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The Honolulu Advertiser
Posted on: Monday, February 8, 2010

Makena Beach & Golf Resort to be sold at foreclosure auction

Advertiser Staff

The Makena Beach and Golf Resort on Maui is scheduled to be sold at a foreclosure auction in April, according to a ruling by a Maui Circuit Court judge.

Judge Shackley Raffetto entered an order of foreclosure and appointed Honolulu real estate developer and broker Chris Lau as commissioner to sell the property, formerly known as the Maui Prince Hotel.
While ownership of the property will change hands, no one expects any changes for employees, visitors and guests, Lau said.
“My job, ordered by the court, is to transition ownership since the current owners could not pay the mortgage. I expect the resort to operate 'business as usual' throughout this process," Lau said in a news release.
The resort has been owned since July of 2007 by a joint venture between affiliates of Everett Dowling and a Morgan Stanley real estate fund. That venture borrowed $192.5 million of mortgage debt and an additional $227 million of debt that was not secured by the mortgage.
Wells Fargo, as trustee for the mortgage debt, initiated foreclosure in August of 2009 after the venture defaulted on its mortgage and other debt obligations. To oversee resort operations and transition to new management, court-appointed receiver Miles Furutani will remain in possession of the resort until closing with the new owner.