LEAD | Two prominent restaurant and hotel properties in this historic mining town will in all likelihood see a change of ownership in the coming weeks.
One way or another.
According to realtor Jim Trucano of Keller Williams Realty of Rapid City, the former Golden Hills Resort and Black Hills & Pierre Roundhouse Restaurant are to be sold separately.
The hotel, with an assessed value of more than $2 million, is owned by a not-for-profit trust, while the restaurant, assessed at $1.1 million, is owned by a corporation, both controlled by the same individual, he said.
Trucano said the resort and restaurant have been on the market for more than a year. The owner decided to put them both up for separate auction, but with a contract allowing the properties to be subject to prior sale. Tulsa, Okla.-based Williams & Williams Real Estate Auctions are handling the scheduled March 29 auctions.
Trucano said a qualified offer was made on the Roundhouse restaurant within hours of the auction listing posted and that the offer was accepted.
Closing date is set for early March. Trucano was unable to release the buyer’s name or the selling price, pending completion of closing.
“If that (closing) happens, and we have every reason to believe it will, that property will be taken off the auction block,” Trucano said. “Then only the hotel will be auctioned, unless of course somebody makes an offer on that.”
Trucano said a $1 million reserve on the hotel also includes a $350,000 buyer credit at closing, coming in the form of an insurance proceeds check from damage from a hailstorm last June 29.
Several broken window panes are visible from the outside of the resort from the storm, which caused millions in damage in the central Black Hills, including a tornado in Spearfish Canyon.
The restaurant auction also included a reserve price of $600,000, but Trucano couldn't say if that reserve had been met in the qualified purchase offer.
The Roundhouse was completed in 1901 as a railroad maintenance and storage facility, known as for its semi-circular design for housing numerous locomotives or cars accessible by a single track. The former roundhouse was restored and reopened as a contemporary restaurant with a fully equipped kitchen.
The mezzanine contains a second serving area, atrium, and food staging room connected to the kitchen. The third level features a self-contained 7,000 square-foot event center. The restaurant includes a full liquor license purchased at auction last year.
The former Black Hills & Pierre Roundhouse restaurant was known for its Victorian atmosphere before closing late in 2017.
Across the street, the former Golden Hills Resort has 75 double rooms and 15 suites.
The pending change of ownership of the properties, either at auction or prior sale, means a new era for the hospitality industry for historic Lead-Deadwood.
“It's another chapter in the history of Lead,” said Trucano.