Created in the late 1980s and early ‘90s as a luxury oceanfront getaway with amenities that included a 52-room inn, 24,000-sq. ft. conference center and 18-hole Jack Nicklaus signature golf course, the checkered history of the Melrose Resort on Daufuskie Island has included two bankruptcies and one owner being jailed for wire and tax fraud. But now its 400 acres are reportedly under contract with an unnamed buyer, according to real estate filings. The property, which has been largely vacant for years, had been listed for $15 million, with its “quintessential” Lowcountry location and multiple opportunities for development touted as primary attractions.
The 400 acres that make up the failed Melrose Resort on South Carolina’s Daufuskie Island are under contract with a buyer, according to a real estate listing, The Island Packet of Bluffton, S.C. reported.
The property, which has been largely vacant for years while it was tied up in bankruptcy and court proceedings, had been listed for $15 million, The Island Packet reported. It was not clear what the closing date or final sale price would be. Bridge Commercial, a real estate firm based in Charleston, S.C., is representing the seller in the transaction.
Bridge Commercial’s Executive Vice President, Hagood Morrison, said he was unable to provide information about the seller or the buyer because of confidentially agreements but confirmed the property was under contract, The Island Packet reported. Beaufort County property records indicate the owner is Redfish Holdings of Chicago.
The Melrose Resort, originally developed in the late 1980s and early ‘90s, was once a luxurious oceanfront getaway, The Island Packet reported. Amenities included an inn, a Jack Nicklaus signature golf course with views of the Calibogue Sound and Hilton Head, a conference center, swimming pool, equestrian center and tennis courts.
The real estate listing touted the resort’s “quintessential” Lowcountry location between Hilton Head Island and Savannah, Ga. on Daufuskie Island, which is accessible only by boat, The Island Packetreported. The sale includes the 52-room inn, the 24,000-sq.-ft. conference center, the 18-hole golf course, the equestrian center, the beach club with pools, seven duplex cottages, one single cottage, and the deepwater marina on the Intracoastal Waterway. The listing also pointed to the possibility of developing around 400 units in addition to multiple opportunities for new development along the 1.5 miles of oceanfront property.
The property first declared bankruptcy in 2009 and was still in bankruptcy when it was purchased in several transactions by James Thomas “J.T.” Bramlette between 2011 and 2013, The Island Packetreported. Approximately $17.5 million toward the purchase of four parcels, renamed as Melrose on the Beach, came from a Dutch lender.
In or around 2013, Anthony Mark “Tony” Hartman became part-owner. When Bramlette purchased the property, he told The Island Packet, “We’re going to revitalize this entire project.” He talked about developing an outdoor amphitheater and establishing a market where people could buy necessities without leaving the island.
Instead, the property and its inn fell into disrepair. Bankruptcy was declared a second time in 2017 (https://clubandresortbusiness.com/future-melrose-resort-determined-week/).
In August 2021, Bramlette pleaded guilty to wire fraud and tax fraud in federal court in Charleston (https://clubandresortbusiness.com/guilty-pleas-in-fraud-and-theft-cases-shine-light-on-industry-crime/). Prosecutors said Bramlette committed wire fraud against Beaufort County in the amount of $500,000 in unpaid taxes, failed to pay $1 million in payroll taxes to the IRS, and used at least $1.8 million of investor money for personal use without disclosing any of it to the IRS.
According to the federal indictment, Bramlette and Hartmann defaulted on a $700,000 loan from a group of Utah attorneys in May 2015 but did not disclose to investors that they had lost ownership, The Island Packet reported. The men continued to raise millions of dollars from private investors in the name of the resort.
While employees, vendors and payroll taxes were not being paid, the indictment said Bramlette used more than $1.5 million for personal expenses such as mortgage payments on his Utah residence and rent on his mistress’ apartment, Range Rover payments, country club dues and his daughter’s college tuition, The Island Packet reported.
Bramlette is now listed as an inmate at the Sheriff Al Cannon Detention Center in Charleston County, The Island Packet reported. On November 4, 2021, a motion was filed by then-Acting Assistant U.S. Attorney Rhett Dehart to continue Hartmann’s case until the next term of court because he was being considered for participation in a pretrial diversion program in lieu of prosecution.
