Co-sponsored by W.P. Carey and Watermark Capital Partners, non-traded REIT Carey Watermark Investors (CWI) seeks to invest in lodging and lodging-related properties. Today, the company announced that it has acquired the Sanderling Resort in Duck, North Carolina for a purchase price of $38 million. The company also paid an additional $10.1 million of other acquisition-related costs and planned capital expenditures. CWI financed the acquisition with $22 million of debt.
Located in North Carolina’s Outer Banks, Sanderling sits on 13 acres of land and is within driving distance of several major cities. With 106 rooms, the resort has received approval to add 24 guestrooms, which it hopes to have completed by spring 2015. The resort has 96 guestrooms housed in three guestroom buildings and five oceanfront and semi-oceanfront vacation homes. Amenities include five restaurants/bars, over 6,000 square feet of meeting space, a spa, two oceanfront pools, and more.
The resort will be managed by Northview Hotel Group, a company that has managed the resort’s daily operations since May 2012.
Michael Medzigian, Chief Executive Officer of CWI, commented, “Situated on one of the few remaining natural barrier island chains and proximate to several major markets, including Washington D.C., the Sanderling Resort is well-positioned to attract guests from the East coast. Our acquisition of the Sanderling Resort provided the opportunity to add a recently renovated and market-leading, oceanfront property that we believe has the potential to create long-term value for CWI’s portfolio.”
CWI was formed in 2008 and closed its initial public offering in September 2014 after raising $586.2 million.