Witkoff, PPG Recap South Florida Golf Course With $55M ConnectOne Loan
The loan comes as part of a larger move from The Witkoff Group and PPG Development to form a joint venture to expand the golf course resort
The Witkoff Group and PPG Development have formed a joint venture and landed $55 million in financing for the recapitalization of a private golf course resort near Miami, paving the way for new development on the property, Commercial Observer has learned.
Newmark’s Dustin Stolly and Jordan Roeschlaub led the arrangement of the transaction, alongside Nick Scribani.
“This is a generational opportunity to create a world-class golf community in Greater Miami,” Alex Witkoff, principal of Witkoff said in a statement. “There is a scarcity of waterfront, developable land in South Florida and the barriers to entry to create a facility with this amenity package are incredibly high.”
Located at 501 Diplomat Parkway, the Diplomat Golf Club comprises an existing 60-key hotel, a spa and a 18-hole golf course designed by former world number one golfer Greg Norman. Current amenities on the 130-acre property include a members-only clubhouse, a 48-slip marina and 10 tennis courts. It also includes entitlements for future development.
Witkoff and PPG said their partnership and this recapitalization enables the second phase of development, which includes the extension of the golf course, a 15-acre golf practice facility, and a new clubhouse that contains multiple food and beverage outlets. Expansion plans also call for a new spa, a ballroom, 60 guest suites and condo-hotel units with ocean views.
“We look forward to partnering with Witkoff on the next phase of the development,” Ari Pearl, founder and CEO of PPG Development, said in a statement. “Witkoff is a national leader in developing true luxury and they have a passion for the game of golf.”
As it relates to luxury, Witkoff recently refinanced its West Hollywood EDITION Hotel and Residences at 9040 Sunset Boulevard in Los Angeles with a $230 million debt package from JPMorgan Chase and Mack Real Estate Credit Strategies, as CO previously reported. In early August, the West Hollywood EDITION’s 20 luxury condominium residences had been sold out, with prices ranging from more than $4 million to around $25 million.
ConnectOne Bank did not immediately respond for comment on the recap.
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