpoint, we”re looking for a price that a developer will pay, a hotel owner will pay, and a marina business will pay. We”ll see what the market will place it at. We have literally just started marketing it,” Reay said.
According to Reay, the previous $25 million price tag may have included the entire project. The 56 acres currently listed is actually just half of the entire property.
Local 38 maintains the additional, approximately 50 acres as a summer camp for union members” children. Called “Camp Konocti,” it is a collection of cabins on the Konocti Harbor property that include a full kitchen, lake access and instruction in sailing and water sports. According to the Local 38 Web site, the camp is in its 44th year of operation.
WhiteStar has been working on selling the property for two years. Last spring, Kenwood Investments dropped its bid and escrow failed to close after a proposed Indian casino on the property incited disapproval in the community.
Page Mill Properties of Palo Alto also considered purchasing the property, reportedly for $25 million, but decided against it.
On top of the acreage, 255 guest units, a 100-boat slip marina, a 5,000-seat amphitheater, 20,000 square feet of meeting space, a 1,000-seat indoor showroom and a 19,000-square-foot spa are for sale.
A departure from previous deals, the listing states the resort will be sold without management or franchise encumbrances, in other words, the new owner will not have to keep management staff.
“[During previous potential sales] the seller was looking at individual offers. This time what”s different is the seller has an opportunity to mass market the property, and look at a number of qualified buyers at one time,” Reay said.
He said his firm hopes for a sale by the end of the first quarter, citing a good market for hotel resorts such as Konocti.
“I think there”s a lot of buyers for this, it”s such a great location, with its proximity to the wine country and the Bay Area. It”s irreplaceable real estate that”s very hard to duplicate, Reay said.
Contact Elizabeth Wilson at ewilson@record-bee.com
