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Silver Beach Club-Daytona Beach may be retiring their timeshare resort

crowmg

crowmg

TUG Member
Joined
Mar 22, 2011
Messages
38
Reaction score
20
Location
Richmond, VA
Resorts Owned
Grand Palms Resort - The Presidential (SC), The Colony (VA)
We just got a newsletter stating that the timeshare in experiencing financial difficulties and new Florida regulations and are considering "retiring" the resort. This is an older resort and the upkeep and is in constant need of repairs due to hurricanes. They state owners are not paying dues so they have a surplus of resort owned units and no new buyers in sight. They have consulted with TOWB (The MVP Service - owned by the Takacs) to possibly buy the resort. I know nothing about this company so I'm asking for other owners their thoughts and experiences if they have experienced their resort being "retired".
 
We have stayed there twice in the last couple of decades mainly for the location (so we can walk to baseball games at Jackie Robinson Park across the river). It was quite worn and tired looking the first time then the 2nd time we stayed they were excited to show us remodeled units (the wing facing the ocean). It was just a lipstick & mascara makeover and they didnt fix or move the pillar in the middle of the kitchen which made opening the oven door difficult and dangerous. The new units had about a 25" TV in the middle of the huge livingroom wall. We actually laughed out loud when we walked in and saw it. You'd need binoculars to watch baseball or hockey on the TV.

I know they suffered a lot of hurricane damage in recent years and were closed for a long time, and probably still are, since their website still says they will reopen in October of 2024. Too bad!

~Diane
 
It looks to be a similar outfit as Lemonjuice Solutions. I don't know that they actually buy the property but rather work as consultants to repurpose or sell the resort. They may also work with a resort to help rent HOA owned weeks or help sell weeks to new buyers.
 
dioxide45 said:
It looks to be a similar outfit as Lemonjuice Solutions. I don't know that they actually buy the property but rather work as consultants to repurpose or sell the resort. They may also work with a resort to help rent HOA owned weeks or help sell weeks to new buyers.
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The newsletter states that this "repurposing" option would be to terminate the timeshare, sell the building and share net proceeds, if any. TOWB would advance to the resort the needed funds, subject to repayment, which will also cover all costs related to potential repairs and manage the work. Going forward, they would like to have one owner for each unit (52 weeks). They would handle the legal process to consolidate and clean titles to sell the property. We were seriously considering deeding back the property anyway as it's been so poorly maintained over the last 5-6 years and every year seems to bring more expense for repairs for hurricane damage. We live 1000 miles away so we probably won't be traveling to FL for many more years.
 
crowmg said:
The newsletter states that this "repurposing" option would be to terminate the timeshare, sell the building and share net proceeds, if any. TOWB would advance to the resort the needed funds, subject to repayment, which will also cover all costs related to potential repairs and manage the work. Going forward, they would like to have one owner for each unit (52 weeks). They would handle the legal process to consolidate and clean titles to sell the property. We were seriously considering deeding back the property anyway as it's been so poorly maintained over the last 5-6 years and every year seems to bring more expense for repairs for hurricane damage. We live 1000 miles away so we probably won't be traveling to FL for many more years.
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There are 2 options that owners must vote on.
 
The property resale value is worth more with a building on it than just a vacant piece of land. Does this property have any water front views or access to water views liked a lake or an ocean?
 
I believe all of their 1 bedroom and studio units face the ocean. The 2 br units overlook the pool and side street that has beach access for vehicles if they still allow driving on the beach.
 
We rented a week 6 there from rci in 2013 for $400. Those deals are just memories.
We had a 1-bed 5th floor ocean front.
It was the week before the big race and it was fun watching the preliminary races on tv in the evenings and talking about them in the pool area with the fans that go there each year.

2013b1.jpg
 
IMHO, because it has ocean views and beach access the land value should be high. I suggest looking at city real estate land value of this property.
 
Well, the fat lady has sung her last song. We got notification that a meeting and vote occured on October 1 and they had enough members request that The Silver Beach be sold. As an owner, I am glad that they are retiring this timeshare. We had planned to turn this one back to the resort had this not happened when it did. These are the details.

GOOD NEWS
  • The vote passed. Wednesday at 1 PM was the official meeting. The vote to terminate is approved.
WHAT HAPPENS NOW
1. The property will be listed for sale. That should be done next week. Once listed we will send you the link so that you can see the listing.

2. Our goal would be to have multiple offers. The board is authorized to go under contract.

3. Once a contract is signed, we will be in due diligence. Depending on the buyer – the contract will determine how long that due diligence period is.

4. At some point there will be a closing. Once we close, all money will be held in escrow and the wind-down of the timeshare will begin. This will include:

a) Identification of and payment of final expenses (some of which will be in the future).

b) Signed agreements with CPA and Counsel for going forward activities.

c) During this time, we will be contacting owners if any additional forms are needed. For example, for sure we will need a W9 and there could be other forms needed.

d) We will also be doing the ‘math’ once all expenses are paid. THE ‘math’ being how much each owner will be paid.

e) There will be a high-level summary of the expenses and how the proceeds numbers were arrived at.

5. Once all the above is done, distributions will be done to each owner along with the sending of a 1099.

TIME-FRAME.
  1. We expect to be done by January or February. Hopefully sooner.
USAGE OF THE PROPERTY
  1. The property will remain open at least until December 31. We will not take any reservations into 2026.
 
UPDATE FROM THE CONSULTING COMPANY, TOWB THAT I RECEIVED JULY 13th! Cross your fingers that there will be a little left over for the owners.

Good Day to you Silver Beach Club Owners: GREAT NEWS. The project has sold and closed.

We are currently working through the payoff of all outstanding debts. We have already paid back the loans that were carried during the repurpose which totaled $4.633M. We will provide a summary of the financial aspects of this as we get to completion as well as a breakdown of proceeds to owners. LOTS more to come as we work through the final stages.
Watch your email box over the next couple weeks.
 
It would be interesting to find out what it sold for. Zillow says the tax assessed value of the property is $4.9 million but they have no sales figures for it. Hopefully the owners get a nice cheque but I wouldnt count on it.

~Diane
 
moonstone said:
It would be interesting to find out what it sold for. Zillow says the tax assessed value of the property is $4.9 million but they have no sales figures for it. Hopefully the owners get a nice cheque but I wouldnt count on it.

~Diane
Click to expand...
Debts totaled 4.63M. There isnt much left if they got the assessed value!
 
callwill said:
Debts totaled 4.63M. There isnt much left if they got the assessed value!
Click to expand...
Yes, I saw that - hopefully the place sold for more than the assessed value -as often happens here in Ontario (Canada).

~Diane
 
UPDATE:
We heard from the company selling the Silver Beach Club and they state that they have paid all bills and now need every owner to sign off on some documents so they can start sending us $$$. They don't state how much and they didn't divulge the selling price. They did however let us know that the proceeds we receive will be subject to tax via a 1099S withholding. I questioned why because we are weeks owners which mean this is a deeded property and we pay property taxes. Why would we not be able to claim this as a loss on our taxes for 2026. Their answer was to consult a CPA. So...is anyone out there a CPA and can enlighten us as to how to treat this "windfall"!
 
crowmg said:
UPDATE:
We heard from the company selling the Silver Beach Club and they state that they have paid all bills and now need every owner to sign off on some documents so they can start sending us $$$. They don't state how much and they didn't divulge the selling price. They did however let us know that the proceeds we receive will be subject to tax via a 1099S withholding. I questioned why because we are weeks owners which mean this is a deeded property and we pay property taxes. Why would we not be able to claim this as a loss on our taxes for 2026. Their answer was to consult a CPA. So...is anyone out there a CPA and can enlighten us as to how to treat this "windfall"!
Click to expand...
Not a CPA, certain primary resident real estate transactions are exempt from a 1099-S. However, when you sell what would be considered a second home and you are paid out more than $600, they are required to issue a 1099-S. Though they could still send a 1099-S if under $600.

Depending on how much you paid for the timeshare, you may end up with a loss. However, you can't take the loss to offset your tax obligation from other income. But you won't have to necessarily pay taxes on the money received from the sale. If you got the timeshare for free, then you are likely going to have to pay tax. This is the IRS setting the rules, not the company selling the property.
 
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