Hewaii's economy is slowing and people are looking for causes. Unemployment in our state is at 7% at a 30-year high. TV news stations frequently remind us that construction employment is a significant factor in the rate of job losses.
Moana Vista construction was halted in December 2008. The developer is seeking additional financing to complete the project. Options include finding a partner with financing to complete the building and selling off other real estate investment.
Fred and Annie Chan, owners of KC Development, have the Kaiser Estate in Portlock on the market for $80 million. The price seems quite high, considering the property is in need of major repairs. On the other hand, the estate covers more than five acres of land on a prime spot in east Oahu. If the a sale of the Kaiser Estate fetches anywhere near $80 million, it should at least be a shot in the arm for KC Development to get things rolling again.
Earlier this week the project's contractor, Hawaiian Dredging filed a lawsuit stating that $30 million is owed on the project. It appears to be a public statement to other possible creditors of Moana Vista.
Moana Vista's sales office remains open and prospective buyers are driven to the affordable pricing. It's hard to make long term plans when a buyer doesn't know how long it will be until the move-in date. Another concern is interest rates. They are very favorable right now but they can't be locked in at this point in time. When construction resumes and an accurate date is determined for completion it will be time to discuss locking in a rate - and where will they be then?
Buyers can be comforted in knowing that their deposits are held in escrow. The money cannot be spent until the final report for Moana Vista is issued and the buyers have had 30 days to review and approve the report. Buyers can cancel and get their money back, less a small escrow fee.
Question: Historically, which way do prices go in Hawaii? Answer: Up.
Ten years ago, lots of us were hemming and hawing about the direction of the market and what to do. Then prices took off. I believe those times will come again. This might be the time to plant the seeds for your next residence.
Please visit our Moana Vista webpage, which includes a price list.
Aloha, Mike Bates