Cheeca Holdings LLC--a company consisting of RockResorts, The Falor Cos. and Johnson Resort Properties--entered into an investment syndicate to purchase the luxury resort. Jones Lang LaSalle Hotels arranged the sale on behalf of an affiliate of Olympus Real Estate Partners.
RockResorts, which managed the resort previously, has a 20-year contract to continue managing the property, which is located about an hour and a half south of Miami. The resort is situated on 27 acres, which includes 1,100 feet of white-sand beach.
"The Cheeca Lodge & Spa has been extremely resilient during the recent downturn in the hospitality industry, which attributes to the prestige of the property and its excellent location," Gregory Rumpel, senior vice president of Jones Lang LaSalle Hotels who spearheaded the transaction, says in a statement. "With Cheeca Holding's anticipated $10 million capital investment plan for the property, Cheeca should continue to be a formidable presence among Florida's pre-eminent resorts. Not only is the resort performing well, there is also apparent upside potential."
The capital investment plan will entail "substantial upgrades" to the existing property, Rumpel tells GlobeSt.com. "The hotel itself started a renovations program just prior to the sale, and that included some of the beachfront units."
Rumpel says he expects the new owner to continue with that renovation program. "I believe it's going to include redoing all of the beachfront units," he states. Renovations prior to the sale included new bathrooms, flooring and a furniture package, he says.
Despite challenges faced by the Florida market, properties in the Florida Keys are drawing strong investor interest, according to Arthur Adler, managing director and CEO-Americas of Jones Lang LaSalle Hotels.
"The investor interest in this property was remarkable, with over 40 qualified parties reviewing the transaction," Adler says.
The Cheeca Lodge & Spa features a saltwater lagoon stocked with marine life, a 4,200-sf conference center, six lighted tennis courts, a Jack Nicklaus-designed par-3, nine-hole golf course, and a new spa, among other amenities.
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