A stellar location for 52 years on the Oregon Coast, a scenic golf course with Pacific Ocean views and a $7 million remake over the past two years haven't been enough to keep one of Oregon's renowned resorts operationally afloat.
As a result, Salishan Spa & Golf Resort, a 205-room resort on 250 acres south of Lincoln City in Gleneden Beach, is heading to the auction block later this month.
Real estate auction company RealINSIGHT Marketplace will conduct the two-day Salishan auction starting Sept. 26. The listing notes that the property is a real estate owned asset, which essentially means it is a bank-owned property that has been foreclosed upon. CBRE Capital Markets is also marketing the property.
The minimum starting bid for the resort is $5.25 million.
The financial history of the resort is a somewhat complicated one. Originally built in 1965 by developer John Gray, Salishan sold in 1996 for $25.3 million to a foreign company called Lend Lease. The latter then sold it to Spring Capital Group in 2003 for $13 million, a sizable decrease in value.
The resort continued to falter financially through the Recession, and about two years ago, it went into receivership and through bankruptcy court. Special servicer CW Capital Capital Assets, which also served as the receivership group, brought in Crescent Hotels & Resorts to take over management, but the resort continued to struggle financially and operationally. Not even a two-year, $7 million remodel that wrapped up last year seemed to help.
As a result of the judgment process, the bond holders, who foreclosed on the owners, now own the resort and have opted to auction it off.
Chris Burdett, a senior vice president with CBRE Hotels in Seattle who is working on the auction, said that CW Capital, in representing the bond holders who foreclosed on the owners, believes "now is the time to sell the asset after spending more than $7 million over the last two years in renovations."
"Salishan Resort is located in a beautiful setting along the Oregon Coast, and we expect to garner interest from investors across the country," he said.
Lindsey Youngren, director of sales and marketing for Salishan, said in a statement that the resort is looking forward to a new chapter.
“We were thrilled that CW Capital saw the potential in Salishan when the company purchased the property out of receivership a few years ago. They’ve been a good owner, investing in the property to help us achieve some great milestones in the last few months,” said she said. “We see new ownership as an exciting opportunity to continue the momentum we’ve recently established with our renovation, launch of (the restaurant) Samphire, a new leadership team and a focus on an enhanced guest experience.”
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