$29,000,000 for the Acquisition of the Aetna Springs Resort in Napa County

Transaction Description: George Smith Partners secured $29,000,000 for the acquisition of the Aetna Springs Resort, a rare historic site in Napa County, CA. The Aetna Springs Resort dates back to the 1870’s and is the last available parcel entitled for resort development in the Napa Valley area. Upon completion, the Property will be expanded to include 88 luxury suites, 16 adjacent estate lots averaging 50-acres each, and a permitted winery.

Challenges: While investors were intrigued by the location of the Resort, the 3,100 acres of land included 2,390 acres of land that was not adjacent to the Resort. Many investors shied away from the deal given the complexity of the collateral. Other investors were more conservative towards land loans given our point in the cycle.

Solutions: George Smith Partners located an investor who understood Napa hospitality and understood the value in a new resort. They also took the time to understand the land/vineyard component of the collateral and were able to provide a structure that gave the Sponsor time to sell the non-adjacent collateral in an effort to maintain focus on the resort component.

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