Anekona Companies, the troubled developer of the Ilikai will see its interest in the property auctioned off on April 15th, 2009.

Brian Anderson, owner of Anekona, bought approximately 343 of the Ilikai's rooms and commercial spaces in July, 2006.  One hundred and forty of the renovated rooms were successfully sold.  As the real estate market hit its peak and turned downward, Anekona was stuck with condotel units that it couldn't sell for a profit.

Anekona's holdings at the Ilikai are currently 203 condo units and 16 commercial properties.  Before we all get excited about bidding at the auction, please note that the units will be sold in bulk.  Yes, one bidder can buy them all.

Individual owners are a bit relieved, while also concerned about changes to come.  Part of the concern is with Anekona's unpaid maintenance and electric bills owed to the homeowners association and said to be in excess of $1 million.

Other headaches were the possible closure of the Ilikai.  The former court-appointed receiver, Joe Toy had put closing on the table as a possibility.  Mr. Toy said the Ilikai's income was not enough to keep Anekona's 203 units open unless Anekona's lender, IStar FM Loans LLC would fund the operation.

Apparently IStar didn't like what they were hearing and they asked a judge to replace Mr. Toy with George Van Buren, a Honolulu attorney.  Mr. Van Buren was appointed in late February 2009 and he immediately announced that the Ilikai would remain open.

Buying Ilikai condos

Oahu's housing market has slowed significantly in the last year.  Many owners of units for sale are selling at a loss.  It's possible that prices could go down further.  On the other hand, now that there's light at the end of the tunnel for Ilikai condo owners, prices may stabilize.

Click here to view condos for sale at the Ilikai

Visit our Hawaii foreclosures webpage and click foreclosure notices dated 3-15-09 to see auction info for the Ilikai.

Aloha, Mike Bates

Oahu MLS