A month ago I blogged extensively about the Hawaii Life/Concierge Auction events that sold Mauna Kea and Hualalai Resort properties on the Big Island. I mentioned at the end the auction to take place the following week on Oahu’s North shore.
The decision was made to add a tiny parcel the seller had been saving for himself to the Paumalu Ranch acreage being sold and postpone the auction for a month to April 30th. Now 110 acres rather than 101 acres, divided into two adjacent parcels of 56 acres and 54 acres, I’m told bidding on Tuesday will begin at only $1 million for the mauka parcel and $3 million for the ocean bluff overlooking Haleiwa and Sunset Beach.
Before you read on, take a moment to watch the video from Concierge Auctions and pause at around 57 seconds
Rare Offering: Large Acreage on Oahu’s North Shore
One of my 2011 articles that still generates calls today was about the working cattle ranches then listed on the Big Island’s Hamakua Coast. Most of these buyers are looking for a ranch or farm in Hawaii to add to a portfolio of properties they own and enjoy. Many of them would be arriving from areas that don’t have direct flights to Hilo…and at least one member of the family would prefer to have fine dining, shopping, or beautiful beaches within easy driving distance. I’ve just described the perfect buyer for this North Shore Oahu acreage.
Currently being grazed by cattle, either parcel would make an exquisite equestrian estate and there is an active community of horse-owners and events in the neighborhood. This area of Oahu has a long history of farming as well (does the brand “Dole” ring a bell?) if you don’t see yourself living next to livestock.
Speaking of who you will find yourself living next to, that is probably the most distinctive feature of this property. Rather than being in an area prone to development, you are surrounded by large acreage whose owners include the US government. You are separated from the nearest developed mauka area by the 1,000-acre Pupukea Forest Reserve. Your access is via “Girl Scout Camp Road.” Because you are well above the highway and town, you could build in such a way as to imagine yourself in a truly remote area on the Big Island or upcountry Maui…yet with all the amenities of Haleiwa at your feet.
Map showing land ownership of neighboring parcels to the ranch set for auction
Why the Buyer with Vision Might Get a Deal at Auction
I mentioned in my earlier article about this year’s luxury real estate auctions in Hawai’i that selling vacant land at auction can be tougher than selling a resort property because once the gavel falls, the buyer is committed. Your due diligence must be done up front – and there are a lot more technicalities to grasp with raw land, and especially in Hawaii, and when that land is zoned for agriculture. This level of uncertainty is one reason why prospective buyers tend to be a bit conservative in their bids – to allow for what they might have misjudged.
All the documents are available to prospective bidders (although with the auction on Tuesday, you’ll need an attorney who is knowledgeable to review and ask questions quickly). I’ve toured the property with the individual who put these parcels together and solved the issues (primarily access) that kept them from being marketable previously, and although buyers won’t have that opportunity, the seller’s track record is solid. And having toured the property, I can tell you the emotional draw of the views, energy and privacy of this North Shore acreage is not at all conveyed by the videos and photos.
The single aspect of the property that bothers many prospective buyers is what could allow the buyer with confidence and vision to get a real deal at Tuesday’s auction. See the pink area to the right of Paumalu Ranch on the map above? The owner of that acreage is Intelsat Global Services LLC…and if you stop the video at around 57 seconds or 1 minute 20 seconds, you will see their dish array. You will also see that from the logical building sites on the ocean bluff parcel, these structures will be well behind you. From the back parcel, they are off to the side and easily screened from view.
From a health perspective, I’ve been assured that there are no health concerns due to electromagnetic emissions…but lacking the study that could have demonstrated that, this factor may be limiting the buyer pool for a property that otherwise would certainly be bid sky-high.
If the pink elephant in the room sounds like an opportunity rather than a threat…call or email me. The deadline for registration was Friday, but Concierge Auctions will make exceptions.
A hui hou,
Beth Thoma Robinson R(B)
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