Former California Palms sold again at $1.3M profit
A palm tree festooned property with a storied past at Route 46 and Interstate 80 in Austintown has been sold for a second time in less than two weeks at a $1.3 million profit.
According to Mahoning County Auditor’s records, the building that once housed the California Palms Hotel and later a substance rehabilitation facility has been sold by the New Jersey company that purchased it earlier this month.
Records show that New Jersey-based GEM Consulting Group, which purchased the property for $6,550,000 on September 12, sold the property on September 21 to VDBE Youngstown LLC and VDBE Youngstown TIC LLC for $7,850,000.
Ohio Secretary of State records show that VDBE was organized on August 9, with Elliot Teitelbaum of Riverside Filings as the statutory agent.
Documents filed with the state do not list a purpose for VDBE, which owns no other properties in Mahoning County.
Riverside Filings is also the registered agent for VDBE Bradenton Tic LLC of Dover, Delaware, according to the Delaware Department of State.
According to the Florida Business Observer, VDBE Bradenton TIC LLC was one of the entities that sold condominiums in Bradenton, Florida earlier this year.
In April, Los Angeles-based lending firm Pender Capital took over ownership of the Austintown building when a Writ of Restitution was served on Sebastian Rucci, the owner of the 200-bed California Palms Addiction Recovery Campus at Route 46 and Interstate 80.
In October 2019, a judge ordered the addiction recovery center to vacate the property over a $4 million debt owed to Pender.
California Palms was renovated as a hotel in 2014 when Hollywood Gaming at Mahoning Valley opened.
The 3 acres parcel was first constructed as a hotel in 1972.