WAIPOULI — Representatives from a Honolulu-based development company that purchased the Kauai Kailani two years ago said they are on track to fully reopen the former timeshare as a condominium in a few months. “What they did was take an
WAIPOULI — Representatives from a Honolulu-based development company that purchased the Kauai Kailani two years ago said they are on track to fully reopen the former timeshare as a condominium in a few months.
“What they did was take an old, outdated property and revitalize it to sell at a price point that is affordable for the area,” Bridge Real Estate Hawaii Realtor Associate Alan Veach said.
Renovations to the Kauai Kailani began in 2013, shortly after it was purchased by GCT Properties, Inc. in 2012 from the Bolster family, who managed and operated the property as a timeshare since the late 1960s or early 1970s.
This $14 million purchase also included the acquisition of Mokihana Kauai and the Bull Shed restaurant from the Bellingham, Wash., family.
The 30-year ground lease agreements for the Kauai Kailani expired just before to the purchase, paving the way for renovation work to begin on the property. Similar lease agreements for the 80-unit Mokihana Kauai are scheduled to expire this summer.
All the 57 two-bedroom and one-bath units within the Kauai Kailani complex, Veach said, are being renovated to bring them up to current standards — 11 of which will be expanded into three-bedroom and two-and-a-half bath units.
While construction was underway, some of the units that weren’t sold were being used as vacation rentals through Castle Resorts and Hotels, the Kauai Kailani’s current property manager.
Construction on the complex’s mauka building, Kauai Kailani Building B, was completed in September. The makai building, Building A, is on track to be completed by the beginning of April, Veach said.
As of February 2014, vacation rental reservations have been made on over 75 percent of the Kauai Kailani units, which are now up for sale.
All of the units, Veach said, are being offered as fully furnished fee-simple condominiums, which will collectively be owned and operated by a homeowner’s association upon completion.
Prices for units in the Kauai Kailani B Building range from $226,675 for a two-bedroom and one-bath unit on the first or second floors to $236,675 for a similar unit on the third floor.
Units being sold in the Kauai Kailani A Building range from $342,675 for a two-bedroom and one-bath condominium to $425,275 for a three-bedroom and two-and-a-half bath one.
Because the Kauai Kailani is located in a permitted vacation rental zone, residents who purchase condominium units, Veach said, will have the option to rent out their units through a property manager.
