The 172-acre Pala Mesa Golf Resort in Fallbrook has been acquired for an undisclosed sum.
The property was purchased by an investment team led by Anil Yadav, who is well-known in the franchise world for having acquired about 200 Jack in the Box (Nasdaq: JACK) franchises around the country, according to the Multi-Unit Franchisee publication.
The sale was handled by the Cincinnati office of Rockwood Real Estate Advisors and Lincoln Property Co.Pyramid Advisors, acting as a receiver on behalf of Greenfield Partners, sold the property.
The 1962-vintage Pala Mesa property, which consists of 133 guest rooms in 14 buildings, a championship golf course, restaurants and meeting areas, has been through at least a couple of major downturns. In 1980, when the then-owners tried to market the property as a timeshare, it didn’t go well, and the resort has had multiple owners that kept the property going with varying degrees of success since. The asset had been in receivership as recently as 2007.
Yadav, who is keeping all of the resort’s 130 employees, said while there are no immediate plans to expand the resort, he is planning to spend between $3 million to $4 million to upgrade each of the facilities, from the golf course to the resort’s signature AquaTerra restaurant.
“Our goal is to revive the restaurant, banquet area, hotel rooms, which are all dated and need an upgrade,” Yadav said. “Currently we’re just going to upgrade what we have.”
Yadav, who said his investment group has hotel and fine dining restaurant experience as well as the Jack in the Boxes, said managing the golf course will be the only thing new to him.
Pala Mesa has become known for its packages that include Temecula Valley wine tours or the bed-and-breakfast experience. Yadav said those packages should also continue as they have for the foreseeable future.
Terry O’Brien, managing director at Rockwood’s Cincinnati office, said Pala Mesa is a strong asset for Yadav’s portfolio.
“The Pala Mesa Hotel and Golf Resort is a very unique asset strategically located in Fallbrook. The new ownership may have several opportunities to enhance the property’s value in the future, including possible condominium development,” O’Brien said in a statement.
Pala Mesa's dining and lounge areas received a 7,000-square-foot renovation in 2004.
The Pala Mesa Golf Resort has been a regional destination for weddings, corporate retreats and golf vacations since its construction.
Rockwood Real Estate Advisors is a real estate investment banking firm offering financial advisory and transactional services for clients in the commercial real estate industry. The firm is expecting to complete $4 billion to $5 billion in debt, equity and sales transactions in 2012. Headquartered in New York, Rockwood has offices throughout the country and is a subsidiary of CW Financial Services.