York Beach Surf Club up for auction
Owner works to refinance
YORK, Maine — The York Beach Surf Club is facing foreclosure for the second time in two years, with an auction scheduled for the end of the month.
The auction is slated for Oct. 26 at 11 a.m. at the hotel at Long Sands Beach. Taylor Perkins, owner of the Surf Club at 780 York St., said he has been working with his bank on an extension and expects the auction will be canceled. He and his father, renowned Maine surfer Sonny Perkins, bought the property in 2020 and converted it from a cottage colony to a multi-amenity resort.
Perkins similarly refinanced in 2021 when the hotel faced foreclosure. An auction was scheduled for October that year and eventually called off after Perkins worked out a new deal with his bank.
“We’ve now worked it all out,” Perkins said Oct. 5. “It’s just taking more time than we anticipated.”
Auctioneer Stef Keenan of Keenan Auction Company said Monday, Oct. 9, the auction was still slated to happen. However, he said, those plans could change as a forbearance agreement was in the works between the bank and borrower. The property is assessed at $4,498,000, according to the listing.
Two previews of the property for prospective buyers were scheduled for Oct. 10 and Oct. 19. Keenan said the bank negotiations have resulted in the first preview being called off.
“I believe the borrower is working with his lender,” Keenan said. “They’ve been able to get tomorrow’s preview canceled. They have not, at this point, canceled the auction.”
York Beach Surf Club a tribute to Sonny Perkins, 1960s surf scene
The York Beach Surf Club is an homage to the surf club of the same name started by his father Sonny in the 1960s. Its land has been used by tourists for almost a century, previously named York Harbor Motel & Cottages.
Perkins and his father purchased the property in 2020. They transformed it with architecture influenced by surfing, including using repurposed
surfboards in its construction. The new hotel features 42 guest rooms, 10 bungalows, a heated saltwater pool and pool bar. It also included an oceanfront lawn space with a raw oyster and cocktail bar named the Rolling Pearl.
The major renovations and construction at the Surf Club property were not completed without financial challenges. Court documents from 2021 showed that York Beach Surf Club LLC defaulted on three outstanding loans to Kennebunk Savings Bank, leading to the auction scheduled that year. That auction was ultimately canceled after the Surf Club was able to refinance.
At the time, Perkins said their hotel was not the only one to face “shortfalls, overages and pandemic-associated delays.”
Now, as he looks to refinance again, Perkins said he fully expects the auction will be called off again. He reiterated what he said two years prior, that challenges exist for hospitality businesses in the current climate.
“Rates are high. It's tough to refi a property like this,” Perkins said. “Now we're moving forward.”
Auctioneer: Foreclosure sale to go forward unless deal worked out
Sheehan said until the auction is canceled the firm is continuing with its plans to host an Oct. 19 preview of the property, which is scheduled from 11 a.m. to 1 p.m.
Keenan Auction Company's website touts the property's new amenities brought to life by the Perkins family.
“The property has undergone a transformative renovation, rebranding and an upscale repositioning of the complex that was completed in 2022,” reads the listing.
Those bidding in the auction must provide a $100,000 deposit in cash or certified U.S. funds. The auction will take place on the property. Keenan said last-minute postponements are not uncommon with foreclosure auctions. He said prospective buyers have been asked to contact their office in the event it does become postponed or called off.
“I think there are some benchmarks that need to be met,” Keenan said. “I think this is all coming down to the wire.”