I attended the foreclosure for the Ritz-Carlton Residences, Kapalua Bay today, which took place today on the courthouse steps in Honolulu. With just two bidders, the opening bid was Ritz Carlton Development, with an opening bid of $52 million. The second and highest bid was Island Acquisitions, with a bid of $55 million.
This is for the bulk purchase with no separate or individual sales of
- 56 residential and 5 commercial fee simple apartments in the “Kapalua Bay Condominium”
- 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)
- Leasehold interest for the parcel known as “The Shops at Kapalua Parcel”
- Certain contract rights known as the ML&P Agreements dated June 19, 2006.
This is just the first step in the foreclosure process, as it is subject to court confirmation in 4-6 weeks. At that time, bidding can be reopened at $57.75 million, and it is expected the key players will return at that time.
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 potentially a re-launch of sales at that time.
I will continue to post updates to my blog. In the meantime, please feel free to contact me if you'd like additional updates or more information. I am gathering an interest list of parties that would like more information as it is made available.