Penticton's Waterfront Inn is part of a group of three Penticton motels that sold for $12.9 million.
Image Credit: Submitted/Colliers Canada
October 30, 2023 - 4:31 PM
A court ordered sale has awarded three Penticton motels to a numbered company for $12.9 million.
The sale comes after a history of troubled relations between the previous owner and mortgage holders.
The Beachside Motel, Sunny Beach Motel and Waterfront Inn have 70 rooms in five buildings along Parkview Street, across the road from Skaha Lake Park and beach.
The properties went into receivership a couple of years ago and the owner redeemed them with a $4.9 million mortgage.
READ MORE: Three side-by-side Penticton motels in '10 out of 10' location for sale
“Then he borrowed a bunch more money and the second mortgager is now going to take control,” Bill Randall, executive vice-president of Colliers Canada, told iNFOnews.ca. “He got the loan prefaced on the fact he was going to redevelop the property into large scale residential. He had an appraisal of $16 million. That’s how he got the loan.”
The registered owner was listed in court documents as 3624 Farms, 3648 Farms and 3688 Farms.
Five offers were made on the motels, ranging from $6.75-$12.9 million, with the receiver accepting the highest bid late last week.
The new owner is 486 BC Ltd., which held the $4.9 million second mortgage on the property.
“If you put a little bit of TLC and money into those, they would be almost new, steps to the beach or steps to the park, it’s a great location,” Randall said. “They (buyer) is not a developer. I think their plan it to spend a little bit of money, try to get the revenues up and, potentially, try to resell this down the road.”
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