Makena Resort Foreclosure goes to the Lender for $55 Million

Makena Beach & Golf Resort - former Maui Prince Hotel

The ongoing saga of the Makena Resort reached another milestone today in the foreclosure auction at Maui County’s Wailuku Courthouse. Approximately 50 people showed up to watch the auction proceedings held by the Court appointed Commissioner, Chris Lau. There were only 2 registered bidders at the auction – the lender (Wells Fargo Trust) and another unnamed bidder.  The sale was quick  and ended within 2 minutes of opening the bidding at $40 million. The final winning bid by Wells Fargo Trust came in at $55,000,000. Wells Fargo Trust represents the creditors who are owed approximately $200,000,000 in outstanding debt and accrued interest. The sale must be finalized at a court confirmation hearing before the Judge Shackley F. Raffetto in appoximately 30-45 days. This is not the end of the story as the Judge may open up bidding at the court confirmation hearing as long as there is a buyer willing to pay at least 5% above the winning bid price.

The approximately 1800 acre Makena Resort includes the 310 room former Maui Prince Hotel (now under court receivership and renamed the Makena Beach & Golf Resort) along with the Makena North Course – an 18 hole Robert Trent Jones, Jr. designed golf course, the Makena South Course which is now closed and needs to be renovated, a golf clubhouse, pro shop, driving range, Makena Tennis Club, three restaurants and bars,  2500 square feet of meeting space, hiking trails and approximately 1,300 acres of vacant land. The sale is subject to resolution of a outstanding lawsuits by neighboring property owners.

The SaveMakena.org group showed up with signs promoting the protection of the Makena Resort. Hopefully whomever ultimately ends up with the property will consider the history and culture of the area and will care for the land -Malama the Aina.

Everett Dowling in partnership with Morgan Stanley purchased the resort at the peak of the market in 2007 for $575,000,000. After defaulting on the mortgage Wells Fargo Trust became the receiver in August of 2009. Although the sale is not final until court confirmation it is likely the resort will have a new owner for pennies on the dollar of what it sold for in 2007.

For photos of the Makena Resort properties visit Makena Resort photos

For information on Maui real estate and property for sale visitMaui real estate