NAPA – RH, also known as Restoration Hardware, has purchased a historic Napa Valley resort property in a $25 million deal that underscores the retailer’s bet to diversify well beyond its core home furnishings business top of the line.
Napa Soda Springs, a famous property that houses an old complex dating back to 1856, was bought by HR, Gary Friedman, the company’s chief executive, revealed this week during a conference call with Wall Street analysts to discuss of the company’s second quarter financial results.
The site was purchased for $25 million by an HR-related subsidiary, according to documents filed July 1 with the Napa County Recorder’s Office. This news agency reviewed the deed of purchase.
“We just closed on 856 acres in Napa Valley,” Friedman said. “This is probably the most beautiful property in all of Napa. It belongs to us. When the property went up for sale in 2019, the size was estimated at 857 acres.
At the time of the purchase, the buying group obtained a $28.2 million loan from RH (Restoration Hardware), according to county documents and database records.
The final purchase price of $25 million was considerably lower than the $50 million that industry experts thought sellers were looking for when the property went on the market.
Located east of the Silverado Trail and north of the city of Napa, bordering the region’s major wineries, the property still contains ruins of the old resort town, including the remains of a rotunda in the shape of a castle and other ruined structures.
Ambitious plans are in the works for the historic old resort town, the RH CEO said during a conference call with Wall Street analysts to discuss the company’s recent financial results.
“There are still ruins. This is where we will build a guest house, residences and a winery,” Friedman said of the Napa Soda Springs property during the conference call. “We have one of the best soils in all of Napa Valley.”
Organic farms could be part of the renovated property, according to Friedman.
The property just purchased is one of the largest contiguous parcels in Napa Valley.
The first resort hotel opened on the Napa Soda Springs property in 1856. In 1877, a formal ball introduced guests to the newly opened Rotunda buildings. In 1881, the Soda Springs Resort was open to overnight guests.
In the early 20th century, with the onset of Prohibition and the disruptions of World War I, the station’s popularity declined. The station, however, continued to sell Napa Soda mined from the site’s sources.
A fire engulfed the property in the 1940s, although the soda bottling plant survived. A second fire in the 1960s ruined the remaining buildings.
Despite the fires, remnants of the rotunda and other intriguing structures survive to this day.
The property is close to world-class and famous wineries along the Silverado Trail and major highways through Napa Valley, as well as an array of upscale restaurants and accommodations.
RH, based in Corte Madera, has launched or is about to launch guest houses in some of the main destinations in the country.
In New York’s Manhattan neighborhood, the company recently opened RH Guesthouse, which includes six rooms, three suites and Friedman’s private residence, which takes up the entire top floor. The private residence is sometimes available for reservation.
Each of the rooms and suites at RH Guesthouse includes two full bathrooms, a freshly stocked gourmet pantry, an in-room fitness center and exclusive use of the private rooftop garden, swimming pool and pool area. dining terrace. The RH Guesthouse is located in Manhattan’s famous Meatpacking District.
A luxury Colorado resort is also in line for an RH guesthouse.
“We already have a second in Aspen,” Friedman said on the conference call.
An Aspen-based developer named Mark Hunt is working with RH on several real estate projects in Aspen. Hunt is also tied to the purchase of the RH property of the Soda Springs Resort land, according to county documents.
RH is also considering a makeover for his ruin-strewn property in Napa. The retailer intends to turn the former Napa Soda Springs Resort into the crown jewel of what appears to be a growing real estate empire.
“We’re going to build an experience the world has never seen,” Friedman said.
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