From 2020, an article about the fate of the Delray South Shore Club--a timeshare that got pushed out

[wackymother]

TUG Brian has been asking for updates on older resorts, which prompted me to hunt down this article from a couple of years ago.

Delray Beach: Timeshare owners fight sale of complex

Four owners are fighting the sale of the Delray South Shore Club, a timeshare that closed in January. Jerry Lower/The Coastal Star By Steve Plunkett The cozy 15-unit timeshare closed its doors the Saturday after New Year’s, employees were terminated, and security guards started patrolling the...

thecoastalstar.com

 

[wackymother]

A bit more info about the closing from the resort's website.

Contact Support

 

[timeshare trader]

How did the final distribution start at $16,000 per interval in the May 2020 communication and the October 2020 communication states the owners will recieve $110-$130 per interval.

 

[BingoBangoBongo]

The owners got two payments. The first one was for $16,000+ and the second was just over $100.

 

[travelhacker]

I often wonder why more of the hard on their luck timeshares in very desirable locations don't get more unsolicited bids from developers. For example, my parents own a real dump of a timeshare right on Main Street in Park City, and a couple of blocks from the town lift. I think if you offered every owner 10-15K at a lot of resorts, you'd get the majority or super majority that you would need and in many cases those offers would be well below market value.

I've often thought of how one would be able to get an idea like that off the ground.

 

[wackymother]

I often wonder why more of the hard on their luck timeshares in very desirable locations don't get more unsolicited bids from developers. For example, my parents own a real dump of a timeshare right on Main Street in Park City, and a couple of blocks from the town lift. I think if you offered every owner 10-15K at a lot of resorts, you'd get the majority or super majority that you would need and in many cases those offers would be well below market value.

I've often thought of how one would be able to get an idea like that off the ground.

I have, too. These guys seem to be giving a roadmap of how to do it--choose a smallish resort with an incredible location. Buy up all available resales as quickly as possible, so that you own a majority of voting shares. Put out feelers to developers till you find one that takes the bait. Make offer to other owners, saying that expensive repairs are looming and here's a quick way out where they would get a decent amount of money back. Done.

 

[travelhacker]

I have, too. These guys seem to be giving a roadmap of how to do it--choose a smallish resort with an incredible location. Buy up all available resales as quickly as possible, so that you own a majority of voting shares. Put out feelers to developers till you find one that takes the bait. Make offer to other owners, saying that expensive repairs are looming and here's a quick way out where they would get a decent amount of money back. Done.

Yep. Honestly, I'm a little surprised that people sued in this scenario. $16,000 seems very, very generous.

 

[dioxide45]

Yep. Honestly, I'm a little surprised that people sued in this scenario. $16,000 seems very, very generous.

While generous, I guess it depends on a lot of factors. What were the total proceeds? Did anyone (board members, other owners) with inside knowledge it was going to happen buy up weeks resale to take advantage of multiple payouts?

 

[wackymother]

Did anyone (board members, other owners) with inside knowledge it was going to happen buy up weeks resale to take advantage of multiple payouts?

Yes, it sounds like the guys who orchestrated the whole thing bought up a lot of weeks in advance, both to get majority voting rights plus multiple payouts.