The newly purchased Treasure Island Ocean Club will become a boutique hotel.
Trez Capital, a private real estate lender with an office in Palm Beach, announced it has funded a $29.2 million construction loan for the new beachfront condominium project in Treasure Island.
The Treasure Island Ocean Club at 11500 Gulf Blvd. sold in a $12 million deal to Treasure Island Investment Holdings LP, which is connected to Lumar Holdings.
The developer purchased the 22,328-square-foot hotel from Clearwater-based TJM Properties.
The 55-unit, two-story resort on 1.26 acres was built in 1950 and is next to the Arvilla Resort. It was completely renovated in 2014.
The plan is to redevelop the hotel into a six-story boutique condo building, Ocean Club, that will open in the fourth quarter of 2022.
The building will feature two-bedroom/two-bathroom residences with nearly 1,000 square-feet of living space. The units offer high-end finishes and large balconies with premium views of the beach and Gulf of Mexico.
The 63 units range in price from $700,000s to the $900,000s. The building is nearly 50% sold, according to Trez Capital.
The amenities include a swimming pool, a spa, a state-of-the-art fitness center, private elevators and beach access.
The building will also have a lounge and a rooftop terrace.
This is the third condominium construction loan Trez Capital has made to the same developer over the past two years for waterfront condominium projects in Pinellas County.
Those projects included a $21.5 million loan for Azure near Clearwater Beach, a $16 million loan for the 34-unit Avalon Beach Club in Clearwater.
The group also funded $15.61 million in construction financing for a new development called The Harbor at Town Center, constructed by a different developer in Madeira Beach.