Colorado-based Westside Investment Partners lodged a $102.1 million bid for embattled Banyan Cay Resort and Golf Club.
The parent company of the hotel-anchored mixed-use project in West Palm Beach filed for bankruptcy protection in February, after facing foreclosure. In March, the project’s development entity also filed for Chapter 11 reorganization, with a plan to sell the 200-acre property to pay off debtors.
Court documents show Westside, which operates large multifamily projects in Denver, was approved as the stalking horse bidder for the property, thereby setting the lowest possible price for the property.
The potential purchase comes with several bid protections for Westside. In the event that Westside loses the bid, the firm may be entitled to a “break-up fee” of $3 million and $300,000 in expense reimbursements, court records show. The break-up fee and reimbursements may be converted into liens on the property once a sale closes. Any additional bidder must offer at least $5 million more than Westside’s bid.
The deadline for bids for the property is June 8. New York firm Keen Summit Capital Partners will continue to market the site until the deadline.
The court also approved $375,000 in debtor-in-possession (DIP) financing to keep the golf course running. In its petition, Banyan Cay said that it already owed $10,093 in unpaid wages. The resort has a total of 38 employees.
Domenic Gatto, Jr., the developer of the property, bought the site for $26 million in 2015. The complex, at 2020 Banyan Way, consists of an 18-hole golf course designed by Jack Nicklaus and an under-construction Hyatt-branded hotel with 150 rooms. Gatto also owns lots adjacent to the resort. The parcels have entitlements for 179 condo units, 28 single-family homes and 22 villas.
Westside Investment Partners has several high-profile projects in Denver. On Wednesday, Denver voters rejected the company’s bid to convert the 155-acre Park Hill golf course into a residential and commercial complex. Nearly 60 percent of voters in the city rejected the plan, forcing Westside to continue operating the facility as a golf course.
The company has also received community pushback with its plan to convert a 72-acre Denver campus called Loretto Heights into a housing, retail and office development.