NEW YORK—Carey Watermark Investors Incorporated (CWI) announced that it has acquired the Sanderling Resort, a 106-room full-service resort, located in Duck, N.C., on the Outer Banks. The purchase price was $38 million.
The Sanderling Resort is situated on 13 acres of land on the Outer Banks in North Carolina, making it a popular drive-to destination. The resort is within driving distance of major East Coast cities such as Raleigh, Washington, D.C., Philadelphia, and Charlotte.
The property is approved to add an additional 24 guestrooms to the existing site. CWI plans to begin this project in late 2014 and to deliver the 24 additional guestrooms in time for the 2015 peak spring and summer seasons.
The aggregate $48.1 million investment includes a $38 million purchase price as well as $10.1 million of other acquisition-related costs and planned capital expenditures. The acquisition was financed with $22 million of debt.
The resort will continue to be managed by Northview Hotel Group, which has overseen daily operations at the resort since May 2012 along with a transformational renovation in 2012-2013.
“Situated on one of the few remaining natural barrier island chains and proximate to several major markets, including Washington, D.C., the Sanderling Resort is well-positioned to attract guests from the East Coast,” said Michael Medzigian, chief executive officer of CWI. “Our acquisition of the Sanderling Resort provided the opportunity to add a recently renovated and market-leading, oceanfront property that we believe has the potential to create long-term value for CWI’s portfolio.”
