Five High-Profile Golf Resorts in Chapter 11 Bankruptcy
The resorts include Doral, Grand Wailea, LaQuinta, Claremont, and Arizona Biltmore.
Palm Coast, FL – February 5, 2011 – Five high-profile golf resorts sought protection from creditors through a Chapter 11 bankruptcy filing on Tuesday. The bankruptcy was initiated by an investor group headed by hedge fund Paulson & Co. The investment group seized the resorts from Morgan Stanley’s real estate funds through a foreclosure auction January 28.
The properties include:
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Grand Wailea Resort Hotel & Spa in Maui
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Doral Golf Resort & Spa in Miami
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Claremont Resort & Spa in California
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La Quinta Resort & Club also in California
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Arizona Biltmore Resort & Spa in Phoenix
The propety group also included two Orlando properties; JW Marriott Grande Lakes and Ritz-Carlton Grande Lakes as well as the JW Marriott Desert Ridge Resort in Phoenix. The eight resorts were purchased by Morgan Stanley in 2007 for a reported $4 billion. In all, the bankruptcy encompassed thirty affiliates of CNL-AB LLC according to court documents.
Paulson is offering the resorts $30 million of bankruptcy financing. Meanwhile, operations at the resorts are expected to continue normally.
The news comes on the tail of financial woes revealed recently at other luxury resort properties, including two well know southeast developers of luxury golf course communities; Reynolds Plantation [story] and Cliffs Communities [story]. At the exclusive Cordillera Golf Club [story] in Cordillera Colorado, members are balking at a 50% increase in annual dues from $12,000 to $18,000.
George
Mark to Market continues in ALL real Estate related commodities. Or, as a wise investor client once said to me " at a certain price gold is a bad investment or coal a GOOD investment".
Local Golf
I cannot help but wonder how our city owned golf course is doing? Have not heardone word since it opened. I drive past it every day and it never seems very busy. I thought they needed something like 200 rounds per day to break even. My guess is they are loosing money but our City Manager won’t say "SHIT" until he get’s the new City hall built. Probably all the4 bad news will come at one time, hopefully along with his departure.
The Ocean Course – Hammock Beach
What does this say to those opposed to limited developed that Adler wants? Would it save the Ocean Course?