Find Foreclosures in Honolulu by Considering Condos
Find foreclosures in Honolulu by considering foreclosed condos as the city’s condo market slowed despite sharp reduction in condo prices.
One of the condo complexes that faced financial difficulties because of low condo sales is the 492-unit Moana Vista condo complex. It is set to be sold off in an auction in the last week of September.
The condo project stopped construction in November last year when the pace of sales did not step up. The complex has been 40-percent completed when construction stopped. Developer KC Rainbow II LLC negotiated with San Diego-based developer OliverMcMillan to acquire the project, but negotiations fell through.
In April, general contracting firm Hawaiian Dredging Construction Co. filed the foreclosure case after the developer failed to pay the $29.5 million already spent for building the Moana Vista. There are also other subcontractors owed by KC Rainbow, but the loans were substantially less than that owed to Hawaiian Dredging.
According to Bill Wilson, president of Hawaiian Dredging, it is unfortunate that people can find foreclosures in projects being built by Hawaiian Dredging. He said he saw how KC Rainbow tried its best to find a lender willing to provide new financing.
Allen Leong, project director for KC Rainbow, said KC Rainbow provided most of the approximately $65 million spent for the project. He added KC Rainbow is headed by Fred Chan, a graduate of the University of Hawaii and high-tech businessman who successfully put up the nearby tower Moana Pacific.
Contractor Hawaiian Dredging said that it would take around $100 million more, in addition to the $29.5 million it already spent for construction, to complete the 46-story condo tower.
When Moana Vista was being planned more than 3 years ago, it was a hot project. In May 2006, 466 excited potential condo buyers competed for the right to buy and own one of the planned 192 owner-occupied units at prices ranging from $425,000 up to $850,000. Almost all the other remaining units were reserved by investors.
But as the housing market weakened, buyers canceled their reservations. Despite a last-ditch effort to rejuvenate sales by slashing prices by 20 percent last year, the developer failed to gather enough reservations to fund another $100 million loan to continue the construction.
KC Rainbow executive Leong said all buyers who made reservations will be given full refunds. In time, these buyers can use their deposit refunds to find foreclosures to buy in the same condo tower.
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