WBTW

Myrtle Beach Superblock property flipped minutes after sale for additional $225K

MYRTLE BEACH, SC (WBTW) – Horry County property records show one of the properties in the Myrtle Beach superblock area was sold for $100,000. Minutes later, the same property was sold to the Myrtle Beach Downtown Redevelopment Corporation for $325,000.

The superblock project is one that’s come with many questions and few answers. Myrtle Beach city leaders are now explaining how the property, 507 9th Avenue North, was sold twice in one day.

Myrtle Beach City Manager John Pedersen says the building was being leased-to-own by a man named “Diego,” the owner of a company called Holly Family, LLC.

Pedersen says the previous owner of the property made a deal with Holly Family, LLC to sell the building for $100,000 because, at the time, the property needed a lot of work.

“He significantly improved the property,” explains Pedersen. “He brought it up to code, put a business in on the first floor, the second floor had another business – had a tenant there – so he had an ongoing business there.”

When the city wanted to buy the property, the owner had to first close his lease-to-own deal.

“In return, we paid for that property,” states Pedersen. “The DRC (Downtown Redevelopment Corporation) paid for that property in simultaneous transactions. So, one happened and then the other happened.”

Pedersen says the city paid the additional $225,000 minutes later because the building was in good condition, which increased the property value, and there were two business owners inside the same building.

The DRC bought other buildings, similar in size, for about $150,000.

Horry County records show the address for Holly Family, LLC is the same as Myrtle Beach City Hall, which sparked News13 to ask about a potential lack of transparency, but Pedersen says that was a paperwork error.

“I assume documents were sent to the same address or something because the closing was simultaneous,” justifies Pedersen.

A different address for Holly Family, LLC was on the Secretary of State’s website. When News13 arrived, the building was empty, except for a Myrtle Beach City Planning and Zoning map hanging on the wall.

“There’s no relationship between the City of Myrtle Beach and the Holly Family, LLC,” claims Pedersen.

News13 asked the Myrtle Beach city spokesperson why there was a city map inside the empty building listed for Holly Family, LLC if there’s no connection. He says the city sells the maps to the public all the time.