Lantern Asset Management has purchased the Ritz-Carlton Condominium and time-share resort on the island of Maui in a foreclosure proceeding for a total of $100 million. The 24-acre oceanfront property is the home of nine low-rise condominium structures and was built by a partnership between the Maui Land & Pineapple Company, the Ritz-Carlton Hotel Company, and Exclusive Resorts LLC in 2007 for $355 million. However, due to the recession and problems in the financial market, Lehman Brothers, who was the project’s main lender, filed for bankruptcy in 2008. This move significantly halted sales and created additional challenges for the developer.
In June of 2012, a group of lenders who replaced Lehman Brothers as the main lender filed a foreclosure lawsuit against the developer for $300 million owed to them. In addition, in June of 2012 a group of condominium owners filed a lawsuit against the developer for breaching their fiduciary duties. In July of 2012, the Ritz-Carlton announced they would no longer be managing the property due to the fact that operating costs were not being sufficiently funded. Currently, only 28 out of the 84 condominiums have been sold and only 177 of the 744 interests in the time-share units have been sold. The property is now known as the Residences at Kapalua Bay and is under the new management by the Timbers Resorts since the beginning of this year.
Source: Honolulu Star Advertiser, 2-1-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
