Posted on: Tuesday, October 26, 2004
Kaua'i hotel's buyer to sell its 200 units
By Andrew Gomes
Advertiser Staff Writer
Local real-estate investor Brian Anderson has completed his purchase of Kaua'i's Islander on the Beach hotel and is offering the property's 200 units for sale to individual buyers.
Anderson's Puluwai LLC last week bought the leasehold interest in the hotel for $18.3 million from part-time Kaua'i residents Steven and Gloria Cohen of New York, according to the sellers' Honolulu-based broker, Avalon Development & Consulting.
The fee interest in the property was purchased from Niu Pia Farms Ltd. for an undisclosed price.
Puluwai is working on a major renovation of the low-rise complex in Kapa'a's Coconut Plantation district near Lihu'e Airport, and has listed units for sale at prices between $210,000 and $570,000 each.
The project joins the trend of older Hawai'i hotels being bought, renovated and resold by the room to many investors in what is known as "condotel" conversions.
Barry Kaplan, project broker with Hawaiian Island Homes Ltd., said 120 of the 200 units have been reserved by prospective buyers.
"It's been good," he said of the interest from a 60-40 mix of buyers from the Mainland and Hawai'i, respectively.
Puluwai is spending roughly $7 million to upgrade the hotel, and expects to finish renovations on the first of eight buildings by the end of November, followed by about one building a month.
The hotel, managed by Aston Hotels & Resorts, is remaining open during renovation work.
The Islander previously was acquired at a foreclosure auction in 1997 by an affiliate of mortgage holder First Commercial Corp. The Cohens and partners including Kaua'i real-estate agent Terry Kamen bought the hotel two years later for about $5 million, made some upgrades and hired Aston as manager.
Anderson, a Big Island resident and son of restaurateur and former state legislator D.G. "Andy" Anderson, is a real-estate investor who recently purchased the W HonoluluiDiamond Head hotel in Waikiki. He is expected to make some improvements to the W but no immediate major operational changes to the 50-room boutique hotel, which caters to business travelers under Starwood Hotels & Resorts management.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
