The two competing investor groups jockeying to buy Georgia's bankrupt Sea Island resort have come together on a joint bid to buy the luxury coastal retreat, the Atlanta Journal Constitution reports. At a public auction, a coalition of Oaktree Capital Management, Avenue Capital Group, Starwood Capital and Anschutz Corp. announced a joint bid to acquire Sea Island Co.-- including its luxurious Cloister and Lodge hotels and four golf courses -- for $212.4 million.
Before the deal is finalized, however, Sea Island’s creditors and a bankruptcy judge must approve the sale. Sea Island entered bankruptcy Aug. 10 claiming more than $1 billion in debts prompted by a badly-timed luxury renovation and an ambitious land development plan.
The would-be buyers are no stranger to snapping up distressed properties. Oaktree of Los Angeles and Avenue of New York are both specialists in that area. Starwood is a $16 billion private equity group that lately has been buying up distressed real estate. Its CEO, Barry Sternlicht, founded the now independent Starwood Hotels & Resorts Inc., and created the W hotel brand. Anschutz is an owner of sports franchises--including the Los Angeles Kings--and sports arenas around the world.