The Kolea condo market continues to show serious strength. Four months ago I wrote about the stunning recovery of condo sale prices at beachfront Kolea at Waikoloa Beach Resort. With five closings since July and one penthouse Kolea villa in escrow, as October ends we find ourselves heading into high season with low inventory and strong demand.
The Kolea Beach Club has a pool, spa, and private access path to the beach (and the new Lava Lava Beach Club restaurant)
News: Prices Up for Distressed Properties (Short Sale and REO)
Of the five Kolea condos sold since July, two were short sales that had been waiting for bank approval and one was a REO (bank owned after foreclosure) that prompted a bidding war. In other words, three out of the five were distress sales. But this does not imply a market dominated by distressed properties. The news is that there is a line of Kolea buyers waiting for those opportunities, and prices are being bid up.
One of the short sales, Kolea 14B, which is the two-bedroom end second floor end unit, had been showing contingent for a full year before the short sale was approved and the deal closed for $540,000. What’s not obvious in this price is that there was an enormous delinquent dues balance associated with this unit that had to be dealt with in the transaction. I did not represent buyer or seller, but having done many short sales can only assume that the actual price buyer paid in one way or another included settlement so the Association would release their lien. The full balance would have taken the price of this condo over $600,000.
The other short sale, Kolea 7A, 3-bedroom ground floor in the 6-plex buildings, sold for $1,050,000…and for comparison, the same floorplan one building over sold 9 months earlier as a non-distressed sale including furnishings – for $940,000!
Those of us in the know had been waiting a couple of years for the bank owner to release Kolea 13B. Listed at $1,129,900, bidding took it to $1,201,000. And since I represented the buyer, I happen to know that it appraised for well over the sale price. Which means it was a great deal for the buyer…but the bank is undoubtedly happy as well since 13E next door sold three years ago for $1,050,000.
Stay tuned for one more of these second floor units in the foreclosure auction process. Looking at the delinquency report and lis pendens, we aren’t expecting any additional foreclosures at Kolea.
Ocean View Penthouses Reestablish Premium with Prices Over $2 Million
The 2,147 sq. ft., 3 bed/3.5 bath Kolea villa is only found on the 2nd and 3rd floors of the front row buildings. This has been the year of the penthouse, with three sales over $2 million and a fourth condo currently in escrow. The top price of $2.4 million was for Kolea 4C, which closed in July.
This leaves us in an odd situation with active listings. The count has increased slightly, with nine condos listed, two of them brand new listings. The only penthouse listings are 2F at $1,799,000 (MLS# 257654) and 1F, newly listed at $2,300,000 (MLS# 257587). Buildings 1 and 2 face towards the Hilton with ocean views across Naupaka Place, rather than looking out towards the beach at Anaehoomalu Bay (“A-bay”) and sales have reflected a location discount.
If there is one best buy left of the largest condo floorplan at Kolea, that would be Kolea 2F (MLS# 257654), asking price $1,799,000. Don’t get stuck on the fact that seller paid $1,500,000 in 2010. As the sales above show, prices are up…and this unit had substantial renovation with an interior designer since its 2010 sale. And the two second floor units on the market are listed $1,795,000 and $2,095,000…
Short Sale Buy at Kolea: Residence on Lot 16
Short sale on Kolea residence offered at $2,999,900 (MLS# 226945)
The only other short sale at Kolea is on the Lot 16 residence (MLS# 226945), which is back on the market after the buyer got frustrated by the long process and walked. Granted, Lot 16 is right in front of Building 2 (location discount?), but that also means more privacy than the only other home for sale at Kolea, asking price $5,995,000 (MLS# 257650).
Which is value-priced: the 2,147 sq. ft. 3 bed penthouse condo offered at $2,300,000 looking down on this home, or the 3,389 sq. ft. 5-bedroom home with private pool for $2,999,900 – or whatever the lender will accept?
A hui hou,
Beth Thoma Robinson, R(B)