Wailea Real Estate Update – Single Family Homes

With its tropical setting, picture-perfect weather, top-rated beaches, and world-class amenities, Wailea is a much sough after destination. And for those considering a purchase of a Wailea property, it becomes incumbent on potential buyers to be well acquainted with real estate trends and available inventory.

The Wailea Single Family Residence (SFR) market has been somewhat stagnant in the past three years, arguably due to the downwards pressure on values by REO’s (bank-owned/foreclosures) and Short Sales – although not a great amount (7 REO’s and 5 Short Sales), still significant enough to have an impact on values in Wailea. And as the market continues its shift from a clear buyer’s market to a more balanced market, let us take a look at data.

As noted, although values in the previous 36 months had hovered in the high $500′s to low $600′s per square foot, 2013 has thus far proven to be a significant shift in valuation, with 6 sales concluded at an average price per square foot of over $739. And with 7 other sales pending, it is clear that the Wailea real estate market is in moving forth with continued momentum and can prove to the district with the biggest improvement year over year.

As always, valuation is best measured at a micro-market, hyper-local level – so please contact us for more information about a specific property. Specializing in the Wailea and Makena markets, our agents are poised to represent clients diligently and ethically while providing expert-level information.

Residences on Kapalua Bay Update

kapalua bay

The confirmation hearing for the Residences on Kapalua Bay (formerly the Ritz-Carlton Residences, Kapalua Bay) took place this morning at the first circuit court. The judge first heard a motion to intervene on behalf of an original reservation holder in the developer sales. Three parties bid, with a starting bid of $60 million, bid up to $100 million in 22 increments.

We are hopeful that with this confirmation that matters will be resolved and sales will recommence. For more information regarding this Kapalua property, please contact Courtney Brown

Wailea Beach Villas Market Update

As 2012 winds down to a close, it becomes an opportune time to compare 2012 to the previous year in order to determine market trends, particularly in micro-niches. With that, let us examine the state of the market in Wailea Beach Villas and draw reasonable conclusions thereof.

First, let’s take a look at inventory and how it is being absorbed by measuring new listings coming on the market and the number sales transpiring within the allotted time period.

wailea beach villas update chart
The most glaring fact is that 2011 absorbed WBV units at a much faster pace, with 15 new listings coming on the market in 2011, resulting in 6 sales. Compared to 16 new listings in 2012, which only led to 3 sales. But beyond inventory absorption, let’s look at values – which arguably can best me measured by price per square foot.


At first glance, it looks as though listing prices decreased slightly while there was a very marked  increase in price per square foot. But of course, for those knowledgeable of the Wailea Beach Villas, the sale of a REO (foreclosure) in unit PH-208 skews the numbers significantly, as it sold for $916 per square foot and thereby puts unnecessary downwards pressure on overall values. As distressed sales in Wailea Beach Villas have been an anomaly (that was the only REO ever listed and 1 short sale was listed for 10 days prior to being cancelled), by examining the data excluding that REO, the sales price in 2011 was $1,766 per square foot.

But as in every niche of real estate, location is a key factor in comparing valuation, so examine the Wailea Beach Villas map below and note the locations within the complex in which sales are taking place.


Good comparables abound, so let’s take a look at C-301 which sold for $4.5M and D-301 in 04/2012 and D-301, which sold for $5M in 09/2011. Both units have very similar floor plans, were both fully furnished upon sale, enjoy premium locations within the complex, near the highly sought-after A and B buildings, and are very close in size, with D-301 being slightly larger. This comparison reveals very slight market fluctuations in pricing and could be credited to individual circumstances (negotiation, motivation of principals involved, etc). Overall, the Wailea Beach Villas market has leveled off and absorption is the lowest since inception – it could be argued that WBV potential buyers are waiting to see what happens with the upcoming sales in Andaz Maui at Wailea – but with increased interest during high season, 2013 will prove to be a very interesting time in the ongoing story of Wailea Beach Villas. For more information about current listings available, including one of the best values in E-202, the state of the market, or to list your Wailea condominium for sale, contact the Island Sotheby’s International Realty team of professionals.

* Disclaimer: The information above is reflective of available data as of 12/20/2012. Should additional sales take place in Wailea Beach Villas, information will be amended*

Sotheby’s International Realty – October Significant Sales

sotheby's international realty significant sales

Sotheby’s International Realty Significant Sales

As proud members of the Sotheby’s International Realty family of real estate professionals, we are please to share the October edition of Significant Sales – in which a sale by our Oahu affiliate, Mary Worral Associates Sotheby’s International Realty, recorded one of the highest sales within the network, in the transaction of a stunning oceanfront estate at a sales price of $9,999,995. View the complete file in high resolution by clicking here

For those considering the sale of a Maui luxury property, take a moment and contact the team of Island Sotheby’s International Realty for a discreet consultation and more information.

Maui Insights: Chang’s Beach

 

A favorite among local divers and snorkelers, Chang’s Beach sets the perfect playground for those looking to explore the area, have a fun day in the sun, or simply partake in the beauty that Makena has to offer. Fronted by Makena Surf and other luxury Makena properties, beachgoers will enjoy an uncrowded beach rich in sealife (turtles can be seen on the beach from time to time) that stands in a class of itself.

changs beach in makena

North View of Chang’s Beach

When the surf is high, bodyboarders flock to Chang’s Beach as conditions are ideal – yet during calm conditions, it offers some of the best snorkeling setting anywhere on Maui. The small cove on the south end of the beach features an off-shore reef where snorkelers and divers will observe plentiful of sealife and one of the most stunning reefs in Hawaii. Divers rejoice in exploring the large underwater cave system, but caution must be adhered as conditions are dangerous even for advanced divers.

Chang’s Beach is named after the Chang family, a well known family who owned and farmed the land; in fact, the “Five Graves” snorkeling spot is off-shore from the small graveyard of the namesake family. There is off-street parking by the public beach access at Makena Surf and additional paved parking near “Five Graves”. Be cautious as Chang’s Beach does not have lifeguards on duty. There are showers and picnic tables for the enjoyment of beachgoers.

Makena Surf Beachfront Condos on Chang’s Beach

In Hawaiian, the word “Makena” means “Bountiful” and Chang’s Beach clearly reflects the Indescribable natural beauty that can be found in Makena. For those interested in purchasing Makena Real Estate, please feel free to ask any questions that you may have by contacting us today.

Ritz-Carlton Residences Kapalua Bay: Foreclosure Auction

The foreclosure for the Ritz-Carlton Residences, Kapalua Bay took place today on the courthouse steps in Honolulu. With just two bidders, the opening bid was Ritz Carlton Development, with an opening bid of $52 million. The second and highest bid was Island Acquisitions, with a bid of $55 million.

This is for the bulk purchase with no separate or individual sales of

  • 56 residential and 5 commercial fee simple apartments in the “Kapalua Bay Condominium”
  • 567 club interests in the Kapalua Bay Vacation Ownership, Project consisting of undivided 1/12 interests in various condominium units (which specific units are available upon request)
  • Leasehold interest for the parcel known as “The Shops at Kapalua Parcel”
  • Certain contract rights known as the ML&P Agreements dated June 19, 2006.

This is just the first step in the foreclosure process, as it is subject to court confirmation in 4-6 weeks. At that time, bidding can be reopened at $57.75 million, and it is expected the key players will return at that time.

While it is open to speculation as to what will happen, and depends largely on the intent of the highest bidder, I believe we will see a restructuring of the properties pricing and potentially a re-launch of sales at that time.

I will continue to post updates to my blog. In the meantime, please feel free to contact me, Courtney Brown, at cb@LuxuryRealEstateMaui.com if you’d like additional updates or more information. I am gathering an interest list of parties that would like more information as it is made available.

Ritz Carlton Club and Residences – Foreclosure Auction Update

kapalua bay

To follow up on a previous post, The Ritz-Carlton Club and Residences®, Kapalua Bay will be going to foreclosure auction on Monday, December 3, 2012. On June 13, 2012 a notice of foreclosure was filed by the lien holders, and all sales of both fractional and whole ownership units were suspended. I plan on attending the auction in Honolulu and will post an update afterward to my blog.

According to the Commissioner’s website, the auction details are as follows:
DATE: December 3, 2012 at 12:00 noon.
LOCATION: Ewa end of the First Circuit Building (Ka’ahumanu Hale), 777 Punchbowl Street, Honolulu, HI
TERMS OF SALE: The auction will be held for a bulk sale, “As IS’, for one price, with no separate or individual sales and no upset price for the following:
1) 56 residential and 5 commercial fee simple apartments in the “Kapalua Bay Condominium”
2) 567 club interests in the Kapalua Bay Vacation Ownership, Project consisting of undivided 1/12 interests in various condominium units (which specific units are available upon request)
3) leasehold interest for the parcel known as “The Shops at Kapalua Parcel”
4) certain contract rights known as the ML&P Agreements dated June 19, 2006.

At the time of auction, with the exception of the Plaintiff, the successful bidder must make a down payment of no less than ten percent. The sale is then subject to a Court confirmation hearing, and the Court will allow a reopening of the auction in higher bids, beginning at 105% of the highest bid at the public auction.

The debt is in excess of $304 million, with Lehman Brothers and Lantern as the lien holders with the largest stake. While it is open to speculation as to what will happen, and depends largely on the intent of the highest bidder, I believe we will see a restructuring of the properties pricing and a re-launch after the foreclosure.

At this time, I am compiling an interest list of clients that would like to be kept updated as information is made available. If this is something you would be interested in, please contact me, Courtney Brown, at cb@LuxuryRealEstateMaui.com

Opened on May 31, 2009, the Ritz-Carlton Club and Residences®, Kapalua Bay is Kapalua’s newest residential condominium community. Situated on 21 oceanfront acres, overlooking Kapalua Bay, the Ritz-Carlton Club and Residences® are comprised of just 84 private ownership Residences, and 62 fractional residences (1/12 ownership) that are managed by the Ritz-Carlton Club®.

It is my understanding that the Ritz-Carlton will maintain management of the property until 12/31/2012, and there is talk of an extension until mid-June, 2013. There is currently pending litigation between some of the homeowners and the management company.

Developed by Kapalua Bay LLC, the Ritz-Carlton Residences Kapalua Sales History is as follows: 15 of the original developer units were purchased in bulk for $56,574,392 by Exclusive Resorts for their vacation rental program. An additional 13 sold to private individuals at prices ranging from $2,800,000 to $5,735,000. Total sales were 28, or 33%, leaving 56 units unsold. With regard to the fractional component, information is more limited. Of the 62 fractionals, it is my understanding that approximately 177, or 24%, of the 744 available units were sold.

Maui County Permit Information – Open House with Dept Representatives

On December 4th, members of the public will have the opportunity to ask representatives from the departments of Planning, Public Works, Environmental Management, Water, and Fire to address any permit-related questions. Mayor Alan Arakawa’s Permit Process Improvement Team has arranged for an Open House on December 4th, 2012 at the Kalana O Maui Building, 9th Floor, 200 South High Street, Wailuku, from 1 to 4 p.m. in the Mayor’s Conference Room. Registration is at the front desk, upon exiting elevators on 9th floor.

Take a list of your questions, as you will be able to go from representative to representative during this time. Bring your building plans and supporting documents, and make the most of this fantastic opportunity. For more information, you can contact Wendy Taomoto at (808) 270-6258 (Capital Improvement Program Coordinator).

Why get permit? If your project does not comply with the building codes for the community, you could be reducing the value of your investment. When built to code, potential hazards of unsafe construction will be avoided, and the minimum standards of safety will be met. Insurance Companies may not cover damages caused by unpermitted work. When selling your home, you must disclose any repairs and/or improvements made without permits and inspections. A buyer will be wary of property that doesn’t have permits because they may not be able to obtain financing. It is the law, by County Ordinance that certain work be permitted. Either you as Seller or Buyer as new owner may be required to tear down the addition, leave it unoccupied, do costly repairs, or be fined.

Depending on the scope and location of the project, your submitted application may need to be reviewed by Public Works: Building and Planning, Subdivision Section, and Engineering Section, Management Information Systems, Planning Department, Department of Environmental Management, State Department of Land and Natural Resources, State Department of Education, and the Department of Housing and Human Concerns.
For more information on the permitting process and valuable resources, department phone numbers, and a checklist for your application process, visit the Maui County building permit page by clicking here. Contact Valerie Lounsbury for more details on real estate opportunities on Maui.

Ritz-Carlton Club and Residences Update – Upcoming Foreclosures

ritz carlton kapalua

I’m often asked what the status is of the Ritz-Carlton Club and Residences®, Kapalua Bay. Opened on May 31, 2009, the Ritz-Carlton Club and Residences®, Kapalua Bay is Kapalua’s newest residential condominium community. Situated on 21 oceanfront acres, a stone’s throw from Kapalua Bay, the Ritz-Carlton Club and Residences® are comprised of just 84 private ownership Residences, and 62 fractional residences (1/12 ownership) that are managed by the Ritz-Carlton Club®.

It is my understanding that the Ritz-Carlton will maintain management of the property until 12/31/2012, though this date is subject to change. There is currently pending litigation between some of the homeowners and the management company.

Developed by Kapalua Bay LLC, 15 of the original developer units were purchased in bulk for $56,574,392 by Exclusive Resorts for their vacation rental program. An additional 13 sold to private individuals at prices ranging from $2,800,000 to $5,735,000. Total sales were 28, or 33%, leaving 56 units unsold. With regard to the fractional component, information is more limited. Of the 62 fractionals, it is my understanding that approximately 177, or 24%, of the 744 available units were sold.

A notice of foreclosure was filed by the lienholders, and all sales of both fractional and whole ownership units have been put on hold at this time. The debt is in excess of $304 million. While it is open to speculation as to what will happen, and depends largely on the intent of the highest bidder, I believe we will see a restructuring of the properties pricing and a re-launch after the foreclosure.

At this time, I am compiling an interest list of clients that would like to be kept updated as information is made available. If this is something you would be interested in, please contact Courtney Brown at cb@LuxuryRealEstateMaui.com

According to the Commissioner’s website, the auction details are as follows:
DATE: December 3, 2012 at 12:00 noon.
LOCATION: Ewa end of the First Circuit Building (Ka’ahumanu Hale), 777 Punchbowl Street, Honolulu, HI
TERMS OF SALE: The auction will be held for a bulk sale, “As IS’, for one price, with no separate or individual sales and no upset price for the following:
1) 56 residential and 5 commercial fee simple apartments in the “Kapalua Bay Condominium”
2) 567 club interests in the Kapalua Bay Vacation Ownership, Project consisting of undivided 1/12 interests in various condominium units (which specific units are available upon request)
3) leasehold interest for the parcel known as “The Shops at Kapalua Parcel”
4) certain contract rights known as the ML&P Agreements dated June 19, 2006.

At the time of auction, with the exception of the Plaintiff, the successful bidder must make a down payment to the Commissioner in the amount of no less than ten percent. The sale is then subject to a Court confirmation hearing, and the Court will allow a reopening of the auction in higher bids, beginning at 105% of the highest bid at the public auction.

For additional information on the Terms of Sale, please contact the commissioner, George W. Van Buren, of Van Buren, Campbell, and Shimizu LLC.

Estate Planning

sunset in maui
It’s a great time to invest in resort and second-home properties on Maui. According to the Realtors Association of Maui’s September Statistics, Year-to-Date sales for Wailea/Makena are up 17% for single-family homes, median sales prices down 47% for single-family homes, and down 18% for condos. Your retirement plans of spending 6 months of the year in a tropical paradise like Maui can now be more than  a dream!

Tax Specialists are suggesting that you handle your estate plan before January 1, 2013, if real estate is part of your retirement plan. You can plan your estate by consulting an estate attorney and a CPA. Be sure to take an accurate list of all your assets with you: investments, retirement savings, insurance policies, real estate and business interests. Seek information from the Hawaii Department of Taxation, 800-222-3229 or 808-587-4242, and check out websites like www.FPAnet.org and www.stephens.com for financial planning services.

In June of 2010, Hawaii reenacted its estate tax that had been dormant since 2005. Consult with an attorney and/or CPA about non-resident exemptions on property taxes. Also consider asking them about setting up a trust to own the real estate, a Durable Power of Attorney for each place you reside (so all your financial and legal documents are in place, to help if you have property and bank accounts in multiple States or Countries), an Advanced Medical Directive, and a Living Will.

According to an October 2012 article in AARP, “low cost of living, modest taxes, and nice weather” are factors to consider when selecting a retirement area. Hawaii appeals to many retirees because of its weather, beauty, and laid-back lifestyle. For questions about how a Maui property purchase can be within your financial objectives, contact Valerie Lounsbury.