Koloa, HI

It was announced today that the Kukui'ula developers will invest $165M to complete the facilities and recreational amenities that had previously been on hold. Co-developers A&B Properties and DMB Associates are reported to have renegotiated their agreement leading to this infusion of capital. This thousand acre planned residential community is located on Kauai's South Shore just West of the Poipu resort area. This development combined with the Kukui'ula Village retail center will be a huge upgrade for the area. The retail center itself is slated to open for business this Summer.

Aloha,

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May 25, 2009 Kauai REO Foreclosure Update

Poipu Beach Hotel is coming back online as the new Koa Kea Hotel & Resort

Hurricane Iniki wiped out Kauai's South Shore hotels (and most of the rest) in 1992. Most have been rebuilt but two have remained closed. The two are the Poipu Beach Hotel and the Coco Palms remembered by many from Elvis' Blue Hawaii film. The Coco Palms is still an eyesore after developers gave up on renovations after running into issues with permitting. But finally the Poipu Beach Hotel is reopening tomorrow. It's been renovated and has a new name, the Koa Kea Hotel & Resort. For those who want to check it out on-line, their website is HERE.

Better yet, come on over to Kauai, check in, and enjoy the famous Poipu beaches. Now we're down to the Coco Palms and I surely hope something happens there soon.

Aloha!

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Kukui'ula, which covers 1,010 acres between Po'ipu and Lawa'i Valley on Kaua'i's southern shore, is a luxury community planned for 1,200 homes, an 18-hole golf course, a resort spa, 75,000-square-foot commercial village and a 31-unit boutique hotel.

Described as "Kaua'i's Living Garden," the plan also includes $85 million in landscaping, a 20-acre lake, trails, a 5-acre beach park, a 20-acre community park and an 8-acre farm staffed by a resident horticulturist.

When the project was first released, the "founders" secured deposits for lots with a $50,000 commitment. Over 300 lots were reserved but not everyone followed through as the speculative climate for land began to deteriorate in 2006. Some of The lots in Kukuiula sold for upwards of $3 million for a 3/4 acre lot when the market was in a frenzy. Now, as sales have slowed, and the general climate for land purchases on Kauai has been compromised by the economy, comes word about Kukuiula's future.

According to General Manager of the project, Richard Holtzman"As the economic crisis has deepened in recent months, we have recognized we must plan for an even more protracted downturn," Holtzman said in a statement.

"The total capital needed to sustain the project will obviously be affected by the length and severity of the current recession. Thus, we are evaluating the long-term outlook, refining financial planning assumptions and discussing the best approach to meeting the growing capital needs."

Just goes to show you that our economy's downturn is effecting every nook and cranny of our market, even the developers with seemingly the deepest pockets.
The shopping center which is one small piece of the project, is just about completed and expected to open this summer. It is long overdue for more shopping and amenities in this most popular tourist destination on our island. I hope the shopping center stays on schedule. As far as the long term prognosis goes, without a financial partner, it may prove difficult for A&B properties to continue on.

Read the entire story from today's Honolulu Advertiser

There are also several lots for resale from the original buyers. If the project goes on hold, the lots prices may come down significantly.

The updated Kauai real estate inventory chart is presented below. The 3+ year climb may have resumed as shown in the chart. The dip in early November was hopeful but as I always say "one month does not a trend make". Nevertheless, we may be starting to flatten out and another few months will give a better picture on that. Unfortunately, the Koloa/Poipu area on Kauai's south shore continues to climb without a break. This is likely because of the high concentration of condos in Poipu which normally attract mainland buyers. Those buyers have been conspicuously absent, both as measure in real estate sales and in tourism. Todays lower prices and ultra-low interest rates should start to make some of these properties irresistable.

Aloha!

Search Kauai/Big Island | Search Maui | Email | About Me | Visit Website | Phone/Text (808) 651-4550

Engineering Hawaii Dreams Today--Helping Buyers Find Dream Homes & Sellers Find Buyers

Visit www.KauaiRocks.com for Hawaii real estate information