Auerbach Funds, in a joint venture with a local sponsor, has sold Hotel Becket in South Lake Tahoe, California, US for a total valuation of $24.6m.
This transaction represents the fourth fully realised deal within the Auerbach Opportunity Fund III portfolio.
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The strategic location of the property, adjacent to the Heavenly Mountain Resort base camp, has been a significant factor in its investment appeal.
Auerbach Funds noted that the hotel’s proximity to key winter sports and summer outdoor activities made it an ideal candidate for its value-added initiatives.
At the time of acquisition, the two-building hotel featured a full bar and restaurant catering to the seasonal tourist influx.
Auerbach Funds initially purchased the property in 2021 for $15.4m.
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By GlobalDataDespite initial plans for a cosmetic renovation of the guestrooms and common areas, the decision was made to continue operations without these changes.
The South Lake Tahoe market experienced substantial growth during the holding period of the asset, Auerbach Funds stated.
Auerbach Funds managing member Peter Auerbach said: “We are extremely pleased on having closed our fourth full-cycle transaction in Fund III during our investment period and before the ‘hold’ period of our fund life.
“It is rare in a fund such as ours to cycle even one deal during this part of the Fund, let alone four. In this time of material distress and bad news in the real estate investment community, we are pleased to be able to continue to show our investors that we are able to generate strong returns even in the most difficult of vintages for funds.
“We are even further excited to use the proceeds of this transaction to capitalize on the many distressed and opportunistic situations available to the marketplace.”
Based in Charlotte, North Carolina, Auerbach Funds specialises in real estate private equity.
Since its inception in 2016, the company has acquired assets totalling over $740m in value at purchase, encompassing more than 7.1 million square feet across various real estate sectors.
The company’s investment strategy focuses on distressed, mismanaged, or underperforming assets throughout the US, including retail, multifamily, hospitality, senior housing, and speciality asset types.
