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Owners Sue, Claim Fraud On Purchase Of Popular Myrtle Beach Venue

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David Huckshttps://myrtlebeachsc.com
David Hucks is a 12th generation descendant of the area we now call Myrtle Beach, S.C. David attended Coastal Carolina University and like most of his family, has never left the area. David is the lead journalist at MyrtleBeachSC.com

THEBlvd, 1410 N. Ocean Blvd., is a venue that features the Tin Roof, Bandito’s Cantina and Epic Arcade.

The property began construction in 2017 and sold in 2019 to Chalpin Realty SC LLC.

In a recently filed lawsuit, the current owners, Chalpin Realty SC LLC claim they were misled into purchasing the property for $20 million when the actual value of the property was much less.

Chalpin Realty’s lawyers are suing some of the most connected businessmen in Myrtle Beach, as well as, America.

The list of those being sued include:

Brian Macho is the Registered Agent for CPC OCEANFRONT, LLC

Macho is also currently working with Myrtle Beach City government in developing another planned amusement in Myrtle Beach.

According to Janet Morgan of MyHorryNews, Macho and the city are keeping mum about the planned amusement feature off Ocean Boulevard. The property is located off Ocean Boulevard between 14th Avenue North and 15th Avenue North, crossing Withers Drive, to Chester Street. It is across the boulevard from the Yachtsman and stretches to the rear of Chapin Memorial Library beside the former First Presbyterian Church.

The property is currently used as several parking lots and is zoned mixed-use high density. The change, if approved on the second reading, will put it into an amusement zone.

Macho said there are plans to build the amusement feature on the second row, which is the western side of Ocean Boulevard across from the Yachtsman and Tin Roof. The third row, which is the property behind the amusement feature, plans include several short-term rental homes with six to eight bedrooms in each home and a four-story parking garage.

CAREY E GRAHAM is the Registered Agent for LAND SOUTH OF MB, LLC. According to Land South’s website: Carey Graham received a Bachelor of Science degree in Agricultural Economics and Rural Sociology from Clemson University in 1982. Mr. Graham’s expertise includes residential and commercial development, rental property management, and dealing with governmental agencies involved in the development process. Mr. Graham has developed several commercial buildings including professional, retail, and restaurant establishments. He was a co-founder of Land South in December of 1992. Land South purchased nearly every asset class of non-performing loans from FDIC and the RTC which was active at the time.

Nick Stratigakes is the CEO/President of the Atwater Group.

According to the firm’s website: Nicholas Stratigakes founded Atwater Group, a privately held National Commercial Real Estate Development and Brokerage firm, based on the principles of competency, collaboration, accountability and relationships. Nick has built a leading team of dedicated experts who thoroughly understand the retail market with expertise in land acquisitions, development, and finance on a national level. As a result of this expertise, Atwater has developed an impressive array of long-standing clients who rely on the teams insight and advice to make informed decisions. Atwater’s primary focus in the Midwest, Southwest, Mid-Atlantic, and South Florida markets, with a core competency in urban trade areas. Atwater is large enough to manage any size project, yet small enough to maintain personalized client service.

Marcus & Millichap is a leading firm specializing in commercial real estate sales, financing, research and advisory services. The firm was founded by George A. Marcus (Chairman) and William A. Millichap (Founder) in 1971. According to the firms website: Our firm has the largest team of investment specialists in the industry, dedicated to meeting the diverse needs of private and major/institutional investors throughout the United States and Canada.

Judson Kauffman is also named on the suit. According to his listing on the company site: Judson Kauffman is affiliated with the NNN Properties Group, the top producing Net Leased Properties Group at Marcus & Millichap Nationwide. Judson works closely with different institutions, REITS, Private Equity Funds, Public Companies, Private Companies, Franchisees, Developers and Private Investors. He focuses on executing the sales of portfolios and single assets throughout the country. Judson has structured and executed numerous sale-leaseback programs tailored to the current market conditions, client’s overall goals and circumstances. His early background in retail leasing helped build a strong fundamental foundation for the sale of net leased investments. 

David Eyzenberg is president of Eyzenberg & Company, a NYC-based investment bank delivering best-in-class debt, equity and ground lease capital solutions for existing, transitional and to-be-built projects.

According to TRD Research:

Additionally, Mr. Eyzenberg is the founder of Eyzenberg LFC, an institutionally backed private equity vehicle specializing in the creation and acquisition of leased fee positions, subject to long-term ground leases, on development and existing income producing real estate.

Complementing his professional endeavors, he teaches graduate real estate finance studies in the New York University Schack Institute’s Masters of Science in Real Estate and NYU Stern MBA programs.

Local Lawyer Henrietta Golding is defending some of those named here. Golding blasted the allegations, calling them “fiction.”

As reported by Alex Lang of the Sun News,

The Chalpin family bought the Ocean Boulevard property in Myrtle Beach through a series of real estate deals, including selling a complex in New York to finance the South Carolina purchase. When the Chalpins bought THEBlvd., they say the defendants manipulated the price, leading to the fraud.

The scheme started in 2016 when the owners created unrealistic leases with tenants, according to the lawsuit.

Some businesses had rents that were not sustainable over the long term, or only planned to operate during the tourist season, the suit contends. The family was not aware of either issue when buying the property.

Soon after buying the property, issues with the tenants’ rents began, the Chaplin family states. Some tenants missed payments and asked for extensions. The issues grew worse in January and February 2020 — before the onset of the COVID-19 pandemic.

There were also maintenance problems, including leaky roofs and plumbing issues, the suit states.

The family hired an investigator, who determined the defendants were deceitful in the sale of THEBlvd., according to the filing.

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