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LONGBOAT KEY — Delray Beach-based Ocean Properties Ltd., owner of the Longboat Key Hilton Beachfront Resort, announced Tuesday it's formulating a joint venture with the Longboat Key Club and Resort and Loeb Partners Realty LLC for all of the resort's assets.
'¨'¨If the joint-venture partnership is consummated after an unspecified due diligence period, Ocean Properties would become an equity partner in Key Club Associates LP, the entity that owns the Longboat Key Club. '¨'¨
Ocean Properties Vice President Andy Berger, Loeb Partners Realty Vice President Adam Tegge and Longboat Key Club and Resort General Manager Michael Welly met with the Business Review Tuesday afternoon to announce the pending joint venture, which club officials are touting as the next step in a $400 million expansion and renovation plan that received town approval in June 2010. '¨'¨
Berger said there are no further details regarding its investment amount or the joint venture itself until the due diligence process has been completed.
'¨'¨A purchase and sale agreement for that equity stake has been drawn up, Berger and Tegge confirmed, and its signing is contingent upon the due diligence, which began Tuesday when Berger arrived on the Key to meet with club officials.
'¨'¨The due diligence period does not have a set timeline for completion and could last anywhere from 30 to 90 days, or longer.'¨'¨
Berger declined to comment when asked if the equity stake was a majority stake or a 50/50 stake in the resort. '¨'¨
What Berger did say was the Longboat Key Club and Resort “is one-of-a-kind here in Florida.”
'¨'¨“We operate more than 100 hotels, and these (types of resorts) don't come available that often,” Berger said. “When we got the call, we were intrigued and went to work.”'¨'¨
Berger said his company's plans for the club don't affect a planned remodel of the Longboat Key Hilton, on which he hopes to commence construction by May 2013. Berger also said his company's interest in the club as the managing partner includes plans for longtime manager Michael Welly.
To read more details about the deal, click here.
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