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Kolea Beachfront Condo Inventory Remains High – Opportunity for Buyers?

Lunch today with some of my favorite Kolea owners reminded me that it’s once again been five months since I reviewed the Kolea real estate market. Inventory remains high with 16 active condo listings.

Only one property is contingent, that being the same underpriced short sale listing that was pending in April. However, we’ve had four closings of Kolea condos compared with two in the previous five month period. And we also saw the sale of one single family home and one lot – both distress sales.

Kolea 7F penthouse three bedroom for sale

View from Kolea 7F, my front row best buy pick now reduced to $2,100,000 (MLS# 258583)

Low End Buyers Still Look for ‘Deals;’ High End Buyers Looking for Relative Value

The pattern of sales is looking different for units in the six-plex buildings along the front row at Kolea, and the twelve-plex buildings behind them. “Low end” is a relative term for a beachfront community on the Kohala Coast. In this case, it means buyers are still focused on the price point of $500,000 that could have bought a smaller two-bedroom last year, or the $600,000s for the larger outside units. 

Hence the two sales recorded in the 12-plex buildings were both short sales:

  • 14D – closed for $440,000 (plus the hidden extras like furnishings and delinquent dues)
  • 16A – 3 bed/2 bath was listed and sold for $630,000 (plus furnishings) with an offer accepted in less than a week

Lowest priced Kolea condo for sale

Even the lowest priced Kolea condo has the built-in summer kitchen (MLS# 266199) for $699,000

If you are looking for a two-bedroom condo at Kolea, there are four listings of the 1,270 sq.ft. floorplan and five for sale of the 1,554 sq.ft. corner floorplan. The interior two bedroom asking prices range from $699,000 to $869,000 (with the least and most expensive being mirror-image in the same building). The outside two bedrooms are asking $899,000 to $1,250,000. The lowest priced unit of each type is, of course, the relative value purchase…the question is when this segment of the market will start thinking like the six-plex buyers.

In my April update I noted that Kolea 6E had been holding to their $1,795,000 price point for years (when that same floorplan sold for as little as $1.1 million in 2012); and wondered out loud if this would be the year they would get their price. SOLD last month for $1,700,000…and here’s the kicker, it was a financed sale.

Admittedly, the buyers may have put more than the minimum down, but the point is that at the high end, appraisals are not being held back by sold distressed comps. Top floor 13C closed for $2,100,000 – also financed. Even CNBC is reporting a “jumbo mortgage rush” as buyers of properties over $1 million are taking advantage before interest rates – and home prices – go higher.

Single Family Home and Lot Sold at Kolea

Kolea has 17 lots, about half with homes built, ringing the beach/ocean side of the community in front of the condominium buildings. The home on Lot 16 (the side with least ocean view) finally sold, as a short sale, for $2,800,000. The adjacent lot had gone to foreclosure, and was sold as a REO for $950,000.

Guess what? Home and lot sold to the same savvy buyer, who first dipped their toes in the water on condo distress sales, and have stepped up in recognition that there are fewer low end opportunities. And…back to my point, the $2.8 million sale was financed with a mortgage.

Kolea lot 5 house for sale beachfront

Kolea homes are set back a bit from the beach at Anaehoomalu Bay; this on lot 5 (MLS# 257650)

There is only one single family home for sale at Kolea, listed at $5,995,000 (MLS# 257650), which is a bit less than the sellers paid in 2006. This home was built on spec while I still worked for the developer and has solid, Maryl construction. Holding up well despite being an very active vacation rental.

I can’t recommend any of the Kolea vacant lots as a deal, given that the prices range from $3,450,000 to $6,250,000. For those prices, I could take you to Hualalai, Kukio or Kohanaiki.

Oceanfront Naupaka Place Investment Opportunity

But here’s some news. Just across the anchialine ponds from the Kolea lot and home that just sold, is oceanfront Naupaka Place. There have been three sales of direct oceanfront lots this year. That’s prompted the Naupaka developer to list two of the four lots they still own.

Naupaka Place lot ocean view

Ocean view Naupaka Place lot

Naupaka Place lots 1 (MLS# 266759) and 2 (MLS# 266760) are the farthest from the ocean in an oceanfront community of 11 lots, but the buyer can build a two-story home to maximize view. Each is over an acre, asking price $1,500,000. Given that the only residence built so far at Naupaka Place sold in 2009 for $9.5 million, I’ve long felt the lots at Naupaka Place are an opportunity for the right investor. Call me if you want to walk through the math!

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

You can subscribe to my blog posts at PB.HawaiiLife.com

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Pam Deery, R(B)

September 24, 2013

As always; you have great updates and good insider knowledge; it helps that you have the history of the Kolea development from dirt floor up.

It will be interesting to see the fall and winter market sales on the “lower end” as Kolea is the only “walk on the beach” development in the entire Waikoloa Resort and gets top dollar on vacation rentals.

a hui hou!

Pam Deery, R(B)

September 24, 2013

As always; you have great updates and good insider knowledge; it helps that you have the history of the Kolea development from dirt floor up.

It will be interesting to see the fall and winter market sales on the “lower end” as Kolea is the only “walk on the beach” development in the entire Waikoloa Resort and gets top dollar on vacation rentals.

a hui hou!

sean

October 5, 2013

Looks like sellers now have a bottom line. Inventory appears to very low in Waikoloa Beach Resort. Thanks for the updates.

sean

October 5, 2013

Looks like sellers now have a bottom line. Inventory appears to very low in Waikoloa Beach Resort. Thanks for the updates.

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