Witkoff and Len Blavatnik’s Obtain Real Estate have taken over possession of the troubled Banyan Cay Vacation resort & Golfing Club undertaking in West Palm Beach front, and landed a $75 million mortgage from the vendor.
A few entities managed by New York and Miami-Seashore-dependent Witkoff’s co-CEOs Steve and Alex Witkoff acquired the mortgage loan from an affiliate of Los Angeles-based Calmwater Money, information clearly show. The entities, earlier managed by Calmwater, now personal the 200-acre blended-use progress site at 200 Banyan Way.
In August, Calmwater took title of the assemblage following successful an auction in West Palm Beach federal personal bankruptcy court. Calmwater gained dependent on a $96.9 million credit rating bid that represented the debt the prior developer owed its affiliate, which was the largest creditor in the Banyan Cay bankruptcy scenario.
This month, administration of the a few entities was transferred from Calmwater to the Witkoffs, corporate documents display. The deal was not recorded through a general public deed that involves a purchaser to spend documentary stamp taxes. Witkoff and Entry, a New York-based mostly genuine estate expenditure business, compensated about $100 million, according to a supply common with the offer.
Calmwater controlling principal Larry Grantham declined comment about his dealings with Witkoff. And Witkoff executives did not react to requests for remark about their programs for Banyan Cay.
Witkoff experienced reportedly been eyeing Banyan Cay just before the personal bankruptcy when the former developer, Domenic Gatto Jr., was trying to get a customer for the mixed-use challenge. Gatto Jr.’s advancement entities accomplished and opened a new golfing program, and virtually finished a 150-space lodge. The task also bundled ideas for a superior-increase condominium, 33 single-family houses and 20 villas.
But less than Gatto Jr.’s possession, the project confronted delays because of to litigation from contractors alleging nonpayment of function and expert services at Banyan Cay. In 2022, Calmwater’s affiliate sued Gatto’s enhancement entity for allegedly defaulting on a $61 million building financial loan for the lodge. The very same loan company also furnished a $19 million design financial loan for the villas that was enhanced to $33 million.
Final 12 months, the Calmwater affiliate gained a $94.1 million foreclosures judgment in Palm Beach front County Circuit Court. Shortly thereafter, Gatto Jr.’s Banyan Cay entities submitted for Chapter 11 protection. Gatto Jr. is also dealing with an unrelated pending federal indictment charging him with conspiracy to commit well being care fraud.
Around the summer, Denver-centered Westside Financial commitment Partners backed out of its stalking horse bid to buy Banyan Cay for $102.1 million.
