Sun News - More than 200 acres of former Myrtle Beach Air Force Base property near The Market Common is up for sale after the owner failed to make payments and the lender started foreclosure proceedings. The Withers Preserve planned unit development was zoned for commercial and residential uses, and the undeveloped land is now under the jurisdiction of a court-appointed receiver. Barclays Capital Real Estate Inc. filed to foreclose on Myrtle Beach Property Development LLC a few months ago and asked the court to appoint a receiver to take care of the property, according to court documents. Myrtle Beach Property Development owner Robert O'Neel could not be reached for comment Thursday. His company borrowed $50 million from Barclays in 2006. The land is the collateral for the loan, and when the development company failed to make payments Barclays began the foreclosure process. The company owes Barclays about $47.2 million.
Stephen McCrae, a lawyer with K&L Gates in Rock Hill who is representing Barclays, said he couldn't comment on what the lender's plans are for the property but said that the foreclosure action was awaiting referral to the Master-in-Equity. Two parts of the planned development, the Alexan Withers Preserve apartment complex and the strip of commercial properties owned by Tennessee-based real estate development company, Holrob, are not part of the foreclosure. The 12 parcels involved are on both sides of Farrow Parkway near the intersection with U.S. 17 Bypass. "Our role is really to step in. It's a positive move," said Wilson, who has 22 years of experience as a receiver throughout the country. "We're there to preserve the entitlements and take care of the property and maintain the insurance." Wilson said that he is seeing an increase in similar cases across the country and that the foreclosure does not mean it is a bad property. In fact, he said the property has a strong long-term value and there has already been interest from potential buyers. "It's merely a situation reflective of the real estate markets in general," Wilson said. "The transaction is reasonably straightforward. You just have an overbuilt product without a lot of demand today."
Wilson has had to negotiate new insurance policies and ensure the safety of the property. He recently hired Colliers Keenan, a Columbia-based commercial real estate company, to market the property. Another of Wilson's duties has been to negotiate with the South Carolina Department of Transportation, which is trying to buy two pieces of the property. Richard Lovelace, a Conway lawyer, is representing the receivership in court in the sale because a judge has to approve the sale of the property to the SCDOT. "I think they're close to reaching a settlement with the highway department on two parcels," he said. In June the court authorized Wilson to proceed with the sale of the land to SCDOT, according to court documents. O'Neel, the owner of Myrtle Beach Property Development, could not be reached for comment but he had invested heavily throughout the country and many of his projects are now in foreclosure, according to The Press Democrat in Santa Rosa, Calif. "You know, I can look back at all kinds of things and say I never should have done it. But I can't. Those were decisions I made at the time," he said to The Press Democrat.
Buddy Styers, the executive director of the Myrtle Beach Air Force Base Redevelopment Authority, said that the foreclosure could be good for the area. "I hope it's a good thing that they can get something started out there. It would sure benefit Myrtle Beach, Horry County and it would certainly benefit The Market Common to get some more development out there." David Wilkes, the executive vice president of Dock Street Communities, which built much of The Market Common, said the company is watching the foreclosure process. "We would not be not interested in any opportunity that would present itself in that area but are we actively seeking it currently? Not right now," he said. While Dock Street is focused on some residential construction projects, Wilkes said the land would be a great property for someone to buy. Gary Roberts, the broker-in-charge of commercial division of Coldwell Banker Chicora Real Estate, who sold the property to O'Neel years ago said he thinks that plans are great and the area has a lot of potential. "I absolutely believe that there will be a buyer for that," he said.
