This popular Myrtle Beach oceanfront spot might not be worth its price, new owner says
An Oceanfront development — home to one of Myrtle Beach’s most popular music and restaurant venues — is now at the center of a million-dollar lawsuit and allegations its commercial value was inflated.
THEBlvd, 1410 N. Ocean Blvd., is home to places such as the Tin Roof, Bandito’s Cantina and Epic Arcade. It started construction in 2017 and sold in 2019. The new owners said they were misled into purchasing the property for $20 million when the actual value was much less.
A lawyer for some of the defendants blasted the allegations, calling them “fiction.”
The current owners, Chalpin Realty SC LLC, filed suit against a host of defendants in Horry County court last week. The defendants are: Patrick Marino, CPC Oceanfront Delaware LLC, Coastal Dining and Entertainment LLC, CPC Oceanfront LLC, Brian Macho, Land South of M.B. LLC, Atwater Realty Corp., Nicholas Stratigakes, Marcus & Millichap Real Estate Investment Services Inc., Judson Kauffman, Eyzenberg & Company LLC and David Eyzenberg.
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.
At no point does the Chaplin family lawsuit note the correct market value for the property, but states several times the $20 million price was inflated. The family asks for an unspecified amount of money in the suit.
Myrtle Beach attorney Henrietta Golding, who represents Macho, criticized the allegations.
“It’s a fiction,” Golding said. She added many people involved in the sale, on both sides, such as building inspectors and appraisers.
The falsehoods — as Golding described them — happen as many companies face challenges because of coronavirus’ impact on the economy.
“To come back and make these horrendous allegations is really ridiculous,” she said.
The defendants were blindsided by the filing, Golding said. Marino did not respond in time for this report.
