Archive for December 11th, 2012

Ravella, Casino MonteLago Sold for $46.8 Million

Tuesday, December 11th, 2012

Kam Sang Co., a California real estate firm based in Arcadia, has acquired the hotel Ravella at Lake Las Vegas and its adjoining Casino MonteLago for $46.8 million.

The casino building and the 349-room Ravella at Lake Las Vegas were purchased from Village Hospitality LLC, an extension of Deutsche Bank. The bank unit acquired the property in 2009 after the original owners filed for bankruptcy protection. Then known as the Ritz-Carlton, the hotel defaulted on a $103-million mortgage, leading to Deutsche Bank’s foreclosure on the property. The hotel was reopened in 2011 under its new Ravella name.

Kam Sang has expressed interest in the property as early as 2009, but the initial overture was rejected. This February, the company revived its purchase proposal to Village Hospitality, reportedly at a price lower than the original offer. A Kam Sang executive said their purchase timing now was great with Ravella having a nonbank owner. He added that their company has been eying acquisitions on the quality and scale such as this purchase. They intend to keep the Ravella for the long-term and consider other Las Vegas hotel opportunities, he said.

The Ravella purchase was the first acquisition of Kam Sang, a thirty-three-year-old development firm, outside of Southern California. In this area, the company owns not only hotels but also residential assets, retail shops, and restaurants as well as other mixed-use properties. The hotels in its investment portfolio include the Sheraton Hotel in Anaheim, Embassy Suites in Glendale, Courtyard Marriott in Baldwin Park, Rancho Cielo Estates in Rancho Sante Fe and Residence Inn by Marriott in La Mirada. Among its retail properties are Puente Hills East at the City of Industry, Simi Valley Town Center at Simi Valley, and Kaleidoscope at Mission Viejo. The majority owner of Kam Sang is real estate developer Ronnie Lam who likewise owns Tokyo Wako, a Southern California chain of sushi restaurants.