During summer the surf action is mostly on the south shore of Oahu. We've had some great swells so far. Overhead sets, light winds and lots of fun!
Roy Vierra of RV's Surf Shop gave me a call and talked about the surf he's been catching at Ala Moana Bowls and Old Man's, including some overhead barrels! Roy's a full sized guy so catching a barrel is really something, in other words we're getting some great surf this summer!
Roy asked if I've been catching some waves. Yeah, there's been some fun stuff at Concessions at Ala Moana Beach Park. I meet my brother in law first thing in the morning and then scoot off to work. Diamond Head is another favorite as long as the wind is not too strong.
Roy said the summer swells are bringing customers to his shop and board sales are doing well. RV's has some great deals on new boards as well as used boards. Stop by and check it out sometime. The staff is really friendly. Besides Roy, there's Sanae, Kapena, Mike and a few others. RV's sells surf-related equipment too, including leashes, wax, fins and traction pads.
South Shore Surf - where to go?
We're talking about Waikiki, Diamond Head, Ala Moana, Black Point, and Portlock. Ewa and Makaha are on the west side of the island, they still catch the summer swells.
If you want to learn how to surf, don't be shy, take a lesson! It will save you time, frustration and it's safer than trying to learn on your own. Roy is a surf instructor, give him a call!
RV's Ocean is located at 3348 Cambell Avenue in Kapahulu. They're open from 11 a.m. to 5:30 p.m. daily. Call 732-7137 to schedule a lesson of for driving directions.
Mike Bates
On June 30th 2009, Iolani School announced that it purchase a large parcel of leasehold land owned by Lum Yip Kee Ltd. and Lum Chang Tai Inc. The price - $23 million dollars.
The highlighted area below shows the property purchased by Iolani School. Map courtesy of Google Maps.
The land consists of approxmately 21 properties situated on a block of land in a prime area of Honolulu. It's bordered by Date and Laau Streets, near the Ala Wai Golf Course and Kapiolani Blvd. Nearby neighborhoods include Waikiki, Kaimuki and Kapahulu.
The purchase includes a private road (Laau Street), four vacant lots, two individually-owned apartment buildings and nine coop buildings - Iolani Banyan, Lani Home, Laau Gardens, Iolani Gardens, Princess Anne Apartments, Canal House, Hale Laau, Hale Laau II, and Diana Apartments.
The lessors are selling the property in fee simple and are not offering the fee to current lessees. Many of the lessees are owner occupants.
Leases expire in early December, 2012. That leaves three years and several months for current lessees to use their properties or sell them. Iolani School has indicated that it will convert the area to other uses in a gradual manner. This may mean that occupants will have a chance to extend their leases under the new lessor.
Obviously, many lessees were hoping to see the fee offered on the units they purchased. It's not clear whether the purchase complies with section 514-C2 of Hawaii State Law.
§514C-2 Right of first refusal. When the leased fee interest in land under a condominium project or cooperative project or any part thereof is to be sold to any party other than the association of owners or the cooperative housing corporation, the seller shall first provide the board of directors of the association of owners or the cooperative housing corporation with written notice delivered or mailed by registered or certified mail, return receipt requested, postage prepaid, to any two of the president, vice-president, or managing agent (if any), of its intent to sell that interest, together with a complete and correct copy of the purchaser's written offer, which offer shall contain the full and complete terms thereof. The association of owners or cooperative housing corporation shall have a right of first refusal to purchase that leased fee interest for the same price as is contained in the written purchase offer. [L 1988, c 298, pt of §1; am L 2008, c 28, §33]
There may be hope yet for lessees on Date and Laau Streets. I imagine some of the lessees are going to start making some noise about getting their first right of refusal to buy these properties. This could be in interesting show! It's a prime area for affordable living in town, close to the beaches and Waikiki. In recent years, lease prices of properties in the area have been in the $20,000 - $50,000 range, making them good investments for owner occupants as well as investors.
Aloha, Mike Bates
This year's liveable city ratings have been published by Monocle Magazine. Honolulu ranks first in the United States! Many Hawaii residents have known it for a long time, it's still nice to hear it from another source though!
The top city worldwide was Zurich, Switzerland. Honolulu is 11th worldwide.
Monocle Magazine noted Honolulu has a "combination of big-city excitement and natural beauty."
Here's a photo of the shoreline along Kahala and into Waialae. Natural beauty is showing every day in Honolulu!
If you're looking for your own piece of paradise in Honolulu or other ares in Hawaii, please contact me!
Aloha, Mike Bates
Today, June 11th is a state holiday in Hawaii. It's Kamehameha Day, celebrating the king who united the Hawaiian Islands under one rule back in 1795.
Since it's a state holiday, most state offices are closed. Many private businesses also observe the day.
- Light traffic this morning.
- Plenty of people at Ala Moana Beach Park.
- Nobody answered the phone at a City and County of Honolulu office I called this morning.
- Nobody answered the phone at a private company I called this morning.
- Honolulu Zoo
- Public Golf Courses, such as Ala Wai, Pali, Makalena, West Loch etc.
Also, metered parking is free in most locations, except for Kalakaua Avenue at Kapiolani Park. I wonder how they decided on that?
Tonight, KGMB Channel 9 will have a TV special at 6:30 p.m. celebrating Hawaii's special lifestyle and culture. Check it out if you're at home!
Aloha, Mike Bates
This week I had two customers inquiring about condo hotel (condotel) units for sale. Both customers are investors, hoping to take advantage of lower prices in Hawaii's weak real estate market.
We looked at several condotel buildings and the buyers decided on the Ala Moana Hotel Condo. This is one of the highest-quality condotels around. In the $100k price range, it is hands down the best.
Here's what we learned as we looked at condotel listings.
These days, lenders are very conservative. There are just a handful of lenders that will make a loan for a condotel unit and those who do will typically require a 40% downpayment!
When room occupancy rates were high and loans were easy to get, prices were higher and investors could get a return on their investment. The Ala Moana Hotel Condo has suffered significant price declines. Units are selling for about 50- 60% of what their owners bought them for a couple of years ago. What happened?
1) Maintenance fees have risen. In late 2005, the 246 square foot units had $386 monthly maintenance fees. Now those units have fees in the $456 - $630 range. Causes for the fee increases include oil prices, which affect electricity costs, and budget revisions to keep the reserve fund at adequate levels.
2) In good times, occupancy rates were 80-90%. These days (May 2009), Ala Moana Hotel Condo is running around 30-40% occupancy. The recession is affecting travel to Hawaii and these unit owners are seeing their monthly revenue fall.
If you're planning to get a loan and buy here, do not expect to have positive cashflow on a monthly basis. In time, occupancy levels will rise and revenue will increase which may result in positive returns.
If you're a cash buyer, your unit can probably break even on cash flow for now.
These days, many investors are selling off assets and moving to cash. When the economy turns around and lending standards change, properties like the Ala Moana Hotel Condo will be more appealing and prices will most likely rise. Personally, I think prices will rise QUICKLY as the economy recovers. Just take a look at what happened in the period after 9/11! We had steady growth for about five years.
Looking for other buying opportunities? Contact Mike and tell us what you're looking for. We'll search the Oahu MLS listings and show you where the price declines are!
Aloha, Mike Bates
Experienced Hawaii real estate agent working full time for his customers. Innovative selling methods and great communication.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
