Thursday, January 20, 2011

Dart Realty buy Courtyard Marriott Cayman Islands

In what is widely considered to be great news for Cayman Islands Real Estate Dart Realty (Cayman) Ltd. announced Wednesday that it had purchased the 232-room Courtyard Marriott hotel from developer Stan Thomas and his companies. The hotel closed after sustaining damage from Hurricane Paloma in November 2008 and hasn't reopened. In addition to the hotel, the Dart Group acquired other properties in that area that were owned by Mr. Thomas, including the Cayman Islands Yacht Club and about 1,500 feet of Seven Mile Beach property. In the mid-2000s, Mr. Thomas paid some US$100 million to buy a patchwork of properties, which comprise about 300 acres. It was reported that he would develop a five-star resort that included an 18-hole golf course, a marina and residences. The economic downturn that began in late 2007 and the ensuing credit crunch crushed the plans for development. In late 2009, the Atlanta Journal Constitution reported that Mr. Thomas and his company were experiencing severe economic difficulties. Dart Realty Managing Director Jim Lammers said there was an element of "land stewardship" that was discussed by the Dart Group when it considered the purchase, and the possible negative implications of having the properties get tied up in litigation for an extended period of time. In addition, Mr. Lammers said the properties were purchased "because we believe they hold great potential for development over the long term". However, Mr. Lammers stressed that the Dart Group would take time to decide how to develop the property, undertaking a thorough analysis first. "We'll use patience and a multi-disciplinary approach to make sure we do it right," he said. "We're lucky to have some patient capital and real long-term view on Cayman." Adding the newly purchased properties to adjacent landholdings already held by the Dart Group - including the Salt Creek development and the Camana Bay Nursery - amounts to more than 500 acres. Dart Realty's CEO Mark VanDevelde said the acquisition of the Thomas properties brings great opportunity as well as great responsibility to develop the lands with thought and care in a way that creates lasting value. Although the Dart Group will take time formulating a development plan, Mr. VanDevelde said some remedial work would start almost immediately to improve the Yacht Club marina, which has been in a dilapidated condition since it sustained significant damage during Hurricane Ivan in September 2004. "There are a lot of immediate steps we can take to improve it without significant capital outlay," he said. As for the hotel, Mr. Lammers said the general thought was that the Hurricane Paloma damage could be repaired and then the hotel reopened, although he couldn't give any timetable for reopening. "We're pretty comfortable it doesn't have to be razed," he said This article is shared from an original article in the Cayman Compass by Alan Markoff.

1 comment:

  1. Such big deals can take place in a beautiful place like Cayman only. This place has numerous property offers, small, mid-sized and huge. It has everything for everybody. Cayman estate agents always have great offers in the market.