Florida Keys Resort Sold for $134 Million

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Carey Watermark Investors Incorporated has purchased the Hawks Cay Resort in the Florida Keys for $133.8 million.

Located on Duck Key about 100 miles south of Miami and 60 miles northeast of Key West, the resort includes 177 guest rooms and a resort residential management program with more than 250 two- three- and four-bedroom villas, the New York-based REIT said in an announcement. The property also includes five swimming pools, an 85-slip marina, tennis center and 10,000 square feet of retail and office space.  

Carey's total investment is approximately $149.4 million, which includes the purchase price and $15.6 million of planned capital improvements and other acquisition-related costs. The planned capital improvements include the renovation of guestrooms and public spaces, the redevelopment of the marina restaurant, enhancement of the pool and recreational areas, complete renovation of the two penthouse suites and the creation of 16 family suites.

"Given the limited number of existing resorts and restrictions on new development, the Florida Keys is one of the strongest lodging markets in the country,"  Michael Medzigian, chief executive of CWI, said in the announcement.

The deal was financed with $79 million of debt. The resort will be managed by Pyramid Hotel Group.