A lender holding mortgages on parts of the Ilikai hotel owned by local developer Brian Anderson is acquiring the property, after no one was willing to outbid the lender at a court hearing this morning.

Lender iStar Financial at a preliminary foreclosure auction last month bid $35 million for 203 condominium units in the iconic Waikiki hotel and $15 million for 16 commercial units that include the front desk, restaurant space, retail space, office space, parking and some small meeting rooms.
A local businessman made one bid on the commercial space for $15.75 million, but iStar bid $16 million to hold on to the asset.
According to the foreclosure lawsuit filed by iStar, the lender was owed about $72.7 million at the end of October on loans defaulted upon by Anderson. Under bidding rules, iStar could have bid up to that amount in credit against its claim.
Circuit Judge Karen Blondin confirmed the lender as the high bidder.
The purchase by iStar is scheduled to close within 35 days of a sale order entered by the judge, which is expected shortly.