Turnbridge Equities closed on a debt-laden piece of land in a desert resort city, The Real Deal has learned.
The real estate investment company purchased the SilverRock Resort development in La Quinta out of bankruptcy for $65 million, a steep discount compared to prior debt and value estimates. Turnbridge is planning to develop a luxury hotel, branded condominiums and estates. Phase one of the development is estimated to cost $735 million.
Lionheart Strategic Management provided pre-development financing. Newmark’s Adam Doneger, Nick Scribani and Blake Thompson brokered the debt deal.
The unfinished resort’s prior developer, Robert Green, defaulted on debt and later filed for bankruptcy — $270.5 million in claims, all told, according to a person familiar with the matter. The Robert Green Company did not immediately respond to a request for comment.
Prior estimates put the property’s value at $300 million to $400 million, the Desert Sun reported.
The 130-acre purchase comes after years of delays and about a year in bankruptcy court. The deal works out to $500,000 per acre and was approved by the court in October.
Turnbridge wanted to purchase the development as soon as it entered bankruptcy, founder and managing principal Andrew Joblon said. Turnbridge West Coast managing director Michael Gazzano is on the project.
Green, who was sued by the city over delays before declaring bankruptcy, led the project for a decade. He had plans to develop residential, commercial and two hotels on the land. The hotels were supposed to have Montage and Pendry flags.
Turnbridge plans to develop one five-star hotel, not two — although it hasn’t struck a deal yet. Estates and branded condominiums are part of the plan as well. The acreage is entitled for hotel rooms, condos and estates, and the company has options to buy another 200 acres. Once the hotel opens, the 165-acre SilverRock Golf Course, owned by the city but set to be transferred, would follow.
The property, at 79179 Ahmanson Lane, isn’t far from where the annual Coachella Valley Music and Arts Festival and Stagecoach Music Festival are held.
The site is within the greater Palm Springs area. It is near the Hideaway and the Madison Club, two ultra-exclusive golf and residential communities. The latter is home to some A-list celebrities and executives.
Read more
Development
Austin
How Turnbridge Equities built a $2B portfolio in under a decade
Development
Austin
Turnbridge leaves Four Seasons Lake Austin development