Running Y Ranch resort on the market block

            The Running Y Ranch in Klamath Falls, one of three Oregon resorts acquired from window and doormaker Jeld-Wen in 2010, is now up for sale.

            CBRE Hotel group in Seattle is the broker for Northview Hotel Group, which also acquired Brasada Ranch in Powell Butte and Eagle Crest in Redmond concurrently with Running Y in late 2010 for an undisclosed price.

            Northview is backed by Oaktree Capital Management, headquartered in Los Angeles with offices in Europe, Asia, and the Middle East.

            Among a wide range of investments, Oaktree specializes in acquiring real estate debt intended to generate current income without controlling the underlying asset. Current information on the company web site notes a real estate portofolio valued at $244 million.

            Northview’s corporate profile says  that since 2004 the company has acquired more than $700 million in hospitality industry properties. In addition to the Oregon properties, the company now owns resorts in North and South Carolina and Florida, as well as a California hotel and others on the East Coast.

            Seattle brokerage CBRE’s offering brochure does not provide a price for the 3,600-acre Running Y, located  in an area along Klamath Lake.

            The assets in the offering include:

·        An 88 room lodge and conference center, which underwent a $3 million renovation in 2011, according to the offering.

·        51 sale-ready  lots and another 57 potential lots to make site ready  by a new owner

·        18-hole Arnold Palmer signature golf course

·        A utility company with 350 connections

·        The HOA management company with six separate associations

The offering brochure says the resort experienced “solid” and “accelerating” gross income that increased to $5.91 million in 2012, a 24% increase over the previous year, yielding net from operations of $260,635. Lodging occupancy was up more than 47% with room rates averaging nearly $96.

There was also “stable,” but not disclosed operating income  from the utility and HOA, which manages 1,149 custom homes and townhomes, the offering noted.

Northview is offering the resort “unencumbered” by debt or existing management. The hotel can also be acquired without brand affiliation, which is  now with IHG International’s Holiday Inn Resort group.