Domenic Gatto and the Banyan Cay Resort & Golfing Club at 2020 Banyan Way (LinkedIn, Hyatt)
A lender searching for to recoup $6.3 million in property finance loan credit card debt has initiated a UCC foreclosure sale for the distressed Banyan Cay Vacation resort & Golfing Club.
Banyan Cay Resort Fund has set a Feb. 17 auction for the West Palm Beach hotel and adjacent enhancement websites, in accordance to a discover of sale. Brock Cannon with Newmark is the broker. Moecker Auctions in conjunction with Mannion Auctions is dealing with the UCC foreclosure sale.
The profitable bidder stands to attain handle of the unopened 150-place luxurious lodge at 2020 Banyan Way, an adjoining 18-hole golf system created by Jack Nicklaus and surrounding loads the place the builders planned a large-increase condominium, 33 one-household residences and 20 villas.
Venture partners Domenic Gatto Sr., Domenic Gatto Jr., Kim Pilar and their growth entity Banyan Cay Resort & Golf, are also making an attempt to stave off a independent foreclosure lawsuit in Palm Seaside County Circuit Court docket filed by a different loan provider. In 2015, the partners paid $26 million for the property formerly acknowledged as The President Region Club.
Stanley Klett Jr., an lawyer for the builders, declined comment. Their other law firm, Gerard Catalanello, did not react to requests for remark.
The Banyan Cay challenge has been mired by delays and funds problems. In addition, just one of the partners, Gatto Jr., was federally charged past year with conspiracy to dedicate healthcare fraud in connection with an alleged $65 million scheme.
In July, U.S. Serious Estate Credit rating Holdings III-A sued the builders for alleged nonpayment of a $61 million development loan to create the resort. The Gattos and Pilar also secured a $19 million building personal loan for the 22 villas that was enhanced to $33 million in January, in accordance to the complaint. The mortgages are structured so that both of those financial loans are in default if both one turned delinquent, the lawsuit states.
The developers failed to attain a certificate of occupancy for the lodge to open by April 30, and the job needs yet another $13 million to end building, the criticism alleges.
Task contractors also have pending lawsuits in opposition to the builders alleging nonpayment.
