yachtsman resort myrtle beach bankruptcies

California real estate firm acquires Myrtle Beach hotel for 'higher-end' housing

by Brianna Allison

MYRTLE BEACH, S.C. (WPDE) — A Beverly Hills-based real estate firm has purchased the Yachtsman in Myrtle Beach.

The management partner of Hybridge Capital Max Mellman confirmed the sale to ABC15 on Thursday.

READ MORE: Potential land purchase could expand Lewis Ocean Bay Heritage Preserve by 350 acres

A release from Hybridge detailed that the “deal was secured out of bankruptcy through an off-market transaction.”

Mellman added that the company is looking to develop the 159 beachfront condominiums into 'higher-end' long-term housing.

"We're excited about the project and to add some additional housing to Myrtle Beach,” he said.

According to online records, the mortgage for the property is nearly $12 million.

March 7, 2024

Lemonjuice Solutions Announces the Sale of The Yachtsman Resort

Lemonjuice solutions has completed the sale of the yachtsman resort to hybridge capital for $12.75 million..

ORLANDO, FL, US, March 5, 2024 / EINPresswire.com / —  Lemonjuice Solutions  has completed the sale of The Yachtsman Resort to Hybridge Capital for $12.75 million.

This oceanfront property, comprised of two towers and 160 units, was sold for $12.75 million, with the transaction finalized on January 31, 2024. Timeshare owners are set to receive an average of $2,643 per timeshare interest, contingent upon account balance and unit size.

Facilitating Positive Outcomes for Owners Located in Myrtle Beach, South Carolina, The Yachtsman Resort faced significant financial challenges, compounded by a diminishing owner base and severe structural issues.  Lemonjuice  stepped in back in 2018, providing financial support to keep the resort operational while undertaking necessary repositioning efforts.

This intervention not only sustained business operations but also ensured owners and guests continued to enjoy the resort's amenities during the evaluation and restructuring process. Lemonjuice also oversaw the structural repair project, resulting in savings of over $4 million for the owners, and addressed legal issues stemming from expired developer rights.

Regular communication channels, including mailings, phone outreach, and town hall meetings, were utilized to keep owners informed about progress and educated on their available options. The Lemonjuice team, led by CEO Alex Krakovsky and senior leadership, collaborated closely with the Board of Directors to devise tailored strategies addressing the unique challenges faced by The Yachtsman. Continuous engagement with owners and addressing their inquiries and concerns remained a priority throughout the process.

Alex Krakovsky, CEO of Lemonjuice Solutions, emphasized that The Yachtsman faced unique challenges and required close collaboration among all the stakeholders — This included keeping The Yachtsman operational until the sale's completion and ensuring transparency by conducting the sale under federal court supervision, given the property's size and complex legal, financial and title issues.

"The Yachtsman faced unique challenges and required close collaboration among all the stakeholders."

Overcoming Significant Challenges

Bobby G. Mitchell, Association President, sought Lemonjuice's assistance after identifying critical mismanagement issues that had pushed the resort to the brink of insolvency. Lemonjuice's intervention included the acquisition of several hundred intervals in 2018, followed by collaborative efforts with the Association to restore solvency through improved management practices, rental strategies, and maintenance fee collections.

A thorough evaluation of existing contracts revealed substantial overpricing in structural repair and other service agreements. With approval from the Board, Lemonjuice terminated these contracts and engaged more cost-effective and reputable service providers, resulting in significant savings for the association.

Mitchell acknowledged Lemonjuice's invaluable contributions, highlighting their expertise and professionalism, which played a pivotal role in averting bankruptcy and ensuring compliance with building codes during repairs.

Addressing Unexpected Obstacles Lemonjuice navigated various unforeseen challenges, including failed financial audits, legal claims, and legislative changes impacting timeshare laws in South Carolina. Through strategic interventions, including obtaining title insurance, Lemonjuice successfully concluded the sale of the property in February.

Continued Commitment to Owners Mitchell commended Lemonjuice for its transparency and expertise, expressing confidence in recommending their services based on their track record of professionalism and results-driven approach. Lemonjuice's successful track record includes the reimagination and sale of 12 former timeshare properties since 2016, returning over $70 million to timeshare owners. The company anticipates completing an additional 8 properties in 2024 under its Resorts Reimagined™ program.

About Lemonjuice: Lemonjuice Solutions specializes in strategic planning, investment capital, and professional management for timeshare and mixed-use properties. Distinguished by its solutions-oriented approach, Lemonjuice aligns its interests with stakeholders by investing its own capital and resources. The Resorts Reimagined™ program exemplifies Lemonjuice's commitment to revitalizing legacy timeshare resorts and creating value for owners.

For inquiries about Resorts Reimagined™ and Lemonjuice Solutions services, please contact Jan Barrow at 863-602-8804 or via email at [email protected].

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Hybridge Capital Acquires Yachtsman Resort in Myrtle Beach Out of Bankruptcy

MYRTLE BEACH, S.C. — Hybridge Capital Management has purchased The Yachtsman Resort, a 159-room hotel located at 1304 N. Ocean Blvd. in Myrtle Beach. The Los Angeles-based investor acquired the hotel, which was built in 1982, out of bankruptcy in an off-market transaction.

Bhavesh Patel of Hodges Ward Elliott represented the seller, Maryland-based Lemonjuice Solutions, in the transaction. The sales price was not disclosed. Max Mellman and Drew Rands of Max Benjamin Partners Inc., along with Justin Ghaderi of CBRE, secured an undisclosed amount of acquisition financing for the deal.

Hybridge Capital, which now owns 569 hotel/resort rooms in Myrtle Beach, plans to implement a capital improvement program to restore The Yachtsman. Details about the renovation were not disclosed.

Partnership Tops Out 509-Unit Residences at The Wynwood Plaza in Miami

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Sale of ex-SC timeshares upended as top bidder says never mind

The Yachtsman Resort on Ocean Boulevard in Myrtle Beach hit the virtual auction block last month after it was ordered sold as part of a bankruptcy case.

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Case number: 2:22-bk-03258 - SC Beach Partnership, LLC - South Carolina Bankruptcy Court

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• August 28, 2019
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Failed Timeshare Development in South Carolina Goes Bankrupt

An Ocean Boulevard property down in Myrtle Beach, South Carolina recently gave up on their quest to build a popular destination in the U.S. Southeast. Sand Castle Timeshare Owners Association Inc is now filing for bankruptcy in order to deal with their unobtainable dream. The failed timeshare operation got started back in 2007 by putting 2,028 weekly intervals on the market. But the operation quickly realized the demand for their resort just wasn’t there. Over the last decade, only 35% of their units have been occupied. 

Leading up to court proceedings, the exact reasoning behind the noteworthy timeshare downfall has been vague at best. It’s been deemed one of the oddest bankruptcy claims to hit the South Carolina docket in a while. Local attorney from Nexsen Pruet, Rick Mendoza, told local news outlets that the filing was unique to anything the state has ever seen. He currently represents the failed timeshare owner’s association with law partner Ron Jones. He said, “This is the first time I’ve been involved in something in this particular situation.” 

Apparently, hundreds of timeshare owners initially invested in what was once called Sand Castle South, only to simply lose interest. Although the property management company purchased two full floors at the popular Sandcastle Oceanfront Resort in one of the most popular tourist cities in America, they weren’t able to keep buyers engaged. In the end, investors-turned-fractional-owners quietly stopped paying the obligations that kept the resort alive. Maintenance fees and other costs were abandoned, along with essentially all the 39 vacation units across both floors.

Secondary Investor Plays Role in Failed Timeshare

What makes the bankruptcy claim interesting is the fact that Sand Castle South received financial help from Festiva Adventure Club back in 2013. Herbert H. Patrick claims his company took a chance on the Myrtle Beach resort by purchasing its unsold inventory – even though it was on the verge of becoming a failed timeshare. While Patrick acknowledged the deal was not “financially well” from the get-go, he told reporters he believed his experience in the industry would stabilize the operation.

You see, Patrick’s Festiva Adventure Club is a derivative of another one of his companies called Zealandia Holdings . This venture is a stakeholder in a number of timeshare investment projects. Oddly enough, Patrick is also the president of the Bankrupt Owners Association. During July 9th’s meeting of creditors, he remembered being overly optimistic even though “the association (he invested in) was on the verge of bankruptcy.” After funneling over $1 million into the revival of Sand Castle South , he thought it would only be a matter of time before he’d reverse the resort’s previous fortunes . 

But unlike Patrick’s other investment ideas, he quickly found out “there just wasn’t any usage for those weeks.” After paying nearly $1000 for every interval , Festiva Adventure Club was unable to cultivate any public interest and eventually walked away , officially classifying Sand Castle South as a failed timeshare investment. After five years on lifeline, the resort lost its financial heartbeat and Patrick moved on to pursue other financial obligations with alternative investors .

Did Sand Castle Ever Stand a Chance?

Since the summer of 2019 began, all of Sand Castle’s condos have basically been vacant. While some owners are still considered in “good standing,” there aren’t a lot of perks to owning a piece of this failed timeshare operation. The property management company has never been able to figure out how to sell their units or how to hold their buyers accountable for payment. It’s hard not to assume something fishy is going on down in the Southeast. It wouldn’t be surprising considering a multitude of scams swallow up consumers in this popular tourist region .

Either way, the five hundred – or so – fractional owners at Sand Castle South will be receiving a lovely notice of foreclosure soon. The good news is, after creditors are paid in full, leftover proceeds could be paid to the timeshare owners who remained current. According to Rick Mendoza, the property management company hopes to sell the remaining 39 units at a court auction. Jones claims they are currently “looking for a buyer.” Hopefully a successful tenant at the Sandcastle Oceanfront Resort can take over and turn things around.

Failed Timeshare Ownership Isn’t Always the Buyer’s Fault.

The outcome of this story goes to show how unpredictable buying a timeshare can be. Hundreds of failed timeshare operations impact the pockets of consumers every year. While it may be difficult to see something like this coming , there are certain things you can look for to avoid let down. Before you agree to buy into something that seems promising, make sure you’re sure it’s best for you.

If you find yourself in a timeshare contract that just doesn’t make sense, there’s no reason to give up hope. Being proactive and exhausting all of your options with the resort will inevitably help you legally walk away from your agreement, free and clear of all obligations . Preventative measures will help you avoid foreclosure and the thought of facing bankruptcy yourself . To learn more, you can schedule a free consultation with us or proceed with an eligibility form below.

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Banyan Cay in West Palm Beach is now Dutchman's Pipe, a prolific vine with a stinky flower

Welcome to  The Dirt ! I’m real estate reporter  Kimberly Miller  with the latest developments in the sizzling market. 

Every time the development Tuttle Royale in Royal Palm Beach comes up, tell me you don't think about a Royale with cheese from the 1994 Quentin Tarantino movie "Pulp Fiction?" It's what the French allegedly call a McDonald's quarter pounder with cheese because they use the metric system and...well, that's another newsletter .

Anyway, developer Brian Tuttle's dream of a consolidated downtown in the western burbs is moving right along with half of the housing at the 200-acre project completed and amenities to follow as the final financing comes together. Do contrived downtowns really work? We'll see.

In other development news, or non-news, remember the Corner Store in West Palm Beach ? For those who don't, it was a quirky bait and tackle shop at the foot of the Southern Boulevard bridge whose employees had nicknames like Buttercup, Skillet and Chin. It was a place stocked with high-end wine and single-can beers. A classic Old Florida shop teeming with character.

It's been closed since late 2021 but there may changes ahead.

Also, there's a big update on the former Banyan Cay Resort & Golf Club , a lawsuit involving county commissioners and new apartments in Palm Beach Gardens.

Was Banyan Cay Resort rebranded with name of invasive flower that smells like rotting meat?

The former Banyan Cay Resort & Golf in West Palm Beach is being recast into an ultra-exclusive golf club after its rocky bankruptcy and purchase in January by new property owners. Its name has been changed to Dutchman's Pipe Golf Club. Dutchman's Pipe is the name of a prolific climbing vine, whose 3-inch flowers attract pollinators but also "produce an odor similar to that of rotting meat," according to the University of Florida.

Alrighty then. Moving right along. New owners tout the development's proximity to Palm Beach and the evolving communities near downtown West Palm Beach that have had an infusion of wealth since the pandemic. Initiation fees for Dutchman's Pipe will range from $300,000 to $350,000.

Retail revival rages around iconic but moldering Corner Store in West Palm Beach

A limited liability corporation bought the old Corner Store in November 2021 for $2 million and it's been radio silence ever since. The beloved, if bedraggled , one-stop-shop abruptly closed after the purchase. There have been rumors that a private club may be in the works for the 53-year-old building, or a restaurant. But even the president of the popular SoSo community says he's in the dark.

Retail shops around the unusual circle-shaped building have upped their appeal, including the historic First Federal Savings and Loan , which was transformed into a 7-Eleven.

Lawsuit says two county commissioners pressured builder to make contributions

We've come a long way from a time when Palm Beach County had the unflattering nickname "Corruption County" because of a string political shenanigans that led to resignations and jail sentences. This does not appear to be a return to that. But a lawsuit by Greenacres builder claims County Commissioner Mack Bernard and former Commissioner Dave Kerner acted inappropriately during a bid to oversee construction of new fire stations.

The county attorney's office is "vigorously defending the allegations contained in the lawsuit." 

Roundabout proposed to calm traffic at Palm Beach Gardens intersection

There's concern that a new 221-unit apartment complex at the corner of Central Boulevard and Victoria Falls Boulevard in Palm Beach Gardens will worsen gridlock and traffic accidents in the area. To remedy the traffic concerns, the project will replace a stop sign with a roundabout for "traffic calming."

Have you seen Floridians try to use a roundabout? It's like the scene from "European Vacation" where Clark circles around for hours not being able to get left . "Look kids! There's Big Ben, and there's Parliament. Again."

Live lightly.

Kimberly Miller is a veteran journalist for The Palm Beach Post, part of the USA Today Network of Florida. She covers real estate and how growth affects South Florida's environment. Subscribe to The Dirt for a weekly real estate roundup. If you have news tips, please send them to [email protected].   Help support our local journalism, subscribe today.