Kauai Real Estate and Local News Update April 13
*****Hilton Kauai Beach Resort Auction*****
Another Brian Anderson property is in trouble. On the heels of last weeks news that Andersons Waikiki Ilikai is being auctioned off an announcement was made that his Hilton Kauai Beach Resort and it will be sold at public auction next month. The 145 condominium hotel units and 15 commercial condominium units will be sold in bulk at the May 6 auction at the entrance to 5th Circuit Court in Lihue. The New York lender, iStar Financial, filed for foreclosure on the property claiming Anderson and his KB Resort LLC were in default of nearly $29.5 million in unpaid principal, interest, late charges and fees. The amount was what remained from an original loan of $85.75 million — $75.75 million borrowed from sub prime lender Fremont Investment & Loan on Dec. 7, 2005, and $10 million advanced in July 2006, according to the complaint. In June 2007, iStar took over the loans after it acquired Fremont’s commercial real estate lending business.
Good news here on Kauai with our second week of decent sales, most of them being residential. Getting a loan for vacation rental condos has recently gotten a whole lot tougher here in the islands and Kauai has not been any exception. Current “condo-tel” loaning policies have become a consistently changing landscape for those properties lucky enough to be able to get loans on them. For a list of what has come on the market and what sold for last week here on Kauai CLICK HERE FOR SPREADSHEET
*****Hawaiian Airlines Sees Surge In Passengers*****
A 17.7 increase was seen in the number of passengers for the month of March by Hawaiian Airlines. Pretty good when you consider that in March of last year Aloha Airlines was still flying and competing with them. Hawaiian carried 609,000 passengers in March 2008 and are up at 716,000 for March of 2009. Hawaiian Airlines share price went up 35%.
*****Suspicious Containers Found at Coconut Marketplace*****
A security guard discovered two suspicious containers late morning on Thursday during a routine check. The Kauai Police Officers and the Kauai Fire Department Hazmat barricaded the area and two Kauai Officers were stationed at the scene overnight. The next day the Explosive Ordinance Disposal unit from Schofiled Barrack in Oahu arrived and took the necessary steps to insure that the contents of the containers were safe for the Hazmat team evaluate the contents and then the Police Department brought the containers into the Lihue station for further testing.
*****Princeville Residents Considering Coastline Pathway*****
A path to connect the communities of Kilauea, Princeville and Hanalei was the subject of Thursday night’s community meeting at the Prince Clubhouse. Residents support a path that was thought of a year ago that would allow for pedestrians to bike and walk along the coast. Stating that “Obesity, coronary disease and sedentary lifestyles are some of the biggest health threats that we face as a nation” the pros of undertaking such a massive project far outweighed the cons. The grass roots group is called Ke Ala Hele Makalae (The Path that Goes by the Coast) and Ben Welborn of Landmark Consulting is in the process of creating a North Shore Path Alternative Report which will outline the advantages and feasibility of such a path so heartily supported by the North Shore Residents.