Makena Resort Foreclosure Auction gets $55Million bid during this 1st Round

The trip from South Maui to Wailuku and back, took me much longer then the actual event of the Makena Resort Foreclosure Auction this past Friday morning on the island’s courthouse steps. The bidding process itself was completed in less then 3 minutes. With no surprise for this 1st round, a trustee of the current lien holder, Wells Fargo, submitted the winning bit of $55 Million US dollar.

The court appointed commissioner Christopher Lau conducted the event and read the description of the over 1,800-acre parcel including the Makena Beach and Golf Resort, better known as the Maui Prince Hotel. The oceanfront portion of this New Development is limited to the famous Maluaka Beach Park and stretches far up the hill including the two most southern golf courses in South Maui.

Today’s Maui Photo is a Maui Aerial from my March 2010 collection of Wailea and Makena. The construction to the right of the beach is part of the club house for Maluaka At Makena. Although Maluaka At Makena is not part of the Makena Resort Foreclosure Auction it is linked to the same owners.

The message coming across in the news publications seems to indicate that the Makena Resort really is about to change hands for $55 Million, while it is also public knowledge that the same property sold for a whooping $575 Million back in 2007. The Honolulu Star Bulletin says the “Makena Resort goes for $55M“. The Honolulu Advertiser claims that the “Makena Resort sells at auction for $55M“. The Maui News states that the “Makena Lenders keep property in auction” and the Pacific Business News simply states that “Wells Fargo is the high bidder for the Maui Resort“.

For a complete overview, I recommend reading the articles using all four links above. Commissioner Christopher Lau explained that a confirmation hearing before 2nd Circuit Judge Shackley Raffeto will be announced within the next 30 to 45 days. I believe that this confirmation hearing will be instrumental, since a possible bidding with mandatory 5% increments may lead to a more realistic sales price for this prime property. Christopher Lau has been maintaining a website for certain announcements. It might be worth checking out “Maui Hotel Sale” in the near future, if you are interested.

Technically none of the other well established Makena Condos and Makena Homes or neighborhoods have anything to do with this entire event, nevertheless, it is to be expected that the development of the Makena Resort will greatly impact the Makena Real Estate market here in the South Maui resort area.