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Beach's Cavalier hotels are for sale

Updated: January 4, 2013 - 4:31 pm

Posted: January 4, 2013

By Lydia Wheeler

lydia.wheeler@insidebiz.com

Virginia Beach's Cavalier on the Hill and its sister hotel, the Cavalier Oceanfront across Atlantic Avenue, are for sale.

CBRE | Hotels was retained to sell the historic seven-story, 110-room hotel on the hill, which opened in 1927, and the 11-story, 282-room Cavalier Oceanfront hotel, which opened in 1970.

According to CBRE | Hampton Roads, the original hotel on the hill hosted presidents and other celebrities in its heyday and claims to be "the hotel that made Virginia Beach famous."

According to city records, the property is assessed at $34.25 million.

The Cavalier Hotel complex has more than 50,000 square feet of meeting and function space. Along with the two hotels and a conference center, the facilities include an indoor pool in the original hotel, an outside pool and kiddie pool adjacent to the newer hotel, outdoor tennis courts on both sites, along with a fitness center, kid's play room, food and beverage outlets at both locations, and a below-ground parking garage. Also on the approximately 21.2-acre property are an owner/manager residence, employee housing and automobile repair garage.

Doug Henkel, Tom Ives, Lew Miller, Andy Wimsatt and Kym Halsted of CBRE | Hotels are representing the seller.

The hotel has been entwined in an ongoing family feud that has played out in court.

In August, Buckingham County Circuit Court Judge Jane Roush ordered the dissolution of The Disthene Group, a company run by the hotel owners Gene Dixon Jr. and Guy Dixon.

The ruling is the result of a lawsuit filed by Curtis Dixon Colgate, Sharon Marie Newcomb, Marion "Boyd" Colgate Sr. and Peaceful Valley Limited Partnership in July 2011.

Gene Dixon Jr. and Guy Dixon are Colgate's uncle and cousin.

The hotel is being sold as part of a court order to dissolve the company and liquidate all of its assets, including the hotel.

Though a drastic remedy, the court concluded that dissolution was appropriate because of the long-standing oppression of shareholders, as well as waste and misapplication of corporate assets, according to court documents.

The court was to appoint a receiver to liquidate the business and wrap up affairs of the corporation.

Calls made to Alan Wingfield, the attorney representing Gene Dixon Jr. and Guy Dixon, were not returned. Calls made to John Craddock, a Richmond attorney representing Colgate, also were not returned by press time.

Halsted of CBRE | Hotels said CBRE never quotes a price on a property in an asset sale.

"We usually get a better price if we go to market unpriced," she said. nib

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