Luxury Ski Resort in Utah Scores $60M Refi

The loan will also cover the facility's expansion, which is expected to begin later this year or in early 2019.

St. Regis Deer Valley in Park CIty, Utah
St. Regis Deer Valley in Park City, Utah

Sonnenblick-Eichner Co. has arranged $60 million in financing for St. Regis Deer Valley, a AAA Five Diamond year-round destination resort in the Deer Valley ski area in Park City, Utah.

The non-recourse financing was funded by a domestic life insurance company in what S-E described as “a highly structured transaction.” Proceeds were used to refinance existing debt with a new long-term, fixed-rate loan and to provide for the development of the resort’s next phase, which will include additional condo and hotel units, a destination restaurant, and other resort amenities. Construction on that next phase is expected to begin later this year or in early 2019.

The property’s owner reportedly is a joint venture of a privately held East Coast real estate company and a Hong Kong investor.

Deer Valley is recognized as one of the finest destination ski resorts in the world. With its year-round amenities and the successful history of condominium and private resident sales, the transaction was ultimately structured with a life insurance company who fully appreciated the intrinsic value of the asset in underwriting the collateral for the loan,” S-E Principal David Sonnenblick said in a prepared statement.

The ski-in, ski-out facility offers 67 hotel condominium suites divisible into 177 hotel keys and 25 private whole-ownership residences. Amenities at St. Regis Deer Valley include:

  • spa and fitness facilities
  • J&G Grill
  • a signature restaurant
  • a private club

A long and busy history

Deer Valley was purchased last August, before it was a St. Regis, by affiliates of KSL Capital Partners and Henry Crown & Co.

Those two entities had just weeks prior finished combining Intrawest Resorts Holdings Inc., Mammoth Resorts and Squaw Valley Ski Holdings into one company, which owns 12 four-season mountain resorts with 6 millions skier visits and 20,000 skiable acres, along with “significant land available” for future development.

This is the third financing that we have arranged for the ownership, including a $212.5 million construction loan and a subsequent permanent loan,” added S-E Principal Elliot Eichner. The $212.5 million loan was arranged way back in July 2007.

Image courtesy of Sonnenblick-Eichner Co.