New York developer Izak Senbahar twice lost out in a bid to acquire the luxury beach resort hotel Taiwana in St. Barth, according to details in Michael Gross's new book, "Treasured Island: The Story of St. Barth . . . and Its Barbarians, Billionaires, and Beauties."
Senbahar, known for developing properties such as 56 Leonard Street and the Mark Hotel, along with Goldman Sachs executive Dan Neidich and a third partner, initially agreed to purchase Taiwana in 2005 for approximately $30 million from hotelier Jean-Paul Nemegyei. This deal included a $1.5 million deposit that was structured as a mortgage.
However, the acquisition was complicated by Nemegyei's financial struggles. After a hurricane damaged the property in 1995, Nemegyei had borrowed millions from Frederic Gabert. In 2009, Gabert called in the loan, leading to Taiwana's bankruptcy. French courts subsequently ordered the hotel to be sold, voiding the initial sale to Senbahar and Neidich.
Senbahar and Neidich appeared to secure the property through a foreclosure sale, but they were outbid at the last minute by Swiss financial firm Hill Street Partners. Backed by Douglas Elliman, Hill Street Partners offered a higher price, resolving Nemegyei's debt and effectively taking over the hotel.
Later, Taiwana was sold to a hotel subsidiary of LVMH and integrated into another property. Meanwhile, Senbahar's Alexico Group successfully completed a $345 million refinancing package for the Mark Hotel, led by Deutsche Bank, which has stabilized the property post-pandemic.