Northview Hotel Group and Oaktree Managed Funds Acquire Three JELD-WEN Resort Communities
JELD-WEN Sells Running Y, RidgeWater, Eagle Crest and Brasada
November 20, 2010
BEND & KLAMATH FALLS, Ore. – JELD-WEN inc. is pleased to announce the sale of three resorts in Central and Southern Oregon to a new partnership comprising Northview Hotel Group (“Northview”) and a subsidiary of funds managed by Oaktree Capital Management LP. The sale includes Brasada Ranch in Powell Butte, Eagle Crest Resort near Redmond (Bend), and the Running Y Ranch in Klamath Falls. The sale also includes RidgeWater, a planned community near the Running Y. The transaction was facilitated by Bob Eaton of Colliers International, and JELD-WEN was advised by International Resorts in Development Service Inc. of Reno, Nev.
The divestiture does not include Silver Mountain, Harbor Isles, or the working cattle ranch located on the west side of Highway 140 across from the entrance to the Running Y Ranch Resort.
Northview will manage the resorts on behalf of the partnership, and it will oversee a strategic repositioning plan focused on enhancing the resorts’ amenities and the guest experience. David Zeuske, Northview partner and the president of NVHG Management, will oversee the management of the resort portfolio going forward.
“We are extremely excited to be involved with these three spectacular resorts and to have an opportunity to invest in Central and Southern Oregon’s tourism and real estate industries. JELD-WEN has created three well-built and well-planned communities that are already recognized for their exceptional offerings,” Zeuske said. “While I still entertain fond memories of my summers spent in Central Oregon, my partners at Northview and I are looking forward to creating lasting impressions for others at our new resorts for generations to come.”
“This is an important strategic decision for JELD-WEN, and I am very pleased that Northview is such a great fit for the resort properties’ strengths and future potential,” stated Rod Wendt, JELD-WEN president and CEO. “I am very appreciative of all of the employees of JELD-WEN Development inc.,” Wendt said.
Leading with a Hospitality-focused Approach
Northview’s hospitality-focused repositioning strategy at the three resorts will leverage the solid foundation created by JELD-WEN, starting with the exceptional team of managers and associates, almost all of whom will be staying on with Northview. In addition to bringing its proprietary management tools and systems to the resorts, Northview intends to invest in upgrades at all three properties: from lobby and guest room renovations at Eagle Crest and Running Y Ranch to a newly enlarged spa, a reconfigured lobby, new meeting space and significant landscaping upgrades at Brasada Ranch.
Northview partner Simon Hallgarten expressed confidence in his firm’s ability to realize the potential of each resort, citing recent experience at a project with similar scope managed by Northview in the Florida Keys. In 2007, Northview and its partners, Behringer Harvard and Five Star Realty, acquired Hawks Cay Resort in Duck Key, Fla. The resort includes a 177-room hotel, 297 privately owned villas, a full-service marina, numerous restaurants, a range of unique amenities and a successful real estate brokerage business.
At Hawks Cay Resort, Northview implemented a strategic repositioning strategy that included a $42 million renovation and significant improvements to the day-to-day operations of the resort, part of which involved working with the individual villa owners to create a new and enhanced rental management program. Under Northview’s management, Hawks Cay has been awarded the coveted AAA Four Diamond Award and was recently named by Travel + Leisure as one of the Top 50 Resorts in North America.
Resorts Cater to Outdoor Enthusiasts
Located just 16 miles northeast of Bend in Central Oregon, Brasada Ranch, developed by JELD-WEN in 2005, offers a sophisticated high-desert lifestyle experience. Covering 1,800 acres, Brasada Ranch features 80 upscale cabins that are rented on a nightly basis, a small boutique hotel, upscale dining options, an oversized fitness facility with three pools, a spa, a world class equestrian center and an 18-hole championship golf course designed by PGA Tour professional and Oregonian Peter Jacobsen. Brasada Ranch is located close to a host of exciting outdoor recreation activities, including numerous world-class golf courses in the Bend area, skiing, hiking, mountain biking, fishing, cycling and mountain climbing. Home sites at Brasada Ranch are available for sale. Northview’s goal is to establish Brasada Ranch as “the finest destination resort and residential resort community in the Pacific Northwest”.
Eagle Crest® is an established full-service destination resort located just outside the city of Redmond, and just 20 minutes from Bend, on 1,700 acres in Central Oregon’s high desert. The resort includes a 100-room hotel, three golf courses, fitness centers and pools, and a range of local amenities for outdoor enthusiasts including hiking, biking, skiing, rafting, fly fishing and snowshoeing. Northview plans to implement a strategic capital improvement plan that will include significant upgrades to the hotel rooms, hotel lobby, meeting space, golf courses and grounds.
Running Y Ranch is a full-service resort community located in Klamath Falls in the heart of Southern Oregon's Cascade Mountain range. Overlooking Upper Klamath Lake, this community features 3,600 acres of wooded hills and meadows, an 83-room lodge and Oregon’s only Arnold Palmer-designed championship golf course. The community features a range of well-appointed villas, townhomes and chalets. In the next few months, Northview intends to execute a capital improvement project focused on significant upgrades to the hotel guestrooms, lobby, exterior, golf course and grounds.
JELD-WEN inc. is the world’s leading manufacturer of reliable windows and doors with diversified interests in a variety of real estate-related businesses. Based in Klamath Falls, Ore., JELD-WEN began as a small Oregon millwork plant in 1960 and now has operations in more than 25 states and in 22 countries. JELD-WEN is proud to be celebrating its 50th year in business in 2010. In the mid-1970s JELD-WEN was involved in homebuilding ventures around Oregon and consolidated these efforts in 1982 under a new entity called Trendwest Development. Later, Trendwest Development operated separately from JELD-WEN inc. for about 10 years as it pursued a variety of real estate and other business ventures. In 1988 Trendwest Development bought Eagle Crest Resort in Redmond, Ore. After bringing Trendwest Development back into the JELD-WEN fold in 1992, JELD-WEN bought the Running Y Ranch property from Roy Disney, Walt Disney’s brother, and developed the Running Y Ranch Resort on that property over the ensuing years. JELD-WEN built Brasada Ranch in 2004 outside Powell Butte, Ore., and began developing RidgeWater, near the Running Y, in 2006.
About Northview Hotel Group
Northview Hotel Group, based in Westport, Conn., and San Francisco, Calif., is owned by Mark Mance and Simon Hallgarten. Northview was formed to make opportunistic hotel investments in the U.S. and overseas, and to provide hotel management, asset management and construction management services for owners and co-investors.
About Oaktree Capital Management, L.P.
Oaktree is a premier global alternative and non-traditional investment manager with more than $79 billion in assets under management as of September 30, 2010. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, high yield and convertible bonds, senior loans, corporate control (including power infrastructure), real estate, emerging market equities and mezzanine finance. Oaktree was founded in 1995 by a group of principals who have worked together since the mid-1980s. Headquartered in Los Angeles, the firm has approximately 600 employees and offices in 13 cities worldwide.