Timeshare resort goes on the auction block for second time
The beleaguered Apple Valley Resort, Howard, OH, ceased operations on May 27, 2016, after 30-years of operation. All attempts to keep the doors open failed because the Home Owners Association was unable to generate sufficient maintenance fees or rental income.
An auction for the property held on September 14, 2018, failed because a required minimum bid of two-thirds of the appraised value of $1.67 million was not reached. The new minimum bid is now set at $1.2 million. The next sale is schedule for Friday, October 12, 2018, at the resort’s clubhouse.
According to TimeSharing Today’s publisher, Shep Altshuler, “The timeshare industry has seen a growing number of older legacy resorts face challenges because of increasing defaults by dues paying owners, the inability to convert HOA owned-units to inventory that generates revenues, and the decline in values in the resale marketplace. These challenges are forcing some resorts to evaluate their sustainability to continue as a timeshare.”
At conferences of the Timeshare Board Members Association (TBMA), the topic of resort viability has become of timely relevance. A TBMA sponsor and frequent speaker, Alex Krakovsky, Managing Member, Lemonjuice Capital, a company that specializes in helping timeshare resorts repurpose to a higher and best use, said, “Too often, the process of winding down a timeshare property results in the deeded owners not getting their fair share of the underlying value of the real estate after the sale. It is important to understand that the lengthy and complicated process should include due diligence and full disclosure to protect the owners’ interests.”
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