The Crossing in South Lake Tahoe sold for $14.8M

SOUTH LAKE TAHOE, Calif. - The Crossing at Tahoe Valley has been sold by the Sutter Capital Group, the Sacramento-based investment company that bought the struggling factory store property at the Y just over five years ago.

Since that time it has become a popular corner for both locals and visitors with all but three of the 19 spaces filled. The current tenants are a Big 5 Sporting Goods anchor store, Lake Tahoe AleWorx, Rah Hair Salon, The Pourhouse, Sierra-at-Tahoe, Verde Mexican Rotisserie, T-Mobile, Bank of America, Replenish Tahoe, Emanate Gallery, Omni Yoga, Elevate Wellness, Ranch Store, Mountain West Sports, Earthwise Pet Supply. A new store, Cuppa Tahoe, will be opening in the coming months and will feature coffee, tea, books and meeting space.

The center was marketed as a "destination lifestyle shopping center" in "one of the world’s most renowned tourist destinations" and has been on the market for months.

JLL Capital Markets announced that it has closed the sale of the 46,041-square-foot development situated on 4.9 acres to a private investor who purchased the property in a 1031 exchange.

The new owner is listed on documents at Second Bay Holding Tahoe, LLC, a Redwood City, Calif.-based group. The name on the Secretary of State documents is Ming H. Lee, with a Bay Area attorney as their representative.

Originally constructed in 1973, Sutter Capital Group guided the property from an aging factory store outlet complex through a transformative renovation into what it is today.

The JLL Retail Capital Markets team representing the seller was led by Senior Director Eric Kathrein, Managing Director Bryan Ley, and Analyst Jake Dempsey.

“During the marketing process The Crossing saw significant interest and received multiple competitive offers due to the irreplaceable location and best-in-class tenant line-up in South Lake Tahoe,” said Kathrein.

“Sutter Capital Group was able to reposition the property into something special that has resonated very well with the local community and investors,” added Ley.

The purchase price was $14.8M according to a source close to the deal.

The leasing agent for the property, NAI Tahoe Sierra will be taking a bigger role in running The Crossing.

"We'll be in tune with the local community and culture," said Scott Fair of NAI Tahoe Sierra of their bigger role. He and his property manager, Stacy Westline, will be hands-on in managing the property for the new owner. He said that person will be in South Lake Tahoe in the coming weeks to meek the tenants.

Contact Stacy if interested in the three open spaces though they may be going quickly as some interested parties were waiting for the sale to be completed, said Fair.