WAILUA — The historic Coco Palms Resort will be up for auction at a foreclosure sale later this month in “as-is” condition.
The abandoned hotel fronting Wailua Beach will be up for public auction on Monday, July 26, at noon on the footsteps of the Fifth Circuit courthouse.
The property will be sold to the highest bidder, without any warranty, with 10% of the highest bid payable in cash, money order or by certified or cashier’s check at the conclusion of bidding.
The purchaser will be responsible for all costs and expenses for the closing, according to the legal notice.
The foreclosure sale was prompted by a June 2019 foreclosure proceeding that eventually led to two proposals for auction of the property where the Elvis Presley movie “Blue Hawai‘i” was filmed.
Rumors earlier this week from the New York Post and SFGate that the hotel was facing demolition were unconfirmed and published without sources. Any developer would need to apply for a demolition permit, which the county had not been able to verify as of Thursday afternoon.
Famed for its celebrity clientele since its opening in 1953, Coco Palms never recovered after its destruction by Hurricane ‘Iniki in 1992. Several attempts to restore the iconic property since then failed.
The most recent plans were to take the remaining structure of the property and build a 350-room resort and rebuild cottages on the property, reminiscent of the preferred suites of famed celebrities who formerly walked its grounds.
The county’s Planning Department initially issued permits to the Honolulu-based Coco Palms Hui, LLC, for the property in 2015. In March 2019, Stillwater Equity Partners took over the property after Coco Palms Hui defaulted on more than $11 million in financing on a $22-million mortgage.
Viewing of the property is by appointment only, by the request of prospective bidders.
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Sabrina Bodon, public safety and government reporter, can be reached at 245-0441 or sbodon@thegardenisland.com.
