Sale of Ormbsy House recorded today
The Ormsby House sold for $3.75 million cash, according to documents filed with the Carson City Recorder’s Office on Thursday.
Papers were filed with the recorder’s office at 4:25 p.m. indicating that Cubix Ormsby LLC closed escrow on the troubled casino.
There were no deeds listed, which the recorder’s office confirmed it was a cash transaction.
Cubix Ormsby partners Al Fiegehen and Don Lehr finalized a deal with Cerebrus for the 200-room hotel in September. The hotel/casino went through two bankruptcy proceedings in the 1990s.
Cerberus obtained the Ormsby House in a foreclosure sale in January 1998, a year after previous owner Barry Silverton defaulted on a payment to Cerberus on a $5.5 million loan. The Ormsby House has been for sale since that default in January 1997.
A public auction was held in May and a lone bidder, offered $2 million. That amount was rejected as too low and was later upped to $4.2 million, but negotiations with Cerebrus fell through. Cerberus appointed Bob Cashell to run the property.
The Ormsby House will be owned by Cubix Ormsby LLC, a wholly owned subsidiary of Cubix Corp. Fiegehen and Lehr founded Cubix Corp. in Orange, Calif., in 1975 and moved the firm to 2800 Lockheed Way in Carson City in 1979.
Cubix, which employs about 200, is a privately held company that manufactures computer equipment and software used by companies and government agencies to operate networks and host Internet services.
Cashell will stay on as general manager and, more importantly, as holder of the Ormsby House’s gaming license. Fiegehen and Lehr plan to get a gaming license, but the application process with the Nevada Gaming Commission could take up to nine months.
The Ormsby House Hotel Casino was built by Paul Laxalt, a former governor and U.S. senator, in 1972. The facility has had a number of owners over the past two decades including Woody Loftin, then his son after Loftin passed away, also Barry Silverton, a Las Vegas developer.