In our last two properties offered for sale here in Hawaii we have experienced great interest from buyers from Korea. While many of the buyers want to spend more time in the islands there is another twist to this buyer group. The Koreans are interested in major construction projects here in Hawaii. In the first half of this year we met with many groups doing "due diligence" on coming to Hawaii to build large scale resort projects. Specifically they are interested in Hotels in Hawaii and golf courses in Hawaii. These groups are looking at long term development and holding periods and starting with a minimum of 100 Million dollars investment in commercial real estate in Hawaii.
Monthly Archives: August 2011
Investment properties in Hawaii- Korean buyers are here
In our last two properties offered for sale here in Hawaii we have experienced great interest from buyers from Korea. While many of the buyers want to spend more time in the islands there is another twist to this buyer group. The Koreans are interested in major construction projects here in Hawaii. In the first half of this year we met with many groups doing "due diligence" on coming to Hawaii to build large scale resort projects. Specifically they are interested in Hotels in Hawaii and golf courses in Hawaii. These groups are looking at long term development and holding periods and starting with a minimum of 100 Million dollars investment in commercial real estate in Hawaii.
75 Transactions in Investment Properties for the First Half of 2011
In Hawaii, there have been 75 investment property sales over 1 million
dollars from January to June, 2011. Sales volume was $438MM for Hawaii commercial property sales. Numbers of sales are similar to that of 2010.
Sales volumes are definitely up over the past six months across the US.
Surprisingly, 17% of all sales across the country are characterized as distressed. In Hawaii, the percentage of distressed sales is much, much lower. There were approximately 5 transactions or 6% of our sales, characterized as distressed sales. Colliers was the 5th busiest investment sales brokerage company across the U.S.
2011 First half Hawaii commercial investment property sales peak at 75 transactions
In Hawaii there have been 75 investment property sales over 1 million dollars in the period from January thru June. Sales volume was 438 million for Hawaii commercial property sales. This is a very similar number of sales to 2010. Sales volumes are definitely up over the past six months across the US. Surprisingly, 17 percent of all the sales across the country are characterized as distressed sales. In Hawaii the percentage of distressed sales is much… much lower. There were approximately 5 transactions or 6 percent of our sales are characterized as distressed sales. Colliers was the 5th busiest investment sales brokerage company across the U.S.
Please support our local community!
Late last month, I was on the KHON morning news, promoting the upcoming Easter Seals Hawaii charity golf tournament. As you can see, I’d go to any lengths to support this charity, including an interview on the news wearing a ridiculous outfit.
Click here to view my ridiculous outfit and my 2 minutes of fame!
I initially sought out involvement in Easter Seals Hawaii so I could give back to a great organization that has personally touched my life. A few years ago, they helped our son get up to speed in his speech and made the entire experience fun for both him and us, as parents.
I am asking for your support of this wonderful organization because I know first hand what crucial services they provide for families just like yours or mine. State and Federal monies are drying up, so now more than ever, they need the support of the community.
There three ways you can help in the next two minutes:
Click here to sign up for the Golf Tournament on September 14, 2011.
Click here to donate prizes, trips, cars and airplanes for the golf tournament.
Click here to make a monetary donation that will stay in this community.
Aloha!
A profitable Hawaii hotel investment…even after your equity has evaporated
This past commercial real estate market correction has taught us a new trick for investing in Hawaii commercial real estate. It is not any easy one to perfect either. Only the most sophisticated and the deepest of pockets seem to have the best opportunities. We are seeing several examples of investors who bought large properties (mostly hotels) where the market value of the property has dropped 30% or greater, and the loans now total more than the current value. In past cycles we saw clients give the keys back and be happy they had no personal guaranty’s. The investor would lose title to the property and write off their cash invested…. and usually go out and raise more money to invest in the next property. This time around we know of more than one investor who went back and bought the underlying loans back at a discount, waited for the market to raise just a little bit , and bingo they now have equity back in the deal. They in effect lost their equity, stayed in the deal, collected asset management fees along the way and later squeezed the least secured position down to dramatically reduce the overall level of debt on the property. This is another way to create value out of a property in this cycle.
A profitable Hawaii hotel investment…even after your equity has evaporated
This past commercial real estate market correction has taught us a new trick for investing in Hawaii commercial real estate. It is not any easy one to perfect either. Only the most sophisticated and the deepest of pockets seem to have the best opportunities. We are seeing several examples of investors who bought large properties (mostly hotels) where the market value of the property has dropped 30% or greater, and the loans now total more than the current value. In past cycles we saw clients give the keys back and be happy they had no personal guaranty’s. The investor would lose title to the property and write off their cash invested…. and usually go out and raise more money to invest in the next property. This time around we know of more than one investor who went back and bought the underlying loans back at a discount, waited for the market to raise just a little bit , and bingo they now have equity back in the deal. They in effect lost their equity, stayed in the deal, collected asset management fees along the way and later squeezed the least secured position down to dramatically reduce the overall level of debt on the property. This is another way to create value out of a property in this cycle.
