The sordid saga of Banyan Cay Golf & Resort continues. Keen-Summit Capital Partners LLC has been retained, under a Federal Bankruptcy Court Order, as the exclusive real estate advisor to market and run the competitive sale of 250-acre property in West Palm Beach that includes a Jack Nicklaus-designed golf course and a nearly complete 150-room Hyatt-branded boutique hotel. Banyan Cay also includes development sites approved for 179 condo units, and 22 villas plus additional development land.
The property’s current developers, owners and operators – Banyan Cay Resort & Golf LLC – this past March filed for Chapter 11 reorganization in West Palm Beach. The golf course, which opened in 2017, has been open since 2017 and has approximately 200 members.
According to Matthew Bordwin, Principal/Co-President of Keen-Summit Capital Partners LLC, several offers were received and stalking horse contracts selected for all of the debtors’ properties.
“It is not surprising as this is an exceptional opportunity in an extremely hot market,” he said.
Banyan Cay basically is the middle of West Palm Beach, five miles from the West Palm Beach airport and within easy driving distance of attractions in Palm Beach an Broward Counties. The resort, however, is not on the water, which could create some marketing challenges as its goes again such luxury resorts as The Breakers Palm Beach to its north and The Boca Raton to the south
Joe Pack of Pack Law, counsel to Banyan Cay, said “The debtors believe that a sale of the assets represents the best path to maximize value for all stakeholders.”
In conjunction with the work done by Keen-Summit initially, Pack filed with the bankruptcy court a stalking horse contract for $102,100,000, which sets a baseline for an overbid marketing process. In laymen’s terms, a “stalking horse’’ contract basically is a reserve bid that eliminates low bids.
“That contract and the bid procedures have been filed with the court but are subject to final court approval. Assuming all goes according to plan, we expect to have a robust overbid auction in June,” said Bordwin.
The auction is currently set to take place on June 13 with a bid deadline of June 8.
Photo Credit: Banyan Cay Resort & Golf
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