Foreclosure auction called off as York Beach Surf Club refinances, plans 'soft opening'

Camille Fine, Portsmouth Herald
·3 min read

YORK, Maine – Plans to sell the York Beach Surf Club in a foreclosure auction have officially been called off.

The auction, originally scheduled for Oct. 14 then rescheduled for Nov. 12, was canceled after the York Beach Surf Club completed a refinancing transaction last week, according to manager Taylor Perkins.

“As I said in my previous statement, the situation would (and has) resolved itself in due time," Perkins said in a statement Monday, Nov. 15.

“York Beach Surf Club wasn’t the only business that faced shortfalls, overages and pandemic-associated delays, but we course-corrected and can now again focus on bringing our resort online," Perkins added.

The York Beach Surf Club entered foreclosure after its owner defaulted on more than $6 million in loans. A plan to auction off the property in fall 2021 was scrapped after the owner struck a refinancing deal.
The York Beach Surf Club entered foreclosure after its owner defaulted on more than $6 million in loans. A plan to auction off the property in fall 2021 was scrapped after the owner struck a refinancing deal.

The auction had been scheduled after York Beach Surf Club LLC defaulted on three outstanding loans to Kennebunk Savings Bank totaling nearly $6.2 million and the hotel went into receivership, according to court documents that describe the sale as part of a foreclosure.

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In addition to defaulting on the outstanding loans, the company has faced complaints from contractors, employees and would-be customers who said it was slow to pay them money they were owed, as The York Weekly reported in September.

The financial challenges came as Perkins carried out major renovation and rebranding projects last year for the 54-unit boutique hotel complex at 780 York Street. Those renovations were completed in November, he said.

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"With the refinancing behind us, York Beach Surf Club will continue with its original vision for this amazing site, with a soft opening in December 2021 and a grand opening slated for spring 2022," Perkins said.

"We remain excited about what we’ve created, and we’re beyond grateful for those local vendors that have supported us along the way," he added. "Without them, none of this would’ve been possible."

The York Beach Surf Club entered foreclosure after its owner defaulted on more than $6 million in loans. A plan to auction off the property in fall 2021 was scrapped after the owner struck a refinancing deal.
The York Beach Surf Club entered foreclosure after its owner defaulted on more than $6 million in loans. A plan to auction off the property in fall 2021 was scrapped after the owner struck a refinancing deal.

At one point, the hotel was slated to open July 4 and began booking reservations, but the opening was delayed. Customers who had their reservations canceled complained about waiting weeks for the hotel to refund their deposits.

The hotel's website then said York Beach Surf Club would open in fall 2021. Perkins said an official opening date in spring 2022 will be announced soon.

Key player in receivership sticking around

The property went into receivership on May 7, meaning a receiver, BCM Advisory Group, took over the renovation project and all the assets, according to court records.

Perkins said BCM Advisory Group will stay on as interim chief financial officer and asset manager for the project.

“We are grateful for Jason Mills and his team at BCM Advisory Group, who helped get us to the finish line," Perkins said. "They are a pleasure to work with and remain a great resource moving forward.”

Mills did not respond to a request for comment.

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An attorney for Kennebunk Savings Bank, Christopher Brooks of Drummond Woodsum, declined to comment on behalf of the bank on Friday and directed questions to Perkins.

"It's in the borrower's hands at this point," Brooks said.

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Brooks and auctioneer Stef Keenan of Keenan Auction Company confirmed Friday that the auction had been canceled. Keenan declined to comment further.

York Beach Surf Club LLC was represented in the refinancing transaction by attorney Adam Prescott of Bernstein Shur in Portland, according to Perkins' statements. Financing was provided by Thrive Lending out of Austin, Texas, and legal representation for the Perkins family was provided by Patrick Dunn, in-house counsel for the Perkins family, according to the statements. Closing for this transaction was managed by Clark & Howell/Matthew Howell in York.

A company with which Perkins is affiliated also bought the 84-room Sea Latch Motor Inn at 277 Long Beach Ave. last year, which Perkins has said will rebrand next year as the Beach House Hotel and Resort.

This article originally appeared on Portsmouth Herald: York Beach Surf Club, Maine auction canceled, 'soft opening' planned