Aloha
Waikiki Banyan owners,
I
just returned from a presentation to owners for
the purchase of the Lease-Fee interest at the Waikiki
Banyan. This is the 3rd offering. You should be receiving a packet in the mail from
Peter Savio's company, Hawaiian Island Homes, Ltd, which is the
Seller's (Queen Lili'uokalani Trust) broker offering the Lease-Fee
interest. If you purchase there is a company, Becker who
has a contractual interest (Sandwich position) which will continue
unless Becker offers a buy out in the future. Presently
Becker is receiving approximately $21/mo of the present lease rent
collected and according to Peter, the monthly paid to Becker would
remain at approximately $21/mo until December 1, 2020. It
automatically goes away in 2035.
The
land owner presently is Kawaiahao Church and the Queen
Lili'uokalani Trust. Kawaiahao is selling their interest to
Queen Lili'uokalani Trust and the trust is in turn selling to the
owners. The association has the first right of refusal,
however, it appears the Lessee (you) will have the primary right to
purchase the Lease-Fee. You must decide by May 29, 2012 and Closing will then take place no later than
August 30, 2012. There may be a possibility that closing could
be possible within the next 45-days. In the package will be a
complete explanation, cost breakdown and contract. If you
choose to have an outside broker represent you it will not cost you
any extra. If the Seller's agent, Hawaiian Island Homes, Ltd.
is the only agent involved they will be paid a 1% commission from
the Queen Lili'uokalani Trust, however, if you have James S. More (R)
CRS represent you, no additional commission will be paid by you and Jim
will be representing you.
Peter
also explained if you did not purchase the Lease-Fee interest and
when the new lease rent is determined in December 2010 it
probably would not increase that much due to the fact the new
lease rent will be based on the value of the land today with no
building. Since the building was built, the land has be
down-zoned so today you could only build 300-400 units instead of
the current 876. The Lease rent increased from $79./mo. to
$166./mo. until December 1, 2020. If you sign a purchase agreement for the
Lease-fee interest you will have 90-day to rescind at no cost to
you.
I
have uploaded to my web site a copy (10-pages) of the contract and
Lease-Fee cost for each apartment. Here is the address:
Waikiki
Banyan Lease-fee contract Except for five (5) apartments the
price for the Leased-Fee is now $103,600. plus closing costs.
The costs are shown using your CPR number.
If
you have a real estate agent assisting you in the purchase or
sale of your apartment please call them for further clarification.
If you do not have an agent allow me to assist you in this process.
Please indicate under IV on the first page of the Lease-Fee contract
that James S. More (R) of Prudential Locations LLC would be your
agent in the Lease-Fee purchase (see Sales Contract)
Please
let me know if you have any further questions.
Aloha
for now,
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