A joint venture between Sculptor Diversified Real Estate Income Trust and Trinity Investments has acquired the 809-key JW Marriott Marco Island Beach Resort on Florida's Gulf Coast for $835 million.
The joint venture procured a $690 million five-year, floating‑rate commercial mortgage loan through Wells Fargo and JPMorgan Chase & Co., which is securitized in a stand-alone CMBS offering for this acquisition.
MassMutual, through its global asset manager Barings, had owned the property for over 40 years. The property underwent a $320 million renovation in 2018, which included the addition of the 94-room Paradise by Sirene, an adults-only part of the resort. The hotel was rebranded with the JW Marriott luxury flag following the renovation.
The property consists of 26.7 acres with a quarter mile of resort-controlled beachfront along 3 miles of private beaches, according to a news release from JLL’s Hotels & Hospitality Group, which represented the seller in the transaction. JLL also assisted the borrowers in securing the loan.
The resort has 140,000 square feet of event and meeting space, 12 restaurants, two 18-hole golf courses across more than 400 acres, a 24,000-square-foot spa, five outdoor swimming pools, four tennis courts, fitness and business centers, and an entertainment venue.
"The successful execution of this transaction across both equity and debt underscores the depth of JLL's capital markets platform and our relationships with buyers and lenders focused on high-quality hotel assets," JLL's Hotels and Hospitality Americas CEO Kevin Davis said in the release. "Luxury beachfront resorts of this caliber remain among the most sought-after assets in the hospitality sector, particularly properties like the JW Marriott Marco Island that combine scale, irreplaceable coastal positioning, championship golf amenities and recurring membership income — attributes that generate stable cash flows and provide insulation against market volatility while offering meaningful upside potential."