Myrtle Beach, South Carolina The drama never left the dance floor at Myrtle Beach’s Ten Roof.
For more than two years, the building that houses the popular entertainment venue, one of the only live music venues in the ocean, has been involved in a grueling lawsuit. The current owner, Chalpin Realty SC LLC, accused a group of defendants two years ago of overvaluing the property, 1410 N. Ocean Blvd. He sold it for $20 million when the actual value was much lower.
The property, which is still under litigation, is now up for auction.
Initial Bid: $5.8 million – 29% of the cost of its last sale.
The building will not be sold at a traditional auction once it reaches the highest bidder. Earnest said there is a target sale amount and once the auction reaches that point, the property is likely to sell. He could not determine this value, citing secrecy reasons.
“It’s definitely not a case of (higher) bidding,” said Ryan Earnest, real estate agent for the building through Keystone Commercial Realty. “The owner has the price at which he wants to sell it, but that kind of business is born, is what he does.”
Earnest explained that the building is not in any kind of distress, like foreclosures. The auction is simply to attract more interest in the property. The building has been for sale on traditional real estate marketing platforms for several months but has not attracted a buyer.
The two sides will enter into alternative talks to resolve disputes next month. Basically, they will have to settle their differences outside of the courtroom, although the judge can later be withdrawn to make other rulings if the parties do not agree.
So far, the two sides have been trading blows with dozens of court cases over the past two years.
In the lawsuit, Chalbin said the problems began immediately after the purchase was completed. Tenants were missing out on rent payments and requesting extensions — even before the COVID-19 pandemic began, and there were maintenance issues, such as leaky ceilings and plumbing problems, according to the lawsuit.
For their part, the defendants described the allegations of fraud in the sale of the building as “fantasy”.
“Going back and making these shocking allegations is really ironic,” Myrtle Beach attorney Henrietta Golding, who is representing one of the defendants, previously told The Sun News.
Earnest said the sale of the building would not affect any of the existing tenants.
“The leases are in effect. You can’t deactivate the lease. These are all long-term leases and long-term tenants. “It’s an investment sale where you basically buy the property with the tenants who are on the premises.”
In general, Earnest said, the drug is successful. It is not uncommon for tenants to have to move out. For example, Tin Roof and Banditos have been there for years.
In fact, the building will soon have a new tenant, Legends Sports Pub, which will be a hub for Ohio sports fans, Earnest said. The pub will open later this fall.
“I think that would be a good addition there,” he said.
The auction of the property will begin on October 31.