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Calmwater Capital issued a short statement on Wednesday pledging to finish the hotel that was not finished.
Los Angeles-based lender has hired crews for the completion of 150-room resort and hotel. The facility will include three restaurants, a fitness and spa complex, a wedding venue, meeting spaces, and banquet rooms that can accommodate up to 200 guests. Calmwater also said that the resort will feature a resort style pool and pickleball court.
Calmwater Capital announced that the Jack Nicklaus Signature Golf Course, which is a 130-acre 18-hole course, will reopen on Sept. 30, in addition to the completion of the hotel. The golf course was closed in August when a prospective buyer, Westside Capital, of Denver, did not follow through with a $102.1-million purchase of the hotel.
The Jack Nicklaus designed Banyan Cay golf club, part of a bigger development in West Palm Beach (courtesy of Banyan Cay Resort & Club).
Banyan Cay was left with no other choice than to accept the $96.5 million credit offer from the lender after Westside decided not to complete the sale. This amount is a reflection of the debt owed to the golf club and hotel.
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The hotel was to be opened as the only Destination property in Florida. It’s now not clear if the Hyatt name will stay. Calmwater stated that the brand name and time frame for completion would be revealed at a future date.
The latest twist in the story of the struggling resort and golf course, located east of Interstate 95 on Congress Avenue north of Palm Beach Lakes Boulevard.
In 2011, the property was sold for $11,000,000 to an investor group. e
To the dismay of the Lands of the President, a community that overlooks Banyan Cay, construction of a resort was delayed. Residents of a new single-family development, Residences at Banyan Cay, by SobelCo in the adjacent area, were also supposed to have access to the hotel club when they purchased their homes.
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In a complaint filed in Palm Beach County Circuit Court on July 16, U.S. Real Estate Credit Holdings III A L.P. (Calmwater Capital’s affiliate) claimed that Banyan Cay had missed the deadline to open the hotel before April 30.
Calmwater Capital sought repayment for two other loans. The first was a construction loan of $61 million to build the Banyan Hotel. Another loan of $24 million was given for the construction of almost two dozen villas that were not yet built on the property.
In February, Banyan Cay lost the case and two final judgments were issued in Calmwater Capital’s favor. The total judgment was more than $95,000,000, which includes interest and loans.
Banyan Cay filed Chapter 11 bankruptcy in March, hoping to find a buyer who would pay more than the loan amount.
The Jack Nicklaus designed Banyan Cay golf club, part of a bigger development in West Palm Beach (courtesy of Banyan Cay Resort & Club).
e Westside’s enthusiastic official stated in June that the project would need about $5 million to complete construction. This included the completion of exterior amenities like the pool deck.
But Westside didn’t close the deal. e
Banyan Cay, represented by Miami attorney Joseph Pack, lost millions of dollars when Westside failed to complete the acquisition for $102.1 million. The property was returned to the lender to pay the loan amount. Banyan Cay’s court documents show that it believes Westside committed fraud and intentionally misrepresented itself.
