Palm Beach timeshare resort sells out of bankruptcy for $10M

Copperline Partners paid $9.8 million for a former timeshare resort on Palm Beach’s waterfront.

In a bankruptcy sale, an entity controlled by Copperline Managing Principal Adam Schlesinger bought the Palm Beach Resort & Beach Club at 3031 South Ocean Boulevard, according to records. West Palm Beach-based Copperline, a commercial real estate firm, financed the purchase with a $5.7 million loan from Maxim Credit Group.

The resort’s condominium association, as the debtor in possession, sold the two-story, 29-unit building. Palm Beach Resort & Beach Club was completed in 1982, records show.

U.S. Bankruptcy Court Judge Erik Kimball approved the sale in February, following the condo association’s June filing for bankruptcy liquidation. Schlesinger did not respond to phone messages seeking comment.

According to the condo association’s bankruptcy filings, the board of directors voted to sell the property to Copperline in May, about a year after 809 out of the 1,191 timeshare owners voted not to continue their timeshare ownership. At the time of its bankruptcy petition, the condo association had roughly $20,000 in unsecured claims and about $1.2 million in assets, the bankruptcy petition shows.

Ido Alexander, the condo board’s attorney for the bankruptcy, said the association was in good financial health. “Bankruptcy was a mechanism used to effectuate the sale in a more streamlined and effective approach,” Alexander said. “Now that the sale has closed, we are in the distribution process.”

Alexander said the sale proceeds and the association’s assets will be divvied up among the former timeshare owners.

Copperline owns six multifamily and hotel properties in Palm Beach, Sunrise, Tampa and Little Torch Key, as well as real estate assets in Connecticut, New York and Pennsylvania, according to the firm’s website.

Among the company’s Palm Beach properties is the Ambassador Hotel Cooperative Apartments, less than a mile north of the Palm Beach Resort & Beach Club. In 2019, Copperline bought the former co-op at 2730 South Ocean Boulevard in Palm Beach in a bulk deal for $35 million.

A year later, Copperline sold an apartment complex in Coral Springs for $75 million.