State slashes price on historic home

By Walter Wright
Advertiser Staff Writer

The gates to a fabulous old Nu'uanu residence swung wide last week as the state of Hawai'i staged the first of several open houses in yet another effort to sell the historic five-acre Marks Estate on Old Pali Road.

Upon entering the 73-year-old mansion in Nu'uanu, the visitor is met by a huge room in the main residence. About a dozen interested potential buyers came to check out the property last Friday in preparation for an auction Oct. 30. Bruce Asato • The Honolulu Advertiser

That's not even to mention a mirrored walk-in closet big enough to put two Mililani bedrooms in, and a winding stair from which any daughter would love to throw her wedding bouquet.

Realtors familiar with the area say the two-story, 10,000-square-foot mansion could provide a dream home for an akamai buyer getting in on a little-publicized state auction.

Or it may give a confident investor a chance to snap it up, refurbish a bit, and market it to an international clientele of millionaires looking for a Hawai'i hideaway.

The upset price at a public auction set for Oct. 30 is $1.8 million.

The price and the property attracted more than two dozen people and groups Friday.

"But a number of people said the minimum price we are asking is not bad, so that was encouraging," she said.

The $1.8 million is marked down from the $3.25 million the state sought in March 2000, when it couldn't get a bid.

The state has been trying to sell the property since 1996, when the asking price was $8.4 million.

"We looked at why it didn't sell, and the appraisers that we talked to said it was difficult to determine the market value of something that has an historic preservation restriction," said Mike Amuro, property manager for the State Division of Highways.

The property is listed on both the state and national registers of historic places, which means it cannot be subdivided and must be maintained in a way not to disturb the basic appearance of the structures, Amuro said.

The Territory of Hawai'i acquired the land in 1956 from the Marks Estate to avoid severance damages when it bought parts of the original 17.75-acre property for improvements to Pali Highway and Waokanaka Street.

The 10,000-square-foot mansion, seen here from the rear courtyard, includes on its property a private mountain stream, an acre of front lawn and a swimming pool by a cabana. The upset price is $1.8 million. Bruce Asato • The Honolulu Advertiser

Cooke willed the property to The Academy of Arts, which held title until it sold to A. Lester Marks in 1945. After a long legal fight, Marks sold portions of the land to the Territory to permit construction of the Pali Highway, planned to relieve traffic on Old Pali Highway.

Even after the sale, Elizabeth Marks remained in residence for many years, applying her skills as a master botanist to develop gardens known for rare and beautiful plants.

State preservationists consider the building "an excellent example of a Hawaiian-style residence" of the era, with its Hawaiian hipped roof, second-story lanais off most bedrooms, and a design suited to the "lavish, opulent entertainment" for which the home was known.

Some of the luxury has faded, and some is hidden behind renovations the state undertook when the building housed a think tank called the Hawaii Institute for Management and Analysis in Government.

But the Australian gumwood bookcases remain, as do the ohia floors, tile fountain, marble fireplace and some sculptured ceilings.

Nancy Metcalf, a Prudential Locations real estate agent who lives in Nu'uanu and specializes in its real estate market, said she had been waiting for the right property to come along since the valley's top recent sale — $1.5 million for a Dowsett area parcel less than half the size of the Marks Estate.

"It is a great space and a wonderful location," she said. "If you took it to the world market, you could very well find someone who would love to be involved in the historical feeling of the estate and in restoring it."

Well-known real estate broker Mary Worrall said renewed occupancy of the house by a family would be the highest and best use, although she guessed there might be groups interested in acquiring it as a meeting center or retreat.

It is unfortunate that the state cannot keep the property, she said, because it will never find another one like it for the price.

Gov. Ben Cayetano said yesterday his administration had looked quite thoroughly at keeping the property, but found it difficult to justify the cost of refurbishing and maintaining it for any state use, especially in view of the historic preservation rules on altering the appearance.

State Highways agent Izumi said she understood the property had been offered to other state agencies, "but no one came forward, or if they did, it didn't pan out. When the property came back to us, we were instructed to proceed with the public auction."

Worrall said buying property in the misty valley might not be a natural for most Mainland buyers, who "all want to be near the ocean."

Hawaiian royalty, by contrast, believed Waikiki to be a nice place to spend the winter, she said, while Nu'uanu was the place to live.

Reach Walter Wright at wwright@honoluluadvertiser.com or 525-8054.