Dwindling Condo Inventory For Sale at Mauna Lani Resort

There are four newer (post-2000) condominium projects at the Mauna Lani Resort on the north side between the Shops at Mauna Lani and the Fairmont Orchid hotel: Villages at Mauna Lani and Fairways at Mauna Lani on the makai (ocean) side of the street; Kulalani and Ka Milo on the mauka (mountain) side of the street.

My Hawaii Life team has closed sales at each of these projects this year at very attractive prices: a short sale at Fairways, developer sales at Kulalani and Ka Milo (and a pending short sale at Ka Milo-fingers crossed!), and just a great deal closing today at the Villages.

The problem is, we still have a number of buyers here on Island and scheduled to visit over the next few months, and less and less to show them!

Villages at Mauna Lani

The appeal of the Villages at Mauna Lani: large lanai with pocket doors and built in outdoor kitchens

Buyers love the quality Maryl construction and spacious 3-bedroom floorplans with pocket doors opening onto geneous lanai. In 2009, most of the over $1 million condo sales at the Mauna Lani resort were the final developer closeout of the units numbered in the 700s, on the golf course with peeks of ocean view. This year bargains appeared, including short sales and an REO that closed for $1.25 million (and originally sold for $2.4 million). Last week I showed the remaining sub $1 million inventory of 4 condos three times. I was not alone. Two out of the four are under contract! The remainig two should both sell well under asking price. The smaller Lehua floorplan is listed at $795,000 but owners are said to be motivated; the larger Maile floorplan listed at $845,000 is a short sale and based upon the comps the bank should be accepting $100,000 less than this number. (Remember a short sale is sold unfurnished; the Lehua will be furnished).

Fairways at Mauna Lani

The most private Fairways at Mauna Lani units have this golf course view; few are for sale on the golf course

Sales at the Fairways at Mauna Lani were limited to cash buyers for a period, while the homeowners association and developer worked out a dispute over how to correct a small construction issue (drainage from the lanai during the infrequent rainstorms Mauna Lani might experience). Now lenders are financing again, and with prices on the smaller 2 bedroom floorplan having fallen under $400,000 (short sale, unfurnished), the buyers came out of the woodwork. Half of the eight closed sales and both of the units currently in escrow are short sales. However, of the 10 active listings, only one is a short sale and one is an REO. My top picks would be the REO (foreclosure) at $450,000 and the new listing in the next building over, turnkey furnished for sale at $550,000. Both of these are the larger 2-bedroom floorplan on the golf course side of the complex.

Kulalani

Two of the three remaining developer condos for sale at Kulalani have this view of the pool amenity area

The same developer as the Fairways at Mauna Lani across the street, most buildings at Kulalani are essentially the same floorplans. Developer resales have been the name of the game this year (and last) with eight sold this year and one in escrow; as they come to the end of their "standing inventory" they will move into pre-construction sales on their next phase and that means we may see resale units venture onto the market at higher prices. Unless you want to take the risk and have no desire to use your condo in the next couple of years, take advantage of close-out pricing on one of the remaining developer units (they only have 2-bedrooms left, so if you want a 3-bedroom, you'll have to wait or look to the Fairways). All are have asking prices in the low $500,000s but we've negotiated sales under $500,000 with incentives. Remember, the staff in these on-site sales offices work for the developer, and you will always get a better deal with an outside buyers agent representing you!

Ka Milo

Ka Milo paired-style condos feel more like single family homes

In an unusual arrangement, Kulalani and Ka Milo share the amenity area (two pools, workout room and gathering area) between them. Prior to its completion, skepticism over the arrangement probably held back sales. Now that buyers can see how much larger and nicer it is relative to the small pools in other Mauna Lani condo complexes, it is generally seen as a plus.

Ka Milo sales this year took a pause as a potential foreclosure action by the construction lender played out. Sales have resumed on the few built units, and pricing has been released on the next phase. As a result, four out of five remaining developer condos have sold; one resale listed as a short sale is in escrow at competitive pricing. The remaining condo for sale at Ka Milo in developer inventory is a 4-bedroom with 2 masters and 2 smaller bedrooms. Perfect for the larger family, vacation rental, or for a buyer who needs a home office or two, and at $699,000 priced below the most recent 3 bedroom sales.

The only other listings at Ka Milo are both over $1 million. One is a short sale on the golf course side; although a similar unit sold for more in 2009, I wonder whether an appraiser could give an almost $500,000 location premium in today's market. (One of my teammates sold the same floorplan on the other side of the street for $780,000). The other active listing is a pre-construction listing for a detached single family home. At $1,330,000 this is a much more interesting proposition for the buyer in this price point.

A hui hou,

Beth