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Kohala Oceanfront Foreclosures Update

Regular readers of my blog posts may wonder whatever happened to that bank-owned Hawi oceanfront mansion, or the foreclosed beachfront homes in Kolea on the Kohala Coast I wrote about in a post two months ago?

Asking price is $6,500,000 for this Kolea home (MLS# 241295)…but may not be the best value

As of last week, the two REO homes at Kolea—the one on lot 13 offered for $3,695,000 and the one on lot 4 next to the Beach Club offered for $3,400,000—are both in escrow. That leaves the house on lot 16 offered for $3,750,000 and the one on lot 5 for $6,500,000.

The lot 5 house sold in 2006 for $6,600,000 to the current owners, who apparently don’t get that even setting aside distress sales, the house that sold in 2009 for $6,500,000 had 5,733 sq. ft. and 5 bedrooms versus 3,677 sq. ft. and 3 bedrooms; pricing seems to be more than $2 million off…wonder if they will look at offers?

Whale-watching lanai at Hawi oceanfront foreclosure (MLS# 244454) now down to $3,850,000

If just under $4 million is your target price point for your oceanfront home, you still have a shot at the 13,000+ sq. ft. home on 20 acres near Hawi. It recently had a small price reduction to $3,850,000, so the price keeps inching down. I predict the eventual buyer will walk onto the lanai just as a whale is breaching a few hundred yards away. With 7 months on market, the bank is wanting a quick close. Maybe try an aggressive offer with a 3-week close?

New on the market, two bank-owned oceanfront lots at Naupaka Pl: (MLS# 248560) and (MLS# 248561)

The new oceanfront foreclosure opportunity comes as twins: Lot 7 and Lot 8 at Naupaka Place next to Kolea were purchased by the same buyer. The bank now owns them after foreclosure and has just listed them for $2,550,000 each. Full disclosure: I am the listing agent for these lots, as well as adjacent Lot 9 (MLS# 233826).

What should lots at Naupaka Pl. be worth, given the price of homes selling at Kolea? It’s hard to make a direct comparison because there is a location premium at Naupaka. Look at the steps to the beach from Lot 7/8 Naupaka Place compared with the distance to the ocean from the Kolea home above. Plus, behind the gates of Kolea you find both single family homes and 16 condo buildings; behind the gates of Naupaka Place are only 11 lots. The one home that was built and sold in Naupaka is around 5,000 sq. ft. with 4 bedrooms. It changed hands twice for $10,500,000 at the market peak in 2007 and for $9,500,000 in 2009.

For more information about these or other oceanfront and beachfront properties for sale on the Kohala Coast, feel free to call or email me directly!

A hui hou,
Beth

Beth Thoma Robinson, R(B)
Direct: 808.443.4588  
Email: beth@hawaiilife.com

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Pam Deery

November 9, 2011

Beth; Great update. The Naupaka ocean front lot listings were actually on the market before the lender foreclosed. Please remind me of the price at that time. Would the bank take terms??

As for the Hawi property, could a buyer use the property as a retreat?

Pam Deery

November 9, 2011

Beth; Great update. The Naupaka ocean front lot listings were actually on the market before the lender foreclosed. Please remind me of the price at that time. Would the bank take terms??

As for the Hawi property, could a buyer use the property as a retreat?

Beth Thoma Robinson R(B)

November 10, 2011

@Pam, thanks for the great questions. I just sent info to a prospective buyer on Lot 7, which sold twice previously, for $4.5 and $ 6.0 million. Buyers would need to arrange their own financing if not paying cash.

The question comes up a lot about potential uses for the Hawi property. Depends on what you mean by retreat! If you mean could, for example, a company buy for use by its employees and guests, that’s no problem. If you mean could it be used for, say, a bed-and-breakfast or farm-stay operation, that would be a question that could only be answered by applying for a permit. There are in general issues with overnight accommodations on ag-zoned land in North Kohala which I’m happy to discuss with potential buyers.

Beth Thoma Robinson R(B)

November 10, 2011

@Pam, thanks for the great questions. I just sent info to a prospective buyer on Lot 7, which sold twice previously, for $4.5 and $ 6.0 million. Buyers would need to arrange their own financing if not paying cash.

The question comes up a lot about potential uses for the Hawi property. Depends on what you mean by retreat! If you mean could, for example, a company buy for use by its employees and guests, that’s no problem. If you mean could it be used for, say, a bed-and-breakfast or farm-stay operation, that would be a question that could only be answered by applying for a permit. There are in general issues with overnight accommodations on ag-zoned land in North Kohala which I’m happy to discuss with potential buyers.

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