We'll it looks like trouble is brewing in other places beside our little piece of paradise we call the Beach Villas at Ko Olina.
Trump Waikiki buyers sued Irongate yesterday within an hour of each other in two separate suits.
The first suit states that buyers were misled into thinking that Donald Trump played a bigger roll in the development of the property when in fact, he was just leasing his name to the project. The press releases stated that he was co-developer.
The second suit states that the buyers were misled regarding who would be managing the rental program and the rental units. Buyers are afraid that the litigation between Trump and Irongate regarding the Trump Baja debacle will spill over into the Trump Waikiki project. This could leave the property unbranded, creating just another generic hotel property in Waikiki.
If Trump was truely a co-developer, he wouldn't be able to just pull out of the project and walk away.
I remember looking at the property early on when it was not even called Trump Waikiki. Interest levels were very low and didn't increase until Trump's name was added. So having the Trump name at the project is huge.
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Here at the Beach Villas, we don't have that problem as we are unbranded with no associated national brand name. So we're doing things the old fashioned, albeit the slower paced way by earning our reputation, one owner at a time, one guest at a time and I'm happy to report that after being open for a little over a year that we are now the highest rated hotel accommodations in Ko Olina according to Trip Advisor.
So cudo's to the homeowners and all of the top notch staff at our property for making our place #1 without a lot of fanfair with just some plain old fashion hard work.
Although I didn't realise it at the time (we had deposits in to purchase at Trump Waikiki) it is a huge advantage to be one of only three hotel properties in Ko Olina. Of course with Disney opening in 2011 and other properties to follow, this will change but I'll take five or six hotels in Ko Olina compared to hundreds in Waikiki.
Over here in Ko Olina, "We don't need no stinkin brand names", guests love our property and enjoy the great value and high end luxury it provides. We're not cheap but you get a lot of bang for your buck, a ton. Some of our guests have started to return for their second and/or third visits, a great validation to the very high quality of our property and our outstanding staff.
Branding our property would increase prices which would translate into higher revenue for the national brand, less revenue in the homeowners pockets and higher prices to guests. Who needs that? Better to join an organization such as Leading Small Hotels of the World.
So good by Trump Waikiki and good buy Beach Villas at Ko Olina.
Honolulu Advertiser Article: Buyers sue Trump Waikiki
KHON2 News Story: Lawsuit Filed Against Trump Tower Waikiki Developer
Pacific Business News Article: Trump Waikiki buyers sue developer
New York Times: Suit Claims Firm Misstated Trump's Ties to Project
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Alfred Harding is a licensed Hawaii real estate professional providing clients with insight and knowledge as it relates to the Beach Villas at Ko Olina on Oahu, Hawaii. He is also a homeowner at the project and operates an active rental program.
You can also find him blogging about the resort at: Beach Villa Resort Blog and on Facebook Beach Villas at Ko Olina Blog. Vacation Villa Reservations available at: Beach Villa Resort Reservations.
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If you are thinking about purchasing at the Final Sales Event at the Beach Villas, please allow me to represent you as your buyers agent on selection day. There is no cost to you and your purchase price is exactly the same. However, understanding all of the nuances along with the good and the bad will arm you with the ability to make an educated decision.
(All of the thoughts expressed in this blog are my own personal opinion, they are no guarantee that you will achieve similar results, it's just me sharing my own experiences and what has happened in my own situation. I cannot know what will happen in the future.)
First things first, I think it's a 50/50 shot that the final sales event will happen by the planned end of July date. With everything up in the air, I don't see how the sale could happen by then. I could be wrong, but that's my thought. If it were me, I would be using frequent flier miles for those tickets so that you could change them at a moments notice. I'll update here if anything changes.
Secondly, if things turn out the way I think they may, those of you who have made a reservation and are in line to purchase are going to get a bargain and a good one at that. If you do not have a reservation and are inclined to do so after reading my blog entries, please email me or give me a call. I'll explain what I mean.
The situation:
As you know from past blog entries, the current disagreement pertains to who will own the common areas of our property including the pools, grounds, parking lots, beach bar, fitness center, etc. once the final sale is completed and Centex is no longer invoved with the project.
The homeowners believe that they should own the common areas via their homeowners association (Centex is not offering all of the areas, but some is better than none) as they paid good money to purchase their property, Mr. Stone believes that he should own the common areas at the Beach Villas as the master developer overseeing the entire Ko Olina Resort where the Beach Villas reside. So Centex is stuck in the middle.
As another homeowner put it "Centex is the meat in the sandwich with the homeowners and Mr. Stone being the bread on opposite sides."
This uncertanty to who will own and control the majority of our land assets at the property along with the economic down turn combined have chased away buyers and depressed property values to below what they are worth even in todays economy.
Reading through the documents, you'll notice that the master developer was in line to purchase around 35 units or all of the remaining villas that he could pick up for around $700,000.00 - $800,000.00 and below. So at some price point, even the master developer was ready with a rather large check book to make a sizable purchase here. This is how he picked up the original Ko Olina Resort for cents on the dollar.
If your sales person told you in the past that all of the lower priced units were gone, I read between the lines that Mr. Stone had them locked up from the get go with no chance for the rest of us. If your sales person came back later and said buyers were moving up to higher priced units and that lower priced units would possibly become available once again, I read between the lines that it wasn't other single buyers that were moving up but simply that Mr. Stone lost his right to purchase those units.
The good news is that through the homeowner's attorneys efforts, Centex has decided to turn over some of the common areas to the homeowners through what they believe is their legal right. They have asked the homeowners to put it to a vote and are looking for a 75% approval rating by the homeowners to make sure that all homeowners feel that this is in their best interest.
So if things don't go Mr. Stone's way, the opportunity to purchase a bargain priced villa becomes ours, our gain for those who can step up and not be afraid to swim in the opposite direction of everyone else. That's how fortunes are made folks.
In the interim, Mr. Stone has filed a lawsuit against Centex and has also threatened the homeowners with a lawsuit if they proceed with and approve the vote. Some of the homeowners have expressed that this bullying is what they feared would happen once Centex completed the final sale and were no longer the balance of power.
Centex as per their attached letter has agreed to protect the homeowners from Mr. Stone regarding this specific vote issue and has also agreed to pay any damages that resulted from a lawsuit regarding the vote. This will keep the voting process as pure as possible by eliminating the fear and intimidation factor.
I believe we will have a positive outcome and that this will improve our property values for current owners. Future owners will have a greater discount and with ownership of the grounds, you should see a good return on your investment.
In addition, if things do not work out and Mr. Stone receives our common areas at a future date, I believe that we have some additional legal remedies that will give us some additional options.
The players:
Jeff Stone - Master Developer of the Ko Olina Resort - Click here to view the June 20th letter sent to Beach Villa Homeowners from Mr. Jeff Stone of Ko Olina Development. (pdf file format)
Centex Destination Properties - Developer of the Beach Villas at Ko Olina, a residential property located within the Ko Olina Resort - Click here to view the June 24th letter sent to Beach Villa Homeowners from Mr. Bruce Sloan of Centex Destination Properties, Hawaii. (pdf file format)
Homeowners - People who have purchased a condominium at the Beach Villas at Ko Olina - Click here to view the June 23rd letter sent to Beach Villa Homeowners from Mr. Sidney Kanazawa of McGuireWoods, attorney representing the homeowners. (pdf file format)
Feel free to give me a call if you wish to explore the minutia that are our legal documents. Remember, I'm not an attorney.
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Alfred Harding is a licensed Hawaii real estate professional providing clients with insight and knowledge as it relates to the Beach Villas at Ko Olina on Oahu, Hawaii. He is also a homeowner at the project and operates an active rental program.
You can also find him blogging about the resort at: Beach Villa Resort Blog and on Facebook Beach Villas at Ko Olina Blog. Vacation Villa Reservations available at: Beach Villa Resort Reservations.
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I can assist you in evaluating the risk at hand. Is this is a viable opportunity?
If you are thinking about purchasing at the Final Sales Event at the Beach Villas, please allow me to represent you as your buyers agent on selection day. There is no cost to you and your purchase price is exactly the same. We can discuss your goals to see if this is a good fit as a retirement or vacation home, as a primary residence or if it meets your investment and cash flow goals or any combination of the three.
With all of my above statements, please look at the enclosed documents to get the information straight from the horses mouth. Any errors or omissions are completely accidental. I am enclosing the source documents for reference. As always, these are my own opinions.
Just received word that the June 6th & 7th sales event has been postponed until July 25th. Updated: now postponed until September, 2009. I don't have any additional information at this time as to the why's or what for's. Stay Tuned...
Thought I would let everyone know in case you had already booked your plane tickets and hotel reservations as the date is fast approaching. We are currently at the property and I will be here for the next three weeks if anyone has any questions and/or would like to get together.
We spent Memorial Day BBQing out by the Beach Bar and enjoyed a magnificent sunset along with our Ono Grinds "Delicious Food" and time with our ohana "family" from both the mainland and here in Hawaii.
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Alfred Harding is a licensed Hawaii real estate professional providing clients with insight and knowledge as it relates to the Beach Villas at Ko Olina on Oahu, Hawaii. He is also a homeowner at the project and operates an active rental program.
You can also find him blogging about the resort at: Beach Villa Resort Blog and on Facebook Beach Villas at Ko Olina Blog . Vacation Villa Reservations available at: Beach Villa Resort Reservations .
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If you are thinking about purchasing at the Final Sales Event at the Beach Villas, please allow me to represent you as your buyers agent on selection day. There is no cost to you and your purchase price is exactly the same. However, the villa you select and how much you pay for it will make a big difference in your profitability; both from an appreciation standpoint and if renting, covering expenses by "getting heads in beds" .
(All of the thoughts expressed in this blog are my own personal opinion, they are no guarantee that you will achieve similar results, it's just me sharing my own experiences and what has happened in my own situation. I cannot know what will happen in the future.)
24 hours a day, 7 days a week working continuously to get the word out about our beautiful slice of paradise, The Beach Villas on Honu Lagoon, Ko Olina, Oahu Hawaii
Once we have captured a potential guests interest, we need to follow up quickly with high quality photos, videos, panorama shots, maps and other information to makes the guest comfortable that we are the best fit for their vacation accommodations.
Once the guest has reserved, a little pre arrival pampering is in order along with the appropriate thank you's, once the guest has completed their stay.
Of course the most important part of the process is the guest stay and ensuring that our guests are happy and are having the time of their life. This requires anticipating the guests needs, (even ones they may not have thought about) and then providing them with more than they asked for. This is what makes a stay memorable and keeps them coming back.
It's all about the guest experience and giving our guests a terrific and memorable time through the entire process with a what can we do for you and it's our pleasure attitude.
Enjoy our latest marketing piece to get the word out!
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Alfred Harding is a licensed Hawaii real estate professional providing clients with insight and knowledge as it relates to the Beach Villas at Ko Olina on Oahu, Hawaii. He is also a homeowner at the project and operates an active rental program.
You can also find him blogging about the resort at: Beach Villa Resort Blog and on Facebook Beach Villas at Ko Olina Blog. Vacation Villa Reservations available at: Beach Villa Resort Reservations.
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If you are thinking about purchasing at the Final Sales Event at the Beach Villas, please allow me to represent you as your buyers agent on selection day. There is no cost to you and your purchase price is exactly the same. However, the villa you select and how much you pay for it will make a big difference in your profitability; both from an appreciation standpoint and if renting, covering expenses by "getting heads in beds".
(All of the thoughts expressed in this blog are my own personal opinion, they are no guarantee that you will achieve similar results, it's just me sharing my own experiences and what has happened in my own situation. I cannot know what will happen in the future.)
As a licensed real estate professional, I have a responsibility to share all of the pro's and con's of purchasing property here in Ko Olina and at the Beach Villas at Ko Olina. Sometimes, this means I may loose making a sale.
An issue has come up recently regarding purchasing at the Beach Villas at Ko Olina. I have enclosed a copy of the email I received plus discussions from homeowners who are on both sides of the issue. I have also attached the legal document that brought this to a head.
In a nutshell, on September of 2008, a document was modified to provide the developer of the Ko Olina Resort, the option to purchase our common areas such as our pools, workout center, etc. for $1.00 from the property developer, Centex. Some of the homeowners are concerned that this will further devalue each individual condo as most of the land at our property is contained in the common areas.
The counterpoint to this is that in order to maintain the overall look and feel of the overall Ko Olina Resort, the master developer (KOD) should own the common areas to keep everything uniform.
Depending on your outlook, this may or may not be important to you but the following information will allow you to make an informed decision. Feel free to email and/or call me with questions.
Real Estate Professionals who read this blog and have experience with Resort Vacation Condo Projects, I would appreciate some input as to your experiences as far as who typically owns the condo common areas such as the pools, lobby, workout center, beach bar, etc. The homeowners association, the developer or the owner of the overall resort where the property is constructed. Mahalo!
Here is a copy of the email I received on May 2nd, 2009:
To Fellow Beach Villa Owners,
When most of you were shown the beautiful pools, gardens, member lounge, gym and other amenities of The Beach Villas by the Centex sales force you weren’t told that you may never own them. Our legal documents are different from the majority of the condominiums in the United States. In our case the pools, gardens, member lounge, gym and other amenities are either part of or attached to six commercial apartments presently owned by Centex. In almost all condominium developments when the last unit is sold these amenities are turned over to the condominium association as they have been paid for with part of the purchase price of the condominium units. This may not be true at The Beach Villas.
From Concerned Beach Villa Owners
Here is a excerpt from an email I received on May 3rd, 2009:
It is my understanding that Mr Stone (President of the Ko Olina Resort) came to the board meeting on Friday and gave a wonderful presentation on all the great things he was going to do at Ko Olina, but never answered any of our concerns. At this time Bruce (President of Centex Hawaii) is only telling people in so many words we would never let anything happen to you. As xxxxx and I can tell you he can be very convincing. I think we should try and contact all owners with the facts and the fact that Mr Stone will try to enforce the Sept 2, 2008 Right of first refusal and will give nothing in writing to say what he will do in regard to the issues raised in our letter.
Alfred's Note:
The wording in the purchase agreement states than verbal promises are null and void and that it must be in writing to be valid. However, the homeowners are only receiving verbal assurances that everything will be fine and to not worry about this which is completely counter to the wording in the legal documents.
Documents:
Click here to view the Sept. 2008 Agreement between Centex and the Ko Olina Resort. (pdf file format)
Click here to read why ownership of the common areas is a big deal to homeowners. (pdf file format)
Click here to read why ownership of the common areas is not a big deal to homeowners. (pdf file format)
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Alfred Harding is a licensed Hawaii real estate professional providing clients with insight and knowledge as it relates to the Beach Villas at Ko Olina on Oahu, Hawaii. He is also a homeowner at the project and operates an active rental program.
You can also find him blogging about the resort at: Beach Villa Resort Blog and on Facebook. Vacation Villa Reservations available at: Beach Villa Resort Reservations.
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If you are thinking about purchasing at the Final Sales Event at the Beach Villas, please allow me to represent you as your buyers agent on selection day. There is no cost to you and your purchase price is exactly the same. However, the villa you select and how much you pay for it will make a big difference in your profitability; both from an appreciation standpoint and if renting, covering expenses by "getting heads in beds".
(All of the thoughts expressed in this blog are my own personal opinion, they are no guarantee that you will achieve similar results, it's just me sharing my own experiences and what has happened in my own situation. I cannot know what will happen in the future.)
Everything related to the Beach Villas at Ko Olina. Licensed Hawaii Real Estate Professional, Homeowner of multiple units at the Beach Villas and owner of a successful rental program at the property.
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