The sale of PGA National to Brookfield Asset Management ushers in a new era for the Palm Beach Gardens community, golf club and resort.
Last year, the PGA National Resort & Spa traded hands for $ 218 million, about $ 17 million less than the contracted selling price, according to the deeds recorded on December 31st with the County Clerk's Office from Palm Beach.
Four separate acts illustrate the impressive Palm Beach Gardens hotel complex sold to a Brookfield Asset Management subsidiary at a price below the contract price, which, according to real estate sources, totaled $ 233 million. Walton Street Capital was the seller and owned PGA National since 2006, when it paid $ 170 million for the property.
EXCLUSIVE: National PGA sold for $ 233 million
Over the past decade, Walton Street has spent about $ 90 million to upgrade the complex, according to Joel Paige, former general manager of PGA National.
Neil Merin, president of broker NAI / Merin Hunter Codman in West Palm Beach, said Walton Street had bought PGA National at a time when the market was too expensive.
Although Walton Street does not appear to be making much money for its investment, Merin said it was hard to know and there could have been years of good cash.
PREVIOUS HISTORY: PGA National Resort for Sale: Highest Price in 2006 Is $ 170 Million
Merin added that the downward adjustment of the closing price could have been due to physical inspections revealing the need for major repairs, a judicial review of operating figures not corresponding to the proposed materials, "or to a combination of both ".
Brookfield, headquartered in Toronto, was silent on plans for this complex, which hosts the Honda Classic golf tournament.
The National PGA is a residential golf club and resort located on 800 acres of PGA Boulevard, west of Turnpike, Florida. The property features five 18-hole golf courses, a 339-room hotel, 42,000-square-foot meeting space and a spa.
Paige said the resort could be elevated by Brookfield, which owns several prestigious properties, including Atlantis Paradise Beach Resort in the Bahamas, the Diplomat Beach Resort in Hollywood and General Growth Properties, owner of Mizner Park in Boca Raton.
The spa, for example, could be refreshed, Paige said.