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Park City, US 68°F

The Sky Lodge

The Sky Lodge

Park City Utah’s Historic Old Town

The Sky Lodge was a prestigious mixed-use luxury property of private residence club, hotel, condominiums, meeting facilities, spa, and restaurants...
The Sky Lodge was a prestigious mixed-use luxury property of private residence club, hotel, condominiums, meeting facilities, spa, and restaurants located in the heart of the historic Old Town in Park City, Utah.

Size of property

Heart of historic Old Town on prime corner.

Acquisition Cost

$50 million development costs including land purchase.

Keys

Over 50 bedrooms configured into 36 luxury hotel condominiums.

What we accomplished

We negotiated the site purchase in a prime downtown area and arranged $50 million of construction financing which included senior...
We negotiated the site purchase in a prime downtown area and arranged $50 million of construction financing which included senior bank debt, mezzanine debt, and preferred equity that preserved majority ownership for the development group. The financing sources were impressed with the favorable terms we secured which provided superior upside profit potential. The hotel was acknowledged in the media by numerous publications including Conde Nast Traveler who placed it on the “Hot List” for 2008.

Challenges

Prior development groups were not able to secure development financing, permits or property purchase terms. The project was a complex...
Prior development groups were not able to secure development financing, permits or property purchase terms. The project was a complex development that was located in the historic center of Old Town in upscale Park City and included Robert Redford’s Zoom restaurant. It also involved the sale of luxury condominiums as a private residence club with fractional use under the hotel operation.

ROI

Over $30 million of the $50 million funding was repaid before our local operating partner was unable to meet its operating budgets after the 2007 opening. Alchemy negotiated an amicable settlement with lenders, but other members refused to settle and so the property was eventually taken over by lenders in 2010.