Luxury Resort Bought For $195M In Napa Foreclosure Auction: Report

NAPA, CA — Less than a year after facing a $230 million delinquency notice, Napa’s luxurious Stanly Ranch resort has found a new owner in the "world’s largest alternative asset manager," according to a report by SFGATE.

The property, which ended up owing $243.6 million in debt, was acquired by New York-based Blackstone Inc. for $195 million, Bloomberg first reported.

The foreclosure auction, initially set for February 27, was postponed and eventually took place on March 27 on Napa’s courthouse steps. The Napa Valley Register confirmed the sale price.

In a statement emailed to SFGATE, Scott Trebilco, senior managing director at Blackstone Real Estate, said, “We are thrilled to acquire Stanly Ranch, Auberge Collection in Napa Valley, a luxury resort just one hour from San Francisco, which we believe is well positioned to benefit from rising group and leisure demand for wellness and experiential travel, alongside the continued growth in corporate travel to the region as AI adoption accelerates.”

What was first pitched as a new gateway to luxury in Napa Valley, has turned into a high-stakes financial unraveling. The owners of Stanly Ranch, SRGA LP, defaulted on a $230 million loan in October, putting the resort on the path toward foreclosure, according to the Napa Valley Register and public documents dated Oct. 16. A separate $100 million lawsuit tied to the project has added another layer of uncertainty.

The resort, whose rooms were priced upwards of $1300 a night, was developed as a luxury entry point to Napa Valley, renowned for its Pinot Noir and Chardonnay. The sprawling 700-acre property near the junction of highways 29 and 12 includes 19 parcels of land and was the subject of a massive construction loan from August 2022.

Despite the calm, manicured wine-country setting, financial trouble appears to have begun in 2021 with the first liens against the property by workers. The $100 million lawsuit, filed by a group involved in developing the resort against investment partners tied to the project, was reported by the Napa Valley Register.

Blackstone, which oversees more than $1 trillion in assets, will keep the original management company in place, according to SFGATE.

Founded in Napa Valley in 1981, Auberge Resorts operates the high-end hotel chain globally, with its first hotel, the three-Michelin-key property Auberge du Soleil, a short drive north in Rutherford.

Opened in April 2022, Stanly Ranch is among the region’s newest luxury lodging options.

Read the full story at SFGATE.