Produced from Pacific Business News
A Denver-based real estate investment company is buying the Hotel Hana-Maui for an undisclosed amount and plans to change how the boutique hotel is operated.
AmStar Group LLC said Tuesday that it would purchase the 70-room hotel on 70 oceanfront acres in East Maui from Ohana Hotel Co. in a deal that is expected to close in May.
The firm plans to reposition the AAA Four Diamond hotel, which will mean a change in current operations and new job descriptions that will mean a reduction in staff in the short term, the company said.
“A change in the existing operational model is critical to turning the hotel around and into a viable operation,” Joy Berry, president of Green Tea LLC, an Amstar subsidiary that will manage the property, said in a news release. “Our revamped organizational structure will take a team approach requiring employees to have more than one role, so that no matter the task, we all work together and help each other out to ensure the long-term viability and success of the hotel and more jobs for the community.”
In January, Ohana Hotel Co. notified the Hawaii Department of Labor and Industrial Relations that there was a pending sale that would affect approximately 200 employees, some of whom are members of the UNITE HERE Local 5, AFL-CIO labor union. The buyer at that time was not identified.
Green Tea plans to host a job fair within the next few weeks and is encouraging current employees and members of the community to apply for jobs. The company said it also is looking at possibly outsourcing some operational functions.
“We believe the Hotel Hana-Maui, if repositioned in the marketplace, can be profitable and grow, offering more jobs,” Berry said. “However, it will take hard work, resources, time and, most importantly, employees who support each other as we reposition the hotel.”
The purchase will be the first in Hawaii for Amstar, which owns hotels and resorts in Virginia, Illinois, Rhode Island, Florida, California and Colorado. It also owns office, multifamily, industrial, retail, residential and mixed-use properties in a number of states on the Mainland.
Wednesday, April 21, 2010
Monday, August 31, 2009
Makena Resort put in Foreclosure
The Makena Resort, which was purchased by a Maui developer and Morgan Stanley two years ago for $575 million, is in foreclosure.
The partnership between developer Everett Dowling and Morgan Stanley created to purchase the 1,800-acre resort owes $192.5 million in principal, plus interest and late charges, according to the foreclosure lawsuit filed Monday in 2nd Circuit Court on Maui by Wells Fargo, acting in its capacity as trustee for the registered holders of the commercial mortgage securities that secured the property.
Prince Resorts Hawaii, which operates the Maui Prince Hotel and the Makena North Golf Course, was notified Tuesday that the foreclosure had been filed in 2nd Circuit Court on Maui on Monday.
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The partnership between developer Everett Dowling and Morgan Stanley created to purchase the 1,800-acre resort owes $192.5 million in principal, plus interest and late charges, according to the foreclosure lawsuit filed Monday in 2nd Circuit Court on Maui by Wells Fargo, acting in its capacity as trustee for the registered holders of the commercial mortgage securities that secured the property.
Prince Resorts Hawaii, which operates the Maui Prince Hotel and the Makena North Golf Course, was notified Tuesday that the foreclosure had been filed in 2nd Circuit Court on Maui on Monday.
READ FULL ARTICLE
Wednesday, August 26, 2009
The Pitfalls Of The Short Sale
Provided by Mortgage Market News
The Pitfalls Of The Short SaleThe Short Sale.
The new buzz word and opportunity for homeowners trying to dump their property for less than what is owed, is not the panacea for everyone. Yes they can be done, but it is in no way an easy proposition. One must take into account that a Short Sale is an “Open” negotiation to purchase property, and every aspect of the transaction is open to negotiation. Be aware that a Short Sale is nothing more than a negotiation to release the mortgage lien from the property so that title can be transferred. Here are some of the truths that sellers and buyers should be made aware of when considering this type of transaction.
1) A negotiated Short Sale could take several months for a lender to approve. With interest rates expected to only go up, some buyers might not want to wait.
2) The lender can counter the offered price and also stipulate that the buyers pay fees not customary with Hawaii transactions. These fees could include the buyer paying back property taxes, back HOA fees, paying commissions, and paying all of the Escrow and Title fees.
3) Once the lender approves the Short Sale, their terms might not be acceptable to the buyer. After waiting two months for the lender to approve a short sale, a buyer just cancelled their transaction because the lender required the transaction close in 30 days. The husband was out of the country and they would not be able to close in the required time frame.
4) A short sale does impact the seller’s credit rating. Depending on the payment history of the seller with their current loan, upon completion of the short sale the lender will report the mortgage to the credit bureaus differently. Deed In Lieu Of Foreclosure is one step up from foreclosure and is issued if the seller has stopped paying the mortgage during the short sale period. Paid In Full For Less Than The Full Balance will be issued if the seller has continued to make all payments on time. This rating will still have a major impact on one’s credit, and affect their ability to get another mortgage.
5) Upon completion of the short sale, the lender will issue a 1099-C and submit it to the IRS. Sellers should consult a tax professional to determine their individual impact.
6) Last, but maybe the most important item a seller needs to know is that the lender may and can require the seller to sign a separate promissory note to cover any shortage of what is owed to the lender.
The Pitfalls Of The Short SaleThe Short Sale.
The new buzz word and opportunity for homeowners trying to dump their property for less than what is owed, is not the panacea for everyone. Yes they can be done, but it is in no way an easy proposition. One must take into account that a Short Sale is an “Open” negotiation to purchase property, and every aspect of the transaction is open to negotiation. Be aware that a Short Sale is nothing more than a negotiation to release the mortgage lien from the property so that title can be transferred. Here are some of the truths that sellers and buyers should be made aware of when considering this type of transaction.
1) A negotiated Short Sale could take several months for a lender to approve. With interest rates expected to only go up, some buyers might not want to wait.
2) The lender can counter the offered price and also stipulate that the buyers pay fees not customary with Hawaii transactions. These fees could include the buyer paying back property taxes, back HOA fees, paying commissions, and paying all of the Escrow and Title fees.
3) Once the lender approves the Short Sale, their terms might not be acceptable to the buyer. After waiting two months for the lender to approve a short sale, a buyer just cancelled their transaction because the lender required the transaction close in 30 days. The husband was out of the country and they would not be able to close in the required time frame.
4) A short sale does impact the seller’s credit rating. Depending on the payment history of the seller with their current loan, upon completion of the short sale the lender will report the mortgage to the credit bureaus differently. Deed In Lieu Of Foreclosure is one step up from foreclosure and is issued if the seller has stopped paying the mortgage during the short sale period. Paid In Full For Less Than The Full Balance will be issued if the seller has continued to make all payments on time. This rating will still have a major impact on one’s credit, and affect their ability to get another mortgage.
5) Upon completion of the short sale, the lender will issue a 1099-C and submit it to the IRS. Sellers should consult a tax professional to determine their individual impact.
6) Last, but maybe the most important item a seller needs to know is that the lender may and can require the seller to sign a separate promissory note to cover any shortage of what is owed to the lender.
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