A resort and spa that still owed $21 million to Texans Credit Union has new ownership.
The Lakeway Resort and Spa in Austin, Texas, continued to operate while in the foreclosure process. The 174-room property was bought by Dow Hotel Co. and the Carlyle Group for an undisclosed price.
The new owners said they are planning $5 million in upgrades. Behringer Harvard Lakeway LLC, the resort’s previous owner, had just completed $15 million in renovations a few years ago.
The previous owners also owed the $1.4 billion Texans in Richardson, Texas, nearly $21 million on its property’s loan.
Behringer Harvard Lakeway said the economic downturn led to a drop in revenue from corporate meetings and other events. As a result, the property went into foreclosure despite an attempt to restructure the debt.
Texans was placed in conservatorship in April 2011 plagued by millions of dollars in commercial loan losses.
In May, the NCUA reported the credit union’s financials had started to improve. The agency said Texans had year-to-date net income of $5.87 million and $1.48 billion in assets, up from $1.42 billion at the end of 2011. Its net worth also improved by 35 basis points during the first three months of 2012, ending the first quarter at 1.42%.
For the first time since 2007, Texans turned a profit during the first quarter of 2012, according to the NCUA.