Burnet, TX (Burnet County)

Open to the public in December 1999, Canyon of the Eagles (COE) is the result of a unique public/private partnership between COE and the Lower Colorado River Authority “LCRA”, an Austin-based River Authority and quasi-state agency. The LCRA owns the 940-acre Canyon Of The Eagles tract with miles of frontage on Lake Buchanan and the Colorado River, Texas’ largest river. The property is located about 1 hour and 15 minutes northwest of Austin and 1 hour and 45 minutes north of San Antonio. COE has a long-term lease on approximately 45.809 acres of this property. The Lease has a primary term ending in about 40 years on January 29, 2048. In 1999, COE constructed lodge and park facilities on this 45.809-acre tract. In addition, COE has entered into an Operating Agreement, with the same primary term, whereby COE operates the entire 940-acre Park property.

The agreements with the LCRA allow COE to operate its hospitality and park facilities as a private, for profit, venture that is open to the public. The stated purpose of the Lease Agreement is to make the 45.809 acres available to COE “for the development and operation of a commercial recreation project.” The essential elements of the Lease Agreement provide that COE must pay the LCRA $20,000 per year in rent, plus a percentage of Annual Gross Revenue over $2,500,000. There are several other important provisions of the agreement that create obligations for COE. Copies of these Agreements will be made available to parties with serious interest. In addition, the LCRA is open to discussing modifications of the agreement based on the overall plan of any new owners. All communication with the LCRA should initially be through COE.

FACILITIES

The COE project was designed by award winning Lake Flato Architects from San Antonio, Texas. COE-owned facilities total more than 43,000 square feet of improvements, including 16 four-room lodging buildings for a total of 64 rooms. There are three styles of rooms: 20 Lodge Rooms with 2 queen size beds, 22 connecting Cottage rooms with 2 queen size beds, and 22 Cottage Rooms with 1 queen size bed and a window seat/children’s bed.

In addition to the 16 lodging buildings, the project includes a unique round swimming pool with running stream, the Eagles Nest Commons room, a large meeting room, lobby with store and office, and the impressive restaurant overlooking Lake Buchanan. These facilities are supported by a maintenance building/laundry and manager’s house.

In 2001, a modern 3,200 square foot conference building was constructed. It sits adjacent to the lodge compound and can be configured into one large room or divided into three smaller rooms.

Below the lodge compound (not Canyon of the Eagle's owned) sits the beachfront park store building and the dock for the Vanishing Texas River Cruise (VTRC). VTRC runs a tour boat operation with about 30,000 passengers per year. Their boats travel upriver to view the splendid Texas Hill Country, numerous waterfalls and seasonal Bald Eagles. Adjacent to the VTRC is the headquarters for Lake Buchanan Adventures (LBA). LBA operates an outfitting service providing rental kayaks and sailboats plus guided kayak excursions upriver and under the waterfalls. LBA also operates a seasonal snack bar.

In addition to the COE-owned facilities, the Park contains a gatehouse, a 25-unit RV park with a restroom/shower building, more than 45 campsites, an amphitheatre, and 14 miles of improved trails.

The final attraction in the Park is the Eagle Eye Observatory. This building houses two large telescopes owned by the Austin Astronomical Society. The facility is surrounded by a viewing field with numerous chart tables and has proven to be a big hit with COE guests who have never had the opportunity to professionally star gaze.

OPERATING RESULTS AND MOTIVATION FOR SALE

COE is owned by a diverse group of Texas-based investors. While the project has received critical acclaim and excellent weekend/holiday occupancy, the financial results have been disappointing due to low weekday occupancy. Since the property has operated near or above break-even for the last five years, there has been little capital available for FF&E, enhanced marketing efforts, or redirection of the operation. Ownership believes that the beautiful aesthetic nature of the project and its location near the rapidly growing cities of Austin and San Antonio offer an excellent opportunity for an owner with capital and vision. The historical results provide a reliable base of high-rated business to build upon.

REDUCED from $3,900,000 to $2,900,000.

There is an extensive amount of due diligence material available with the execution of a non-disclosure statement. This is a unique opportunity, contact us for more information!