🔒Sandy Pines auction back on docket in next phase of Chapter 11 case

Sandy Pines Campground in Kennebunkport is back on the auction block just two months after seeking federal bankruptcy protection to restructure its debt, with a foreclosure sale now slated for May. Atlantic Hospitality, a hotel management and design company led by Tim Harrington, owns Sandy Pines, a "glampground" vacation village located about a mile from Goose Rocks Beach. Currently booking for its tenth season, the 46-plus-acre site, furnished with a heated saltwater pool, offers a range of lodgings from tent and RV sites to more luxurious options. There's even a Glass House touted for starry nights. A sample search on the Sandy Pines website shows that for two nights over the July 4 weekend, a couple would pay an average of $99 per night for the most basic tent site with no electricity and $589 per night for a “Whimsical Retreat” with all the perks. In 2023, when Harrington was honored as a Mainebiz Business Leader of the Year, he spoke of hiring challenges as well as increasing demand for travelers to Maine and his interest in pursuing more hospitality projects here. Sandy Pines offered insights into its financial status in its latest monthly operating report filed with the U.S. District Court for the District of Maine. The 58-page document, filed on April 21, shows total assets of $16 million and liabilities of $20 million in March. The original bankruptcy filing listed the town of Kennebunkport as the campground's largest unsecured creditor. Other large creditors include Spectrum Business and the Kennebunkport-Arundel Chamber of Commerce, whose Executive Director, Laura Dolce, declined to comment on Wednesday.

New auction timeline

While the bankruptcy filing had postponed an earlier foreclosure auction, the sale is now back on the docket with Portland-based Keenan Auction Co. A spokesperson for Atlantic Hospitality did not immediately respond to a request for comment. Along with Keenan Auction Co., Sandy Pines has hired CBRE Inc., a Portland-based property management company, and Hunneman Commercial Real Estate, a Boston-based brokerage, as sale brokers, according to an April 28 court filing. A separate filing dated April 23 is a draft sale and purchase agreement with the buyer and seller names left blank. Attorneys from Portland-based law firm Bernstein Shur are representing the debtor in the bankruptcy case. The planned auction comes two weeks after Atlantic Hospitality sold the indebted Asticou Inn in Northeast Harbor for more than $60 million, three years after buying the property for $7.75 million, followed by a $28 million renovation. Atlantic Hospitality also owns and operates the Wanderer in Kennebunkport, the Lincoln Hotel in Biddeford, the Dunes on the Waterfront in Ogunquit and two properties in Downeast Maine under the Atlantic Collection banner. Harrington also co-owns Batson River Brewing & Distilling, with locations in Biddeford, Kennebunk, Wells and Portland. Initial sealed bids on the Sandy Pines property are due to Keenan by Wednesday, May 27, with the top five to be selected the following day. Final bids are due May 29, after which the winning bidder will proceed with the purchase and submit a 5% deposit. If approved at a June 9 hearing, the sale could close within five days, with a possible three-day extension, according to Keenan’s website.