Print
Real Estate - Commercial

CB Timeshare Condos Fetch $8.3M Bid In Bankruptcy Auction

By Johanna F. Still, posted Apr 8, 2022
The 42-unit North Pier Ocean Villas, a two-building timeshare condominium in Carolina Beach, has tenatively sold for $8.3 million in an auction as part of the HOA’s Chapter 11 bankruptcy proceedings. (Photo by Johanna F. Still)

The North Pier Ocean Villas timeshare condominium in Carolina Beach is under a nearly ironclad contract to be sold for $8.3 million as part of a bankruptcy proceeding, pending final court approval. 

Eight pre-qualified bidders arrived at the U.S. Bankruptcy Court in Raleigh Thursday morning and engaged in a lively contest. 

“We had a spirited auction, to put it mildly,” David Haidt, the North Pier Ocean Villas homeowners association’s attorney, told U.S. Bankruptcy Judge David Warren in a hearing immediately following the auction.

“It's crazy how you put weeks and weeks into this … then everything culminates in an auction that takes 15 minutes,” said Rob Tramantano of Chapel Hill-based Great Neck Realty Co., who specializes in bankruptcy sales. In all, Tramantano courted 100 prospective buyers leading up to Thursday. 

Cekra Inc., a Wilmington-based industrial contractor, was the highest bidder, offering to purchase the distressed property for $8.3 million, according to Haidt. A backup bidder, Robert Buchanan, is next in line with an $8.25 million offer. Cekra representatives did not immediately respond to a request to comment. The company has expertise in "uniquely challenging projects," according to its website, and has performed work on bridges across the country. 

The 42-unit North Pier Ocean Villas property wound up on the auction floor after its HOA filed for Chapter 11 bankruptcy in August 2021. Representing owners who shared the units among 2,184 weekly timeshares, the HOA lacked the cash necessary to bring one of the property’s two buildings up to code. The building with frontage on Canal Drive is occupied and in much better shape than the one fronting Salt Marsh Lane, which may be considered a tear-down depending on the rehabilitation costs, given local code requirements. 

This structurally damaged and unoccupied building would otherwise qualify for condemnation, but the town’s building inspector put the proceedings on pause in order for the HOA to work its financial affairs out through bankruptcy. With damage accelerated by Hurricane Dorian in 2019, the HOA was already in a financially murky position, after decades of timeshare owners handing their deeds back to the HOA to stop paying annual dues, condo officials previously told the court. 

Developed in the ‘80s, the property has oceanfront views on Carolina Beach’s north end, just before the Freeman Park entrance. 

Representing the HOA, Tramantano said the auction price exceeded everyone’s expectations. In February, he guessed the property could sell for as much as $7 million. 

“I think it's it's a function of the market,” Tramantano said. “There's limited opportunities out there and obviously these bidders saw great opportunity in this property. So it couldn't work better from our perspective.”

At the minimum bid price of $3.95 million, each of the condo’s 2,184 timeshares stood to gain a roughly $1,800 payout. Should the high bid stick, they could each receive roughly $3,800 checks. The HOA owns roughly half of all of the shares, due to the deed-backs, and will pay off its debts using those proceeds, per the court-approved sale proceedings. 

“We have a very firm contract with absolutely no outs, or no conditions by which the buyer can terminate the contract,” Tramantano said. 

Closing will occur within 10 days of the court approving the final sale order, which has yet to be turned over to the judge. Tramantano expects to close during the first week of May.

Ico insights

INSIGHTS

SPONSORS' CONTENT
Untitleddesign7

Getting Your Community Ready for Spring and Summer

Dave Orr - Community Association Management Services
Dave sweyer 300 x 300

Insights into the 2023 Leasing Market in Wilmington, NC: What You Need to Know

Dave Sweyer - Sweyer Property Management
Jessiepowellheadshot webversion

5 Reasons to Build Custom Franchise Software

Jessie Powell - Wide Open Tech

Trending News

Conservation Group Signs $8M Deal To Buy The Point On Topsail Island

Audrey Elsberry - Mar 26, 2024

Rezoning Could Bring 123 Townhomes To Growing Leland Corridor

Emma Dill - Mar 25, 2024

N.C. Ports Officials React To Baltimore Bridge Collapse

Audrey Elsberry - Mar 26, 2024

Engineering Firm Hires Four Employees

Staff Reports - Mar 26, 2024

National Organization Bestows Top Award On Cape Fear Professional Women In Building

Staff Reports - Mar 26, 2024

In The Current Issue

Q&A: Andrews Reflects On Leadership

Pender County Manager David Andrews is slated to retire this summer after 33 years in local government....


Hacking Cyberdefense Shortage

A shortage of cybersecurity professionals influenced professor Ulku Clark and her team to slowly evolve UNCW’s offerings to now include eigh...


INFO JUNKIE: Jack Fleming

Jack Fleming, owner of Socialry Marketing & Scourz and emcee for 1 Million Cups Wilmington, shares his media and tech picks....

Book On Business

The 2024 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2023 Power Breakfast: Major Developments