Lakeshore - property sold

[Swice]

The Business Journal is reporting the Grande Lakes property in Orlando containing both the JW Marriott and the Ritz has been sold. The vacation club property (Lakeshore) obviously was not sold.

The new owner of the hotels is promising renovations and improvements.

The article doesn't mention any impact on Lakeshore Reserve. I would imagine, just like other locations where a hotel is located next to a timeshare, the owner would continue to allow some access.

If anyone happens to be on a "presentation" in Orlando over the next few months, maybe you could ask the question about long term access and privilege agreements?

 

[hangloose]

Took a presentation this past week and their was no mention or comment confirming the above when the sales agent was asked. Can you provide more information?

 

[dioxide45]

https://www.orlandosentinel.com/bus...do-grande-lakes-ritz-sale-20181213-story.html

It seems it was just bought four years ago by Blackstone and is being resold. This won't necessarily mean a rebranding or anything changing. It is simply a change of the underlying owner of the property. Marriott will continue to manage it unless the owners decide to rebrand the properties. No sign of that.

 

[Iggyearl]

My eyeballs must be hooked up backwards. Blackstone bought the place for $1.3 Bil. Put in $53 mil. in improvements. Then sold it for $900 Mil. 4 years later. No wonder hedge funds have been lagging the market.

 

[hangloose]

Perhaps just the underlying owner, without changes to Marriott/Ritz management. As such, likely small unnoticeable changes from the end consumer perspective near term?

 

[jmhpsu93]

We'll be there in April - if we don't hear anything I'll be sure to ask.

 

[pedro47]

Why did Blackstone sell it for a loss? That is the question?

Was there a tax advantage to this move?

 

[Big Matt]

Blackstone's model is to buy a distressed or undervalued property, turn it around financially and sell it. They aren't in the market to take losses. That doesn't mean that they didn't take advantage to offset gains. Commercial real estate is all about how much cash flow you get out of the asset....treated like a bond. It could be anything from how they financed the purchase to their forecast of future returns. 400 million is real money, but a blip for a company like Blackstone.

My only other comment is that it is somewhat in the middle of nowhere and not dissimilar to luxury properties closer to the main attractions and downtown. They may have originally developed it hoping that more stuff would show up.

 

[jmhpsu93]

My only other comment is that it is somewhat in the middle of nowhere and not dissimilar to luxury properties closer to the main attractions and downtown. They may have originally developed it hoping that more stuff would show up.

Isn't it like 5 minutes from Sea World?

 

[Swice]

Yeah, about six or seven minutes from SeaWorld (and Grande Vista) -- but in the opposite direction from the tourist areas. It's hardly in the middle of nowhere. There are plenty of shopping centers and restaurants nearby-- but they are geared to the locals not the tourists.

 

[StevenTing]

My eyeballs must be hooked up backwards. Blackstone bought the place for $1.3 Bil. Put in $53 mil. in improvements. Then sold it for $900 Mil. 4 years later. No wonder hedge funds have been lagging the market.

There was also an Arizona property included in the $1.3B purchase price. We don't know which AZ property or the value of it.

Blackstone Group, which bought the hotels along with a Scottsdale, Ariz., property for $1.3 billion in 2015, engineered the sale after pouring $53 million into renovations during the past four years.

 

[Big Matt]

It's more like 10 minutes away and traffic get's crappy when you approach SeaWorld. It is near residential areas, but not much else. It was designed to keep you on the property and play golf. I drive past it on my way from Grande Ocean or Cypress Harbor to Costco. Not a lot going on.

 

[dioxide45]

I drive past it on my way from Grande Ocean

You must be taking a long detour?

 

[Big Matt]

Hahaha. Yes, takes a long time from South Carolina to get to the Orlando Costco. Good catch.

 

[Xpat]

There was also an Arizona property included in the $1.3B purchase price. We don't know which AZ property or the value of it.

It was the JW in Phoenix. I think they’re making a profit on this transaction.


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[tiel]

Just wondering, were there any changes to the privileges for Lakeshore guests at these properties, or any other changes noticeable to guests? I’m guessing no, it was just the underlying ownership that changed.

 

[jmhpsu93]

We were just there a couple of weeks ago (Easter week). There were supposedly use restrictions on the day we got there (Sunday) but not during the week. We could use the Ritz spa lap pool from 5-9 AM, too. We went over there anyway on Easter Sunday as we had dinner at one of the JW restaurants and we ordered a couple of beers at one of the pool bars, charged it to our LR room and no one said anything. We just piggybacked into the pool area. Place was PACKED. Much less crowded the next few days when we wandered over.

 

[Saintsfanfl]

There are usually wrist band blackout days on holiday weekends at all three pool areas. It usually has to do with the JW having an event where only JW guests are allowed. Blocking access at one triggers a block at all three.

For whatever reason Lakeshore started requiring wrist bands even though access wasn't blocked at the other two. Not sure if there are still doing this but it happened the last two times I was there.

On the Grande Lakes purchase the group that is buying I doubt will hold it long term. Like Blackstone they buy for value and will probably resell at some point.

 

[Saintsfanfl]

"deleted...."

 

[tiel]

Thanks for the replies! So it looks like little has changed, and certainly nothing significant.

 

[mj2vacation]

The Grande Lakes property has been bought and sold numerous times.

I’m hopeful that they will maintain it better than black stone. The JW pool are was really poorly maintained fir a few years.

None of this affects lakeshore.