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Oceanfront resort, located in St. Croix, U.S. Virgin Islands.
Berkadia Real Estate Advisors LLC (“Berkadia”) is pleased to present, on an exclusive basis, the opportunity to acquire the Carambola Beach Resort (“Property”, “Asset”, “Hotel”, or "Resort"), a one of a kind beach resort located on the northern coast of St. Croix, U.S. Virgin Islands.
Originally developed in 1986 by Laurance Rockefeller, the founder of RockResorts, the Property is located along 1,500 linear ft. of oceanfront, most of which is sandy beach, on the north side of St. Croix, approximately 20 minutes (eight miles) from Henry E. Rohlsen Airport. The Resort was meticulously designed to embody luxury, evident in its meticulously crafted building infrastructure. Every guest key is an approximately 600 square foot junior suite with a large outdoor patio. All guestrooms offer beachfront locations or captivating water views. Additionally, half of the guestrooms boast impressive ceiling heights of up to 14 feet. 28 rooms already offer kitchenettes, while the remaining rooms have the plumbing and electricity infrastructure to add kitchenettes.
The Property is currently affiliated with Marriott as a “white label” property and is in the process of completing a Property Improvement Plan (PIP) to be rebranded under the Renaissance flag. Over the last 15 years, the Hotel has underperformed due to storm damage, deferred maintenance, and lack of capital investment. Current ownership has spent $10.5 million on the renovation since mid-2022, including all 150 guestrooms, the lobby area, the main restaurant, and purchasing, shipping, and storing most of the remaining furniture, fixtures, and equipment (FF&E) on site. Future ownership needs to spend approximately $4 million to complete the PIP renovation. Alternative branding options exist as well, including other brands within the Marriott family or other brand companies, with minimal modifications expected to the current PIP.
The Hotel is in an excellent location for snorkeling and scuba diving (shore diving to literally any depth without the requirement of a boat) and is at the trailhead of the most popular hike on the island to the Annaly Bay tidal pools. Notably, Carambola’s beach has been featured in multiple films, including the famous “Looking good Billy-Ray, feeling good Lewis” scene from the Eddie Murphy movie Trading Places, as well as the 1977 version of The Island of Dr. Moreau. The Carambola Beach Resort represents an excellent opportunity to invest in an expansive, beachfront Caribbean resort with the security of investing in an easily accessible U.S. territory governed by U.S. law. The Resort offers plenty of upside potential through renovation and multiple ROI projects, and the island offers owners significant tax-related financial incentives for their investment.
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LOCATION
Located in the Eastern Caribbean within the West Indies, the U.S. Virgin Islands (USVI) are situated about 1,100 miles southeast of Miami, 45 miles east of Puerto Rico, and neighbor the British Virgin Islands to the northeast. Although not part of the mainland, USVI came under U.S. jurisdiction in 1917 when the territory was acquired from Denmark. This unique territory status enables the USVI to use U.S. currency, and passports are not required for U.S. citizens traveling from the mainland U.S. or Puerto Rico.
USVI are comprised of the tropical islands of St. John, St. Thomas, and St. Croix and their islets (home to the Property). St. Croix, the largest of the three USVI, is a rustic island with beautiful beaches and a mountainous coastline. The island is known for its historic sugar plantations, twenty-three premier white-sand beaches, aweinspiring vistas, flourishing rainforests, hiking trails, and surrounding coral reefs.
In terms of tourism, 2022 was a remarkable year for the Caribbean, with significant growth during the post-Covid period. According to an HVS report, the USVI witnessed the highest increase in visitors among all Caribbean destinations from 2019 to 2022. The report, released in September 2022, highlighted a year-over-year increase of 31.6% in visitors to the USVI. The USVI Department of Tourism attributed this success to their agile entry protocols during the pandemic and ongoing efforts to promote visits from both stayover and cruise passengers.
GALLERY
Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage company business in Nevada.
© 2024 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by Berkadia Affordable Tax Credit Solutions. For state licensing details for the above entities, visit www.berkadia.com/licensing.
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Property Name: Carambola Beach Resort, St. Croix US Virgin Islands
City, State, and ZIP: Frederiksted, St. Croix, US Virgin Islands 00840
Year Built / Renovated: 1986 / Ongoing
Property Management: Aimbridge Hospitality (unencumbered)
Site Area: 27.3 acres
Guestrooms: 156 (Six guestrooms currently are used for employee housing)
Buildings: 43
Amenities:
Existing amenities include an outdoor swimming pool, whirlpool/jacuzzi, fitness center, and dive shop
Options to expand the resort’s amenities include converting the Davis Bay Suite into a spa and replacing the former tennis courts with pickleball courts, a basketball court, and children’s playground
Option to add a retail space off of the lobby
Meeting Space:
8,150 SF (interior); 2,100 SF (terrace)
Excluding the 2,700 SF former spa located adjected to the lobby entrance (could be converted to meeting space) and the 800 SF Tamarind Room targeted for conversion to a coffee shop
CHRISTIAN CHARRE
Senior Managing Director
Hotels & Hospitality
312.845.1884
christian.charre@berkadia.com
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Additional Renovations
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Significant Revenue Potential from ADR Increases and Resort Fees
3
Brand Opportunities
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Flexible Management
5
Local Government Incentives
and Support
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U.S. Jurisdiction
7
Opportunity Zone
Designation
8
Additional ROI Projects
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Alternative and Additional Uses
10
Membership Club
11
JENNIFER JIN
Vice President - Production
Hotels & Hospitality
786.646.2587
jennifer.jin@berkadia.com
SCOTT WADLER
Managing Director
786.646.2595
scott.wadler@berkadia.com
MICHAEL BASINSKI
Vice President - Originations
561.609.4018
michael.basinski@berkadia.com
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Matt Raptosh Managing Director 215.328.1318 Matt.Raptosh@berkadia.com
Mortgage Bankers
Growing Market for Tourism
12
PAUL WEIMER
Senior Managing Director
Hotels & Hospitality
917.459.5480
paul.weimer@berkadia.com
LUCA ALBISETTI
Analyst
Hotels & Hospitality
786.310.3693
luca.albisetti@berkadia.com
ETHAN WAGNER
Analyst
814.574.7376
ethan.wagner@berkadia.com