Trump to purchase Doral Resort

(golfincmagazine.com)
Donald Trump is dishing out a lot of money to buy and renovate the “iconic” Doral Resort in Miami, Florida. But most real estate observers feel he is getting a great bargain.

The New York-based developer, and owner of 11 golf courses, is planning to spend $150 to $200 million in renovating the resort, after his $150 million purchase closes in June. Real-estate listings show that the going-rate for an acre in the center of Miami is more than $2 million.

Doral is an 800-acre property, with a 692-room hotel, meeting space, a spa, four golf courses and a Jim McLean Golf School. The sale does not include the White Course, because it can still be developed.

Trump has been bullish on golf over the past five years, acquiring high-end properties in financial straits, and turning them around. While much larger than previous acquisitions, Doral appears to follow the same formula.

Doral was part of a collection of high-end resorts, that included the Biltmore and La Quinta Resort and Club. It was previously owned by CNL Hotels & Resorts group. But in February 2011, MSR Golf Resort, an entity controlled by hedge fund manager Paulson & Co., seized the group through foreclosure, and immediately placed it in Chapter 11 bankruptcy to avoid paying $1.525 billion in senior debt.

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