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