Hawks Cay Resort

Duck Key, FL

Property Characteristics

• Performing A1 and A2 senior notes secured by a resort hotel

Acquisition

• September 2011

Investment Opportunity

• Notes purchased at a substantial discount to par
• First mortgage loans were originated in February 2007 prior to the economic downturn
• Florida Keys lodging market has been historically defensive and resilient

Execution

• Partnered with an institutional fund and developer to purchase the notes
• Borrower sold the resort in October 2013 to a lodging REIT for $133.8mm
• Collateral sale resulted in a payoff of the notes at par in October 2013