LAKE TAHOE, Nev. – A $298 million financing package may soon change the state of the Cal Neva. The historic venue is one of a handful of major properties at North Tahoe’s state line that once welcomed visitors, but are now boarded and fenced, creating somewhat of a hospitality desert there.
Colorado-based real estate investment and development firm, Realberry, along with hospitality management company, Proper Hospitality, announced the recent closure of the large financial deal on April 2.
100 years after it first opened, the financial package marks a new chapter for the Cal Neva, set to open under a new name in 2027 as the Lake Tahoe Proper Resort and Casino.
The name is on brand with other Proper Hospitality brand hotels in Santa Monica, Downtown Los Angeles, San Francisco, and Austin.
The resort and casino will include 197 guest rooms, suites and private villas, two pools, a spa, recreational facilities, meeting and event spaces. The owners are incorporating the Cal Neva’s iconic circle bar as an anchor for the resort’s other bars and multiple restaurants.
At its peak in the 1960s, the Cal Neva drew many Hollywood names, including Marilyn Monroe, Dean Martin and Sammy Davis Jr., as well as political figures like John F. Kennedy. Rumors still swirl in local gossip mills about what happened at the location where private tunnels add to the mystery.
The Cal Neva, which closed in 2013 for renovations, was also known for its showroom, designed for performers to see every face in the crowd. It was the largest non-amplified theater of its time. Plans include restoring the 225-seat theater.
Since its closure in 2013, the once lively place has had a rocky ride, passing through hands via bankruptcy court and other transactions.
It came into the current ownership’s hands in 2023.
“Cal Neva is one of the most storied hospitality properties in the West, and we feel a deep responsibility to get the execution right with Lake Tahoe Proper,” said Chad McWhinney, CEO of Realberry.
Realberry and Proper Hospitality envision a full-scale restoration to preserve the property’s architectural character and cultural significance, while transforming it into a design-driven destination. Los Angeles-based designer, Kelly Wearstler, is taking the lead on that design, a global name who has taken point on other Proper brand hotels and a Four Seasons.
A significant portion of the funds ($223 million) comes in C-PACE (Commercial Property Assessed Clean Energy) financing, a low-cost financing mechanism for projects tied to energy efficiency, water conservation, and renewable energy projects.
“It’s exciting to see the Lake Tahoe Proper team take advantage of C-PACE financing to improve the resort’s energy efficiency,” said Brian Beffort, Washoe County Sustainability Manager. “These investments will help reduce energy use and lower their energy bills. More importantly, these investments will reduce dangerous emissions, which in turn will keep air quality healthier and views more beautiful in the Tahoe basin.”
This is the first transaction of this type in Washoe County and the largest in Nevada.
The remaining $75 million in the financing packages is a construction loan from Banc of California.
