Vanessa Van Voorhis/The Garden Island Wainani at Kiahuna model homes will be auctioned Dec. 28.
PO‘IPU — In this current economic climate, everyone from first-time buyers to investment companies are on the lookout for distressed properties.
Kaua‘i real estate agents say it’s a buyer’s marketplace and those buyers are all bargain hunters.
But the property auctions some major investment firms are holding to capitalize on this environment may not be as straightforward as they seem.
On Oct. 5, international real estate investment firm Kennedy Wilson announced the acquisition of Wainani at Kiahuna, a residential subdivision adjacent to Kiahuna Golf Club in Po‘ipu Beach’s resort area, for the distressed price of $12 million.
“The acquisition was completed through Kennedy Wilson’s Property Fund III, a value-added, opportunistic investment vehicle that targets real estate in the western US and Hawai‘i,” a press release stated.
The firm purchased the subdivision, including six model homes and 63 lots averaging 8,000 square feet, from the developer, who completed construction of the 2,000- to 2,300-square-foot models at the end of 2008 and put them on the market for $1 million to $1.5 million in early 2009.
The rest of the subdivision was never developed and the model homes never sold.
On Dec. 28 at the Grand Hyatt Kaua‘i Resort and Spa, Kennedy Wilson will auction the six move-in ready, three-bedroom homes. The bidding will start at $450,000 to $595,000.
However, this is not an “absolute auction.” An absolute auction means the highest bidder acquires the item being auctioned irrespective of bid amount, and there is no reserve price below which it will not be sold.
Kennedy Wilson’s auctions typically use an unpublished reserve price, which allows them to refuse the highest bidder. The starting bid price is not the reserve price.
For instance, at the firm’s recent auction of condominiums within the John Ross building in Portland, Ore., the winning bidder’s price averaged approximately 150 percent of the starting bid, news reports show.
Reserve-price auctions are an effective low- to no-risk marketing vehicle. It allows a seller to aggressively market the sale of a property as an event, tap into the bargain-hunting psychology of the marketplace, pool a group of pre-qualified buyers into one place on one day and have them compete against one another, while reserving the right to decline the highest bid if it doesn’t meet expectations.
The day prior to the auction, Kennedy Wilson will offer registered bidders a free “How to Buy at Auction” training seminar to rehearse bidding strategies and find out how to pre-qualify for financing.
The firm’s representatives said it is corporate policy not to disclose the number of bidders registered for a given auction. Bidders unable to attend the auction in person can participate via live Internet online bidding with real-time audio and video.
Assisting Kennedy Wilson’s marketing efforts, Kaua‘i High School girls basketball team members spent a hot Hawaiian afternoon Sunday standing by roadsides in Po‘ipu and Koloa holding up signs advertising the auction and enthusiastically waving to passers-by.
The girls volunteered their Saturdays and Sundays for three weeks in a row after the company offered the team a $750 sponsorship. The coach says they will use the money to buy gym shoes.
As for the remaining 63 lots, Kennedy Wilson Auction Group President Rhett Winchell said, “Within the Wainani at Po‘ipu development, the seller anticipates that the lots will either be sold individually or in bulk to a home builder.
“Future homes constructed on the lots will be required to comply with the design guidelines as set forth in the Wainani at Po‘ipu Design Review Requirements and governed by the Declaration of Restrictive Covenants and Restrictions.”
The kitchens of Seville Row feature stainless steel appliances. Six of these row homes will be on the auction block Dec. 12 at Holiday Inn-Wilsonville.
Six row homes at Seville Row and two single-family detached homes in the Les Bois Collection, all located in Villebois, will be auctioned on Sunday, Dec. 12. Bids start at $175,000 on properties previously priced up to $369,000.
The auction begins at 1 p.m. at Holiday Inn-Wilsonville, 25425 S.W. 95th Ave., Wilsonville. Registered participants should arrive no later than noon for the auction, which will last approximately one hour.
“Sustainable communities like Villebois Village Center put a premium on quality of life, healthy recreation and social interaction,” said Rhett Winchell, president of Beverly Hills, Calif.-based Kennedy Wilson Auction Group. “On Dec. 12, Kennedy Wilson’s proven auction format will enable a select few lucky bidders to gain entry to the modern village lifestyle at closeout pricing.”
Six three-story, two-bedroom row homes at Seville Rows provide between 2,005 to 2,490 square feet of living space. Gourmet kitchens, great rooms and dining nooks enhance livability, which include hardwood floors and stainless steel appliances. There are covered multi-level decks and two-car garages.
The pair of single-family, detached homes at the Les Bois Collection offer two- to three-bedrooms and 2.5 baths in a loft-style design with up to 2,017 square feet of living space. Each home includes its own garage, a private patio and a landscaped, low-maintenance yard.
Successful bidders at the Villebois Village Center auction can choose from a range of financing programs offered by MetLife Home Loans. Auction day purchasers are also eligible for a special incentive. Buyers who obtain financing through Met Life Home Loans, and who close escrow within 45 calendar days of the auction, will be credited $1,000 toward non-recurring closing costs (based on lender guidelines) by the seller at the close of escrow. Buyers who choose to pay cash for their purchase and close escrow within 15 days of the auction will be credited $2,500 towards non-recurring closing costs by the Seller at the close of escrow.
Registered bidders are encouraged to attend a “How to Buy” information seminar at 1 p.m. Sunday, Dec. 5 at the Villebois Village Center Auction Information Office. The seminar gives new potential bidders a chance to familiarize themselves with the auction process. As with other Kennedy Wilson “How to Buy” seminars, the highlight will be an exciting live practice auction hosted by an actual Kennedy Wilson auctioneer.
The auction information office is located at 11422 S.W. Barber Street, Wilsonville. Office hours are 11 a.m. to 5 p.m. daily. More details can be found at www.VilleboisAuction.com.
More details on Kennedy Wilson Auction Group can be found at www.kennedywilson.com.
TV Interview:Our client, Kennedy Wilson Auction Group was featured in a news story on the 6:30 PM news about an upcoming Auction in Wilsonville, Oregon.
They have smaller supply of homes at risk of foreclosure
By NANCY SARNOFF
Houston Chronicle
Nov. 27, 2010
The Houston area has one of the lower supplies of distressed properties in the nation, according to a study released last week by real estate data firm CoreLogic.
In fact, markets with the smallest supply of homes at risk of foreclosure are all in Texas, a state that “largely bypassed the housing boom and subsequent bust,” the report said.
Santa Ana, Calif.-based CoreLogic found that the highest levels of distressed supply are in Flordia, Michigan and California.
The Houston area had a 7.3-month supply.
Here are how the other Texas markets stacked up:
Dallas — 6.7 months
Fort Worth – 6.3 months
San Antonio – 4.7 months
Austin – 4.2 months
The news came in a report that was more troubling for the nation as a whole.
As of August, the overall inventory of so-called “shadow properties” hit 2.1 million units, or eight months of supply. That’s up from a five-month supply a year earlier.
CoreLogic estimates shadow inventory, which is also called pending supply, by calculating the number of properties at least 90 days delinquent, in foreclosure and bank-owned that are not listed on Multiple Listing Services. The company considers six to seven months typically to be a normal amount of supply.
“The weak demand for housing is significantly increasing the risk of further price declines in the housing market,” Mark Fleming, chief economist for Core-Logic, said in the report. “This is being exacerbated by a significant and growing shadow inventory that is likely to persist for some time due to the highly extended time-to-liquidation that servicers are currently experiencing.”
Collaborating on hospital
A $25 million rehabilitation hospital will be under construction by next year in The Vintage, a north Houston development with shops, homes, a hotel and other health care facilities, including a St. Luke’s Hospital set to open next month.
The 65,000-square-foot, 60-bed hospital will be a collaboration between Dallas-based hospital operator Reliant Hospital Partners and the Cirrus Group, a health care real estate development firm that’s also Dallas-based.
The project, expected to be open in early 2012 near Texas 249 and Chasewood Park Drive, will be called Reliant Rehabilitation Hospital-Houston Northwest.
It will be the second joint venture between Reliant and Cirrus. The Cirrus Group also developed and owns a 60-bed Reliant-operated hospital in Dallas.
Reliant already runs one hospital in the Houston area – Reliant Rehabilitation Hospital-North Houston in Shenandoah.
The groups said the hospital could employ as many as 150 people once it reaches capacity in three years.
Auction in Montrose
Generally speaking, the days of being able to buy in Montrose for less than $200,000 have been gone since well before the last real estate boom. Even today, with Houston-area home sales declining and prices stressed, the popular neighborhood hasn’t depreciated much.
For an hour next month, a property auction will test that notion.
On Dec. 12 at downtown’s Hilton Americas-Houston, 19 condos will be up for sale in 510 Lovett. Starting bids will range from $75,000 to $200,000 on units previously priced from $189,900 to $469,900, according to Beverly Hills-based Kennedy Wilson, the company handling the 1 p.m. auction.
The condos range from one-bedroom, one-bath units with just over 1,000 square feet to two-bedroom, two-bath units twice as big.
The four-story brick, stucco and stone veneer building, which was built last year, even has a little pop culture history. It was the former site of legendary Houston rock radio station KLOL-FM.
KENNEDY WILSON TO AUCTION SIX LUXURIOUS HAWAIIAN STYLE RESIDENCES AT WAINANI AT POIPU ON KAUAI; LOW STARTING BIDS FROM $450,000 WILL PROVIDE BUYERS WITH THE OPPORTUNITY TO REALIZE HUGE SAVINGS!
KAUAI, HI –Auction fever is coming to Kauai, Hawaii’s Garden Isle! On Tuesday, December 28, 2010, international real estate investment and services company Kennedy Wilson (NYSE: KW) will open the bidding on six luxurious Hawaiian style residences at Wainani at Poipu in exotic, sun-drenched Kauai. Nestled between the lush fairways of the Robert Trent Jones Jr.-designed Kiahuna Golf Club, Wainani at Poipu is a little slice of paradise just steps away from “America’s Best” Poipu Beach on Kauai’s scenic south shore.
Beverly Hills CA-based Kennedy Wilson is a recognized leader in the auction industry, conducting hundreds of real estate auctions across the U.S. and Canada each year. The six move-in ready homes up for auction at Wainani at Poipu offer those seeking their place in the sun a supreme Fee Ownership opportunity to enjoy airy Hawaiian living in a resort-style atmosphere. Starting bids as low as $450,000 on these exceptional homeswith asking prices from $1,075,000 to $1,495,000 bring the exotic island lifestyle within reach, but with only six residences up for auction the bidding is sure to be spirited!
“Wainani at Poipu is, quite frankly, a homebuyer’s dream come true,” said Rhett Winchell, president of Kennedy Wilson Auction Group. ”The combination of designer living spaces, spectacular island scenery and easy access to one of Kauai’s finest golf clubs just can’t be found anywhere else.” Indeed, Wainani at Poipu’s jewel-like setting on Kauai’s south shore offers residents a seemingly infinite number of activity choices and myriad ways to experience them. “On December 28th,” continued Winchell, “auction winners will finally realize their dreams of exotic island living while reaping huge savings in the process.”
The six Hawaiian style residences up for auction at Wainani at Poipu provide 3 bedrooms and up to 3-1/2 baths and up to 3,188 square feet of living space, including garage and lanai. Matching traditional Hawaiian plantation design with luxurious modern conveniences, these homes offer expansive living areas featuring vaulted ceilings and recessed sliding glass/screen pocket doors that invite refreshing tropical breezes. The three model homes will be sold furnished. As well, select homes have swimming pools.
Inside, a rich mosaic of the finest hardwoods, fabrics, tile, stone and glass enhance the beauty of top-quality appliances and fixtures in gourmet kitchens and designer bathrooms. Grand windows frame spectacular ocean, mountain and golf course vistas. Saving the best for last, residents can appreciate glorious Hawaiian sunsets on cozy covered lanais equipped with built-in barbecues.
Wainani at Poipu (“crashing waves” in Hawaiian) treats residents to the best of both worlds: peaceful relaxation and outstanding recreation. On par with the world’s most challenging golf courses are a remarkable eight world-class courses on Kauai including Wainani’s Robert Trent Jones Jr.-designed course at the Kiahuna Golf Club. Further broadening the appeal of resort living at Wainani are the many exceptional choices for dining, entertainment, recreation, and shopping. Nearby five star hotels and world class resorts highlight any once-in-a-lifetime vacation, all year round.. Residents and their guests can appreciate the areas famed Tunnel of Trees and the island’s Waimea Canyon, better known as the Grand Canyon of the Pacific by American author and humorist Mark Twain. It just doesn’t get any better than this – and on December 28th, resort-style living gets affordable!
Successful bidders at the Wainani at Poipu auction can choose from a range of excellent financing programs offered by First Hawaiian Bank and purchasers are also eligible for aSPECIAL CREDIT. Buyers who obtain financing through First Hawaiian Bank and close escrow within forty-five (45) calendar days of the auction will be credited $5,000 towards non-recurring closing costs (based on lender guidelines) by the seller at the close of escrow.
Kennedy Wilson’s auction for six Hawaiian style residences at Wainani at Poipu will begin at 1 p.m. on Tuesday, December 28th at the Grand Hyatt Kauai Resort & Spa, 1571 Poipu Road, Koloa, Kauai, HI 96756. Registered participants are advised to arrive no later than 12 p.m. (NOON) for the auction, which will last approximately one hour.
Kennedy Wilson is pleased to invite registered bidders to a “How to Buy at Auction” informational seminar taking place at the Wainani at PoipuAuction Information Model on Monday, December 27th, beginning at 4 p.m. Attendees at the free seminar can familiarize themselves with the auction process , rehearse bidding strategies, find out how to prequalify for financing and much more. The seminar will close with an exciting live practice auction hosted by an actual Kennedy Wilson auctioneer.
To learn more about the December 28th auction at Wainani at Poipu, please visit the Wainani at Poipu Auction Information Model at 2998 Kiahuna Plantation Drive, Kauai, HI 96756. The office is open daily from 10 a.m. to 5 p.m. for your convenience. Registered bidders unable to attend the auction in person can still participate via live internet online bidding with real-time audio and video of the auction at www.BidKW.com. Further information and details on the auction and online bidding are available at the auction website atwww.PoipuAuction.com.
ABOUT KENNEDY WILSON
Founded in 1977, Kennedy Wilson is an international real estate investment and services company headquartered in Beverly Hills, CA with 21 offices in the U.S. and Japan. The company offers a comprehensive array of real estate services including property and asset management, brokerage and auction services, and construction and trust management. Through its fund management and separate account businesses, Kennedy Wilson is a strategic investor and manager of real estate investments in the U.S. and Japan. For further information on Kennedy Wilson, please visit www.kennedywilson.com.
