Japanese Billionaire Genshiro Kawamoto has sold a total of 27 homes on Kahala Avenue and four other parcels of land on Windward Oahu and on Maui to local developer Alexander & Baldwin for a total of $98 million bulk sale. According to property tax records, Kawamoto purchased the Kahala houses for a total of $177 million between 2003 and 2011. In 2006, Kawamoto created what he called the "Kahala Avenue Mission" and rented out nine homes to nine Native Hawaiian families for $150 to $200 per month. When this lead to complaints about housing discrimination, Kawamoto decided to provide rent for Hawaiian families for free in 2007. Kawamoto then transformed several of the other properties into art and garden museums, and demolished several more houses for no apparent reason. This significantly frustrated his Kahala neighbors who felt that Kawamoto's actions were depreciating the value of their properties. Kawamoto was arrested in Japan in March 2013 for suspected tax evasion. According to prosecutors, Kawamoto's Marugen company evaded paying about $9 million in corporate taxes.
Alexander & Baldwin has stated that they plan to clean up and refurbish the houses and vacant lots, and will be reselling the parcels to interested buyers. For tax purposes, the city values the 27 properties at $118 million.
Source: Honolulu Star Advertiser, 9-11-2013, 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
