Even the buyer of foreclosure Halii Kai 24C (MLS 242791) can walk down to the Ocean Club for sunset
At the beginning of January I wrote a review of Halii Kai condo short sale and foreclosure activity and although this is titled February update, I have to confess that 7 weeks have passed. Since my previous post, all of the action has been in short sales, REOs, and DEVELOPER inventory, hence the revised title of this post. The activity over the past couple of weeks contains a few surprises.
SOLD SURPRISE
There was only one closed sale during this time period, one of the REOs. I was surprised both by which one of the three REOs for sale went first, as well as by the amount of discount to the asking price (typically when banks list property they only accept offers close to asking price, then gradually reduce that price until it sells).
The three REOs (bank owned, post foreclosure) were all the same 1082 sq ft, 2 bed/2bath floorplan. The lowest price of the three, garden-view 24C, came on the market at $338,000 which seemed like a compelling discount to the developer's close out of 21C in September for $395,000.
Both 2C and 4B are on the golf course, and both are the rare units of this floorplan with a garage rather than a carport. With 2C listed at $394,900 and 4B listed at $414,800, I would have predicted 24C to go first, forcing both 2C and 4B down in price.
Instead, 2C closed escrow this week for $340,000 (following an intermediate price reduction to $374,900)!
The asking prices are now $319,000 for 24C and $394,319 for 4B. So watch for a big adjustment on 4B and an offer below asking on 24C. Even the developer agents concede that these are prices with which they will not compete, at least not directly.
UNSOLD SURPRISE
While two short sale listings accepted offers since my last report, there are still four short sales available. Curiously, the all are the 3 bed/2 bath floorplan which in some years has been the best-selling unit. I think they haven't sold yet because 3 out of 4 are still in a rental pool and therefore not often available to show:
Here's the run down on those deals:
18H - the lowest priced at $409,000, was supposed to go to auction. It has been twice delayed on technicalities, but this is my listing and a smaller bank whose negotiator is very direct with me. For them to look at a short sale this late in the game, it would have to be a cash offer, and the buyer would have to agree to settle delinquent HOA monthly dues (which with attorney's fees could be $30K or more). Still, with the lowest sale to date at $445,000 for this floorplan, an investor could end up with a sweet rental next to the tennis courts.
6E - now a short sale at $525,000. Only a peek a boo ocean view from the lanai, but a well maintained unit and if it is being rented, that means it is current on dues.
12E and 12H are both short sales offered for just under $1 million. I personally think these are the screaming deals at Halii Kai, although I think the comps suggest that the savvy buyer should offer well below the $999,000 asking price. Many people prefer building 12, which other than the three oceanfront buildings is the closest to the water, to the oceanfront buildings. Oceanfront gives a stark lava-and-ocean view, which is softened by the golf course fronting building 12.
My reference point for the upside potential of these units is still Mauna Lani Point and Mauna Lani Terrace, which are similar close to the ocean (and with the private Halii Kai Ocean Club substituting for the Mauna Lani Beach Club if you want a bite to eat while you enjoy the view). A beatifully furnished 2 bedroom 1481 sq ft Mauna Lani Terrace condo closed escrow today for $1,600,000...
A hui hou
Beth
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