I've been to the courthouse several times to watch foreclosure auctions. This was the most crowded auction I've seen so far. Several properties were up for sale, but the majority of the people in attendance were here to see the fate of the Ilikai Hotel.
Honolulu attorney, George Van Buren was the commissioner and auctioneer of the property. There was one bidder, IStar - which happens to be the lender that foreclosed on Anekona Companies. In the photo above, the bidder (attorney Stephen Mau) is shown, who represented IStar.
First, the 203 residential units were offered. IStar bid $35 million. Next, the 16 commercial units were offered. IStar bid $15 million. The whole bidding process took about a minute.
Anxious watchers included Local 5 union members wearing red t-shirts, who work at the Ilikai Hotel. I asked them what they thought of the auction. They said they were happy that one company, IStar won both auctions. They believe that IStar will be a good employer for them.
After the auction, George Van Buren was interviewed and he seemed pleased with the process. The sale is subject to court confirmation, which should take place in about 30 days. At the confirmation, other bidders are allowed to submit offers which are at least 5% above the current bid amounts.
IStar's bid for the residential properties amounts to approximately $172,000 per condo. In 2006 when Anekona Companies were having better times, they were selling residential units for more than $500,000 each to individuals. Shell Vacation Resorts bought another 43 units at an average of $409,000 each.
Anekona left a big mess for Ilikai Apartment Building owners and the homeowners association. When Bruce Anderson's businesses started failing, they quit paying the common charges on the units owned by Anekona.
Many feel it's a positive sign that IStar is taking over the units formerly owned by Anekona. We hope to see Ilikai residential unit prices rebound in the coming months. It will also be nice to see the commercial areas of the Ilikai fill up with new tenants.
Aloha, Mike Bates
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