Financially troubled Maui condos sold for $100M
WAILUKU, Hawaii (AP) — A Delaware company has agreed to buy the financially troubled Residences at Kapalua Bay for $100 million — almost twice the amount it bid for the luxury condos on Maui two months ago.
Island Acquisitions Kapalua LLC offered the high bid of $55 million at an auction in December. But on Thursday at a scheduled confirmation hearing, the sale was reopened because at least one new bidder offered $57.75 million.
Honolulu attorney and court-appointed commissioner George Van Buren told The Maui News (http://is.gd/KvsOC7 ) that there was further bidding and Island Acquisitions again came out on top.
Van Buren said 1st Circuit Judge Bert Ayabe in Honolulu confirmed the sale. It generally takes two months for the property to be conveyed to the purchaser, and after the deal closes, Island Acquisitions will own the majority of the units in the development, he said.
In December, 65 of the residential condominiums and 567 fractional-ownership interests in the property’s 62 time-share units headed to the auction block. The units and time-share interests that were being auctioned off were those that the developer had been unable to sell. The auction also included leasehold interest in The Shops at Kapalua, a spa and other amenities.
When the project opened in mid-2009, on the site of the former Kapalua Bay Hotel, it was touted as “destined to become Maui’s most cherished luxury homes.”
But project developer Kapalua Bay LLC, which is a joint venture among affiliates of Maui Land & Pineapple Co., Exclusive Resorts LLC and Marriott International Inc., ended up owing more than $304 million in principal and interest on the property.
John Chaney, president of the Kapalua Bay Vacation Owners Association, said that the association is looking forward to working with Land Acquisitions on a new strategy for the property.