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 me 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.
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