Tahoe Biltmore Lodge may be sold at auction after developer defaulted in April

Several months after being served a notice of default, a developer now risks losing the project to transform the Tahoe Biltmore Lodge & Casino into the Waldorf Astoria Lake Tahoe.

A notice of trustee’s sale in July revealed that the Tahoe Biltmore Lodge & Casino property will be sold at a public auction on Oct. 8, previously scheduled for Aug. 13, as first reported by SF Gate .

The notice of sale by First American Title Insurance Co. detailed that the property would be sold at an auction at the Washoe County Courthouse to the highest bidder.

This follows a notice of default filed against EKN Tahoe LLC, the project developer, in April over an unpaid principal balance of $82 million.

The property will be sold “as-is” to pay the remaining principal on the loan, interest and other charges estimated at over $110 million.

What does this mean for the future of Waldorf Astoria Lake Tahoe?

EKN Development did not immediately respond to the Reno Gazette Journal’s request for a statement on Wednesday, but EKN Development President and CEO Ebbie Nakhjavani told SF Gate on Tuesday that “EKN is working diligently to restructure the existing loan and expects to complete this process in the next three to four months.”

“In the meantime, EKN is continuing to invest in the project and construction activities are continuing at the site,” Nakhjavani said.

The project, on the site of the former Tahoe Biltmore Lodge & Casino in Crystal Bay, is set to become Lake Tahoe’s first Waldorf Astoria. EKN, based in Newport Beach, California, acquired the property for $56.8 million in September 2021 .

The developer pointed to work already done, such as demolishing the property's cottages, as proof of its commitment to building the Waldorf Astoria Lake Tahoe despite the notice of default in April, the Reno Gazette Journal reported earlier this year.

EKN Development posted on Instagram in August that they were continuing site work at the former Tahoe Biltmore “with a focus on road construction and utilities.”

“We are incredibly excited to continue advancing this extraordinary project as we lay the groundwork for its next phase,” said Nakhjavani in the social media post.

Paris Barraza is a trending reporter covering California news at The Desert Sun. Reach her at pbarraza@gannett.com. Follow her on Twitter @ParisBarraza.

This article originally appeared on Reno Gazette Journal: Tahoe Biltmore Lodge may be sold at auction after developer defaulted in April