In divesting the asset for $9.8 million, Zahavi was paidsubstantially more than the $6 million his Dreamland Theater ZMGLLC plunked down in March 2005 to secure control of the buildingand the adjacent 18 Easy St. Zahavi and his partners intendedinitially to preserve the Dreamland by adding onto the tinyproperty and incorporating condominium units and a possiblerestaurant. More than two years of discussions and impassionedpleas by island natives and visitors failed to move the projectalong, however, and sources familiar with the negotiations say thedevelopment community finally stepped in to assist the localcampaign.

Intercontinental is reportedly not directly involved in theventure but acted as an intermediary to allow the NantucketDreamland Foundation a structure to acquire the property. Corporaterecords show Frederick W. Ulmer III as a director of thefoundation. Efforts to contact him and other principals were notreturned by deadline, but sources insisted the deal has beencompleted. "It's happening for sure," one source confirmed forGlobeSt.com.