A new fractional ownership development on Kiawah by Timbers Resorts was recently announced. This development is the result of a sale from Kiawah Partners to Timbers Resorts.
The site is located near the entrance to Beachwalker County Park, outside the Kiawah Island Main Gate but still a part of the community association. The plan is to build three 4-story buildings, each with seven units, as well as a separate clubhouse (with an 800-square-foot fitness center and a concierge) and a swimming pool. There will be two 3-bedroom units on each of the three lower stories and one 4-bedroom penthouse on the top floor.
This development will share one characteristic with timeshares, which is that they have fractional ownership (Town of Kiawah Island ordinances do not permit timeshares but do allow fractional ownership). Unlike a timeshare, ownership in each unit is not spread across 52 owners, rather the 4-bedroom penthouse units will each have six owners and the 3-bedroom units will each have nine owners. As a result, there would be a total of 180 owners versus over 1,000 in a typical timeshare of this size. Also, unlike many timeshares, these are very high-end properties with a target price of $500,000 per owner for the 3-bedroom units and $1.2 million per owner for the penthouse.
In terms of the legal relationship between these properties and KICA, The Timbers group will pay the prevailing annual assessment to KICA for each of the 21 units (21 full fees). Like other multiple ownership properties on Kiawah, one owner (“the primary owner”) from each unit will have full access to KICA amenities, voting rights for the unit, etc. Also like any other multiple owner properties, secondary owners have the option of paying an additional amenity assessment for a Sandcastle membership. The Timbers group has indicated that they plan to provide these Sandcastle memberships for each of the secondary owners and incorporate the added cost in the annual ownership costs passed along to all 180 owners. This means KICA will receive 159 additional amenity assessments. The association, however, feels that Sandcastle usage by Timbers owners is likely to be low based on the fact that they will have their own fitness center and oceanfront pool.
From a Kiawah Island Club perspective, the development has been given the rights to 21 memberships. The current plan will be to offer these first to each of the 18 penthouse buyers. The remaining three memberships, plus any available if a penthouse buyer elects not to join the club, would be offered to the 3-bedroom unit buyers. KICA understands that the 21 owners electing to take one of these memberships will have identical rights and privileges as any other Kiawah Island Club member.
For more information on Timbers Resorts, visit timbersresorts.com.