It's official: Iconic Naples Beach Hotel property changes hands, redevelopment to begin

The iconic Naples Beach Hotel property has sold, paving the way for a multimillion-dollar redevelopment project. 

The closing happened late Thursday, despite a legal challenge.

The Athens Group and MSD Partners LP, who have united to redevelop the 125-acre property, confirmed their purchase in a statement.

Kim Richards, president and CEO of The Athens Group, described the acquisition as historic and "an important next step in achieving our vision forward for this very special place after years of work and planning."

He didn't address the legal challenge, which held up the sale for months, and has yet to be resolved.

In case you missed it:Longtime owners switch gears in legal fight over the future of the Naples Beach Hotel

More like this:In the Know: Buckeyes hotel developer tied to $27M Neptune Inn purchase on Fort Myers Beach

Redevelopment plans include up to 185 luxury residences and a 216-room Four Seasons Resort, off Gulf Shore Boulevard, steps away from the Gulf of Mexico.

"Our team is excited to develop this world-class project for the community, our guests and our residents," Richards said.

MSD Partners, an investment advisory firm tied to Michael Dell, founder and CEO of Dell Technologies, provided the financing and will play an active role in the redevelopment project as it moves forward.

The price paid for the property wasn't disclosed.

Previously:Sale of Naples Beach Hotel property held up by legal challenge

Athens and MSD also confirmed they've signed a long-term agreement with Four Seasons Hotels and Resorts, an international luxury operator, to manage their development, known as Naples Beach Club.

“We are excited to partner with The Athens Group on the development of this extraordinary property, and we are thrilled to be collaborating with Four Seasons once again,” said Barry Sholem, a partner in and chairman of real estate for MSD Partners.

MSD Partners already owns Four Seasons Resort Maui at Wailea and Four Seasons Resort Hualalai in Hawaii. Its other properties include the Fairmont Miramar in Santa Monica, California, and The Boca Raton resort on Florida's east coast.

"We look forward to bringing our vision for this iconic new resort community to one of South Florida’s most treasured beaches," Sholem said of the Naples redevelopment project.

Together, MSD Capital and MSD Partners manage more than $22 billion of assets, with real estate investments of nearly $8 billion.

MSD Partners recently purchased the Hamilton Harbor Yacht Club in Naples.

The purchase price of the club wasn't disclosed by the buyers or sellers. A recorded deed, however, shows it sold for $16.625 million.

More:Developer chooses a five-star resort to operate the Naples Beach Club Hotel

The Naples Beach Club project will mark Four Seasons' debut on Florida’s Gulf Coast.

“We are proud to be a partner in this exceptional project, bringing the vision of MSD and Athens to life by setting a new standard of luxury in Naples and delivering our brand’s personalized service and quality excellence to this beloved beachfront community," said John Davison, Four Seasons' president and CEO, in a statement.

Naples Beach Hotel & Golf Club a local presence for 75 years

The sellers, the Watkins family, owned and operated the Naples Beach Hotel & Golf Club on the property for 75 years, through three generations.

After a search for a buyer, the family announced in March 2018 that they'd chosen The Athens Group for a strategic partnership because it proposed a redevelopment plan they felt would protect their legacy, while ensuring their prized property remained a crown jewel in Naples.

Naples City Council approved the $250 million plan to redevelop the hotel property in 2019. 

In a statement, former owner Michael Watkins said his family looks forward to the future development "continuing our 75-year tradition of hospitality in the Naples community."

The Naples Beach Hotel — opened in 1946 — closed its doors on May 23, with the long-anticipated sale expected to happen within a week.

Then came the last-minute legal challenge from a nearby resident, Gregory Myers, which led the buyers to delay the closing, out of caution.

Myers, who lives on Gulf Shore Boulevard, filed a suit on May 27 in Collier Circuit Court, alleging his private property rights have been violated. Based on publicly recorded plats and easements, he asserts he has an interest in the land and should have more power to determine what becomes of it.

Myers filed a lis pendens along with his lawsuit.

The lis pendens — a formal notice of the lawsuit — muddied the title, further complicating the sale.

Previously:Naples resident holding up sale of Naples Beach Hotel is no stranger to legal battles

Myers, who represents himself in the lawsuit, has declined media interviews about his case. However, he aired his concerns about the redevelopment project at city meetings, including changes to the championship golf course and his view of the Gulf of Mexico. He seeks a jury trial. 

The property's buyers and sellers continue to fight the legal action, arguing it has no merit — so there's no need for a jury trial.