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The Honolulu Advertiser

Posted on: Wednesday, November 24, 2004

Investors to auction off Waikiki hotel units

By Andrew Gomes
Advertiser Staff Writer

Two investors who bought 10 floors of the former Ohana Ala Wai Towers hotel believe Hawai'i's real-estate market is so strong that investors will bid up prices to own a piece of the Waikiki condominium hotel.

The sellers plan to hold an auction next month enticing prospective buyers to bid up prices for 32 leasehold units above a $99,000 minimum bid.

"Every buyer should have an equal opportunity to be the high bidder," said Jack Tyrrell, a broker with Sterman Realty representing the sellers, Patrick Brent and Michael Dailey.

Dailey and Brent bought 10 floors of the 40-story hotel at 1700 Ala Moana in 2002 at prices ranging from roughly $40,000 to $55,000 per unit.

The 136-unit hotel, now known as the Waikiki Marina, was sold by Outrigger Enterprises in 2001 to local developer Peter Savio, who converted the hotel into condos that were sold to investors.

The property is one of several Waikiki hotels that have been sold by the unit as condos over the past few years.

Tyrrell said that demand has so far outstripped supply at other sales that he believes an auction will benefit the sellers.

In the process, a high bidder would be allowed to buy any number of units at the winning bid price. Then bidding would start over, and be repeated until remaining units are sold.