Destin developer reaches agreement to buy Sandestin (UPDATE)

SANDESTIN — The rumors have finally become truth.

Nearly a year after negotiations were first reported, Sandestin Golf and Beach Resort owner Intrawest announced Tuesday that Destin developer Tom Becnel and his family have finalized an agreement to buy the resort.

The sale is expected to close in early March. Terms of the agreement were not disclosed.

“It’s hard to beat a local owner who knows the property well, is on the property, already has existing relationships with so many important people in the community,” said John Russell, senior vice president of operations at Sandestin. “That’s a real plus for us. We’re all very, very happy that this deal has been reached at this point.

“To us, it’s just a great day in Sandestin,” Russell said.

The purchase agreement also includes the management contracts for Cottage Rental Agency, a community of beach homes at Seaside, and The Marriott Residence Inn and The Marriott Courtyard, both at Sandestin.  

Read the press release.

The sale will not affect the Hilton Sandestin, which is a separate business from the resort.

Rumors that the sale has been finalized have surfaced off and on for months.

“It’s a very large property. It’s a very complex property, so it took quite a while for the process to work its way through,” Russell said. “When you think about what the purchase involves, it’s four golf courses, it’s three membership entities and a large number contracts, and then all the buildings that we own and operate, the convention centers and Fins restaurant. It was a complicated transaction. It just took a long time.

“That was the kind of thoroughness I wanted to see if we were going to get a new owner,” he added. “For me, it’s reassuring that he’s going to take a methodical approach to the purchase rather than rush in and buy it and say, ‘What did I get?’ ”

The sale of Sandestin comes at a good time for Intrawest, which is based in Vancouver, British Columbia. A foreclosure notice was filed against the company last month after it missed a payment on a $1.4 billion loan. An auction to sell off Intrawest’s assets is scheduled for later this month had caused concern among some of the owners at Sandestin.

“There’s been a lot of anxiety among the owners because we didn’t know if it was actually going to happen,” said David Stowe, president of the Sandestin Owner’s Association. “Most of us don’t know the Becnel family. They’ve been in the area a long time. I think there’s just been a lot of anxiety about the uncertainty of what’s going to happen to the resort. And that’s been the main discussion in the community. I think everybody’s going to feel good now that the deal’s going to go through for sure, and we’ll have a good, stable owner and be able to work on our issues.”

Most of Sandestin’s employees will keep their jobs after Becnel takes over. Russell said some employees who worked in Intrawest’s commercial sales unit will stay with Intrawest.

Russell said he expects most people will not notice a difference in the resort’s day-to-day operations.

“If you look at what (Becnel’s) done here, from One Beach Club Drive to Silver Shells, those are very high-quality developments,” Russell said. “It’s a very successful family. The one thing I do know is he is buying it to hold it. He’s not buying it to cut it into little pieces and sell it off or to flip it in a couple years. This is a long-term investment by the family.”

Intrawest bought Sandestin in July 1998 from Malaysia-based Sime Darby Berhad for $130 million.

TO READ A LETTER SENT TO BURNT PINE CLUB OWNERS, READ BELOW.

TO:     The Burnt Pine Club Owners Good Morning Ladies and Gentlemen,

I'm pleased to announce that Intrawest and The Becnel Family have just confirmed they have entered into a definitive agreement that will enable the purchase of Sandestin Golf and Beach Resort.  Click here to view a copy of the official news release.

What this news means is a continued commitment to our Burnt Pine Club Owners and to all of our Sandestin guests.

Led by local Destin developers Tom and Damon Becnel, the new ownership group has a tremendous passion for the Emerald Coast and Sandestin.

With the assets and infrastructure from Intrawest to build upon, combined with improvements in economic conditions, there is no question that Sandestin is heading towards ever greater success.  With a signed agreement in hand, the purchase will likely close by end of the first quarter.

In the meantime, it is business as usual at The Burnt Pine Club.   From a member's perspective, agreements will be honored.  The new ownership group and our senior management team have committed to making the transition a positive one for all involved. We are excited about the opportunities that new ownership will bring and we are determined to remain committed to service excellence at Sandestin Golf and Beach Resort and The Burnt Pine Club.

I want you to know that we appreciate you being a part of the Sandestin family and this prestigious club.  We will keep you informed of major developments in the weeks to come. We look forward to an exciting and positive future ahead.

Sincerely,
John Russell Senior Vice President

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Becnel made headlines in 2009 after appearing on infamous investor Bernie Madoff's client list.

To read about Becnel's 2009 brush with Madoff, click here.