Executive Centre in Downtown Honolulu is a leasehold building that hasn't had many sales since the market started turning a little over five years ago. Considering there are 510 units in the building, not much has been moving.

We are proud to say that we represented the Sellers on 3 out of the last 4 sales in Executive Centre:

• September 11, 2012 - #1212 SOLD - Hawaii Life Real Estate Brokers and I represented the Seller
• September 14, 2012 - #1004 SOLD by another firm
• October 29, 2012 - #504 SOLD - Hawaii Life Real Estate Brokers' Caron Ling represented the Seller
• October 31, 2012 - #805 SOLD - Hawaii Life Real Estate Brokers and I represented the Seller

If you own a unit at Executive Centre and want to learn more about how we list Property Properly, feel free to contact me for more information. 

If you've driven down Kahala Ave. lately, you may have noticed several oceanfront parcels where statues have been erected over the last few weeks.

Statues at the end of Kahala Ave. on the Old Hemmeter Estate

Kahala Avenue has been know to fetch some incredible real estate prices over the years as it is know as one of the luxury real estate meccas in Hawaii. With number that have sold above $20 million over the years, many historic residences have been torn down in recent years. The one above is the site of the old Hemmeter Estate that sold for over $12 million in 2005. There are others undergoing similar transformations and are hard to miss. For better or worse, beauty is in the eye of the beholder. However many local residents have started to complain. 

Although Kahala still has a reputation for luxury real estate, it will be interesting to see where this goes... In the past 6 months, there have been 2 homes that have sold on Kahala Ave. for $3.2 and $4.4 million. Both were on the mountain side of the street. Although there aren't many oceanfront homes currently on the market in Kahala, most of the inventory is now owned by the same owner transforming these once pristine estates like the ones above. Only time will tell..

As of today, there are less than 45 new construction homes at Ka Makana in their 20, 30, 40 ad 50 series.

Come and get your Ka Makana Home before they are all gone...

The majority of this remaining inventory of new homes to be built are not in MLS, so feel free to contact me if you have any questions. If you need something immediately, you can always consider a resale at either Hoakalei or Ocean Pointe in Ewa Beach.

Now that the summer of 2012 is behind us, we can look back on where the action was on Gold Coast sales.

The sea wall fronting Tropic Seas on Honolulu's Gold Coast at Diamond Head

There were 10 transactions that took palce this summer, just over three a month. While this isn't considered "big volume", it is a healthy amount of activity given that there is very little inventory on the market. The Tropic Seas led the way with 3 transactions closed, followed by the Coral Strand and Sans Souci with 2 sales each. The Castle Surf, Colony Surf and the Diamond Head Beach Hotel each had 1 transaction take place. What was interesting to see was that 30% (3 out of 10) of the sales were Leasehold units.

The highest sale was #608 at the Tropic Seas, which was a 2 bed, 2 bath unit that went for $1,400,000. The lowest was #1006 at Sans Souci, which was a studio that went for $195,000. Now that the summer is behind us, it will be interesting to see what this fall holds. It's traditinally a slower time of year on the Gold Coast, however it may be a great time to be buyer while there's less competition. If you're a seller, you may have missed the summer boat... or have you? More buyers crossed the path along Tropic Seas this summer than any other building. Which one is next?

We just wrapped up the 2nd installment of the Worth Shop at the Modern Honolulu, situated between the Ilikai Apts. and Ilikai Marina. The event was a great hit as luxury brokers from across the state gathered to discuss what's happening in the luxury market.

Cocktail after party following the Worth Shop at the Modern Honolulu

There were lots of great speakers and panelists that shared some great content. From Oahu market statistics, to finance, to architecture, to top producing luxury brokers, to marketing, to luxury auctions, to demographic and design experts there was a lot of information flowing . The format was something fresh and different from your typical real estate education scene. Now that we've got two successful events under our belt on the Big Island (Four Seasons Hualalai earlier this year) and the recent one here on Oahu, I'm guessing the next one could possibly take place on Maui or Kauai. Stay tuned... 

The Kahala Beach Apartments is situated on one of the most prime pieces of real estate on Oahu. Plain and simle, it is hard to compete with oceanfront land in Kahala. Some of the highest luxury sales on the island in recent history took place on this same strip of beach.

View of Kahala Beach Apartments seen from the Kahala Hotel with Diamond Head in the distance

As of today, there are 8 available listings at the Kahala Beach Apartments, with an additional 5 units under contract. There have been  half a dozen sales over the past 6 months that have ranged from $125,000 to $225,000. Why such low prices you may ask for such prime real estate? The reason is all of the units there are leasehold. 

Leasehold ownership isn't the worst thing in the world. The "catch" with this particular project however are the carrying costs. As of today, the monthly lease rent to the landowner (Bishop Estate) in MLS is over $2200/month for the 2 bed, 2 bath units. In addition, the property taxes are just over $350/month and maint. fees are just over $950/month according to most of the listings in MLS. When you add that all up, it's over $3,500/month (with out a mortgage)!

The lease rent will most likely change in 2017 (ie. most likely go higher) and the lease only runs through 2027. With only 15 years remaining, this is truly a lifestyle play. You can live in one of the best locations on Oahu for a low purchase price, however one may have to ask themselves are the carrying costs and risk of forfeiting your investment in 15 years be worth it? Unfortunately, nobody has a crystal ball and only time will tell...

If you don't have that much risk tolerance and plan to hold on to your investment longer than 15 years out, here are some alternatives:

• Fee Simple Condos in Kahala (these, however will not be oceanfront)
• Fee Simple Condos in Diamond Head
• Fee Simple Condos in Hawaii Kai with similar monthly costs (substituting lease rent for a mortgage)
• Fee Simple Homes in Kahala (if money is not an issue)

Otherwise, if you're ok dropping down a few hundred thousand, carrying over $3500/mo. and the possibiity of turning the keys over in 15 years, I'd be glad to help you with a purchase at the Kahala Beach Apartments. I can also assist you with the sale of one if you don't plan to wait around long enough to find out. Like I said, only time will tell...

If you've ever driven through Hawaii Kai, you'll notice a strip of high rise condos along Hawaii Kai Drive that wrap up towards Hahaione Valley.

High Rise Condos tucked away in the back of Hawaii Kai offer views of the marina

Above, you'll see the prominent strip of high rise condos that are clustered together. They are from left to right, the Commodore, Mauna Luan, Heritage House, Naniwa Gardens and Plaza Hawaii Kai. As you can see, they all have the potential for marina (and ocean) views from the higher floors. None of them however actually front the marina. The only high rise in Hawaii Kai that actually front the marina is the Esplanade off of Lunalilo Home Road.

Over the past year, fee simple sales in the buildings above have ranged from $310,000 for a 1 bedroom at the Heritage House to a $600,000 2 bedroom unit at Plaza Hawaii Kai. If you're considering a condo in one of these buildings or any other in Hawaii Kai, feel free to visit my Hawaii Kai Condo and Townhome page for the latest available listings.

Over the past month, the Diamond Head Ambassador has been getting nice new coat of exterior paint.

Prep work for painting the exterior lanais of the Diamond Head Ambassador

I've been hearing about it over the past 6 months to a year, however progress is finally under way. It was something that was actually budgeted for. Up until seeing the actual paint go on, people were asking me "what color are they going to paint it"? My intuition served correct as the building stuck with the same color scheme, which is timeless...

In addition to the painting, all of the lanais that once had carpet, will no longer have it. It was discovered that carpet traps moisture and was bad for an oceanfront building where spalling can be an issue. My understanding is tile will still be approved for the lanais as long as it is sealed properly. 

Although there's been an inconvenience to owners and residents of the Diamond Head Ambassador, I think everyone will be happy with the new sleek and improved look when pau (finished).

I was at Allure Waikiki this past week meeting a vendor for a client of mine that recently purchased there. As of June 4, 2012, here are the latest developer units that were available:

According to MLS, there have been five sales in the past 6 months. Don't let those numbers fool you however. The majority of the developer units are not entered into MLS, therefore they are not showing up as sales. They are available though on public record and they have been moving through their inventory. If you're interested in purchasing a unit at the Allure Waikiki, feel free to contact me for more information.