Real Estate

Napa Luxury Resort Has 90 Days To Stop $230M Collapse: Report

Financial trouble and a lawsuit threaten the future of Stanly Ranch on the southern edge of Napa.

NAPA VALLEY, CA — A $230 million financial cloud now hangs over one of Napa Valley’s newest luxury resorts.

What was first pitched as a new gateway to luxury in Napa Valley is now, years later, facing a high-stakes financial unraveling.

The owners of Stanly Ranch have defaulted on a $230 million loan, putting the resort on the path toward foreclosure, while a separate $100 million lawsuit tied to the project adds another layer of uncertainty.

Find out what's happening in Napa Valleyfor free with the latest updates from Patch.

The resort entered foreclosure in October after the ownership group, SRGA LP, defaulted on a $230 million loan, according to the Napa Valley Register and public documents dated Oct. 16.

The owners have 90 days to resolve the debt, or the 700-acre resort could be sold at auction to the highest bidder. The filing on the sprawling Auberge property at the southern edge of Napa covers 19 parcels of land, according to reports.

Find out what's happening in Napa Valleyfor free with the latest updates from Patch.

In a region renowned for Pinot Noir and Chardonnay, developers pitched the property as a luxury entry point to Napa Valley.

The resort, whose rooms were priced upwards of $1300 a night, was designed for guests to move between vineyard experiences and a sprawling, tech-forward wellness retreat.

Yet beyond the calm, manicured wine-country setting, the project quickly became entangled in a high-dollar legal battle.The deed is dated to 2018.

But the financial trouble appears to have begun in 2021 with the first liens against the property by workers. According to the Napa Valley Register, a group involved in developing the resort has filed a $100 million lawsuit against investment partners tied to the project, adding another layer of uncertainty to the property's future.

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