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Beachfront Kolea's Best Buy – Oceanfront Single Family Homes

This oceanfront Kolea home went to foreclosure, and is now for sale at $4,366,000 (MLS# 242410)

The value of the luxury Kolea condos over the long run is enhanced by two factors that won’t change:

  1. Its beachfront location with the private path to Anaeho’omalu Bay
  2. The developer’s choice to sell 17 lots around the oceanfront perimeter for single family homes

Although several of these lots were sold to purchasers who immediately began construction on a second home, or primary residence for themselves, others were bought by investors with the plan to build spec homes. Timing is everything, and although the first spec homes offered for sale found buyers while the market was hot, those that came late to the party are struggling. One of those homes, on Lot 4 next to the Beach Club amenities and the path to A-bay, is already listed as an REO (bank-owned post-foreclosure) for $4,366,000.

Let’s trace the history of this home. The lot was sold in 2004 for $3,000,000 and flipped the following year for a tidy $500,000 profit. At 5 bed/5 bath and 4,784 sq. ft. with a pool separated from the ocean only by a lava, $4,366,000 (less than $1,000/sq. ft.) is well below replacement cost. The home was designed by architect Todd Schooler as were several of the other homes at Kolea.

Is there an upside for today’s purchaser? The house flanking the other side of the Beach Club was a similar Schooler project, and it sold for $7,500,000 in 2006. And in 2009, at the bottom of the real estate doldrums, what many thought to be the most beautiful of the homes constructed for resale still commanded a $6,500,000 price.

Surprisingly, the REO is not the lowest priced residence of the six offered for sale at Kolea. The house on Lot 16 is asking only $4,199,000. Although I’ve heard some consider the west side of the community less desirable than the south-facing side closer to the Beach, the advantages of the lot 16 location is that it gets sunset views, and doesn’t listen to the luau at the adjacent hotel as nearer homes and condos do. Who cares that you are a few steps farther from the community pool when you have your own!?

Three residential owners other than the REO are delinquent on the modest monthly dues, which means they may also be considered distress sales.

That does not apply to my favorite home for sale, the one on Lot 7, asking price $6,499,000. I consider the location ideal among the 17 lots, and have long admired the floor plan and finishes (yes, it has been on and off the market for years, but after a big price reduction, today’s asking price is more in line with comps).

The attention to design detail in this home—floating walkway entrance, pool cabana, wine cellar—is what one would expect of a home at Hualalai or Kukio…where a front row location would double the price! Another sort of best buy, in other words.

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Catherine Klug

February 14, 2011

Great update, Beth! What about the Kolea HOA dues? Are they comparable to the ones at the Mauna Kea Resort?

Catherine Klug

February 14, 2011

Great update, Beth! What about the Kolea HOA dues? Are they comparable to the ones at the Mauna Kea Resort?

Beth Robinson R(B)

February 14, 2011

Excellent question, Catherine.

There are two homeowner associations at Kolea. The single family residences and unbuilt lots only pay the Kolea HOA dues of $524/mo. Of course a home pays for its own landscaping, pool service, etc.

For a home in the Uplands at Mauna Kea, the cost might be similar to Kolea…but if you were below the highway, say the two homes listed in Fairways North, you would pay more like $1250/mo.

Beth Robinson R(B)

February 14, 2011

Excellent question, Catherine.

There are two homeowner associations at Kolea. The single family residences and unbuilt lots only pay the Kolea HOA dues of $524/mo. Of course a home pays for its own landscaping, pool service, etc.

For a home in the Uplands at Mauna Kea, the cost might be similar to Kolea…but if you were below the highway, say the two homes listed in Fairways North, you would pay more like $1250/mo.

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February 23, 2011

[…] chance last week, I blogged that the single family homes for sale at Kolea, a gated beachfront community on the Kohala Coast, look to me to be a best buy. That best buy just […]

Luxury Kohala Coast Properties To Be Auctioned in March « Hawaii Real Estate Market

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[…] chance last week, I blogged that the single family homes for sale at Kolea, a gated beachfront community on the Kohala Coast, look to me to be a best buy. That best buy just […]

David Inglis

April 22, 2011

BETH
WHEN I WAS IN KOLEA THIS MARCH THERE WAS AN AUCTION OF ONE OF THE HOUSES AND ONE OF THE THIRD STORY CONDOS. DO YOU KNOW WHAT THEY SOLD FOR. I COULD NOT FIND OUT BEFOR I LEFT. I PLAN ON GOING BACK NEXT WINTER JAN 15 TO MARCH 15 AND IF THE PRICES CONTINUE TO DROP I WILL BE BACK IN THE MARKET FOR A SECOND OR THIRD STORY CONDO AT KOLEA.
REGARDS DAVID

David Inglis

April 22, 2011

BETH
WHEN I WAS IN KOLEA THIS MARCH THERE WAS AN AUCTION OF ONE OF THE HOUSES AND ONE OF THE THIRD STORY CONDOS. DO YOU KNOW WHAT THEY SOLD FOR. I COULD NOT FIND OUT BEFOR I LEFT. I PLAN ON GOING BACK NEXT WINTER JAN 15 TO MARCH 15 AND IF THE PRICES CONTINUE TO DROP I WILL BE BACK IN THE MARKET FOR A SECOND OR THIRD STORY CONDO AT KOLEA.
REGARDS DAVID

Beachfront Kolea Market Update – July, 2011 (Big Island) « Hawaii Real Estate Market

July 27, 2011

[…] in an increasingly tight Kohala Coast resort market, given their unique beachfront location. The single family homes at Kolea that are bank-owned after foreclosure will now sell based upon this most recent comp, which is well below the 2009 market sale of the […]

Beachfront Kolea Market Update – July, 2011 (Big Island) « Hawaii Real Estate Market

July 27, 2011

[…] in an increasingly tight Kohala Coast resort market, given their unique beachfront location. The single family homes at Kolea that are bank-owned after foreclosure will now sell based upon this most recent comp, which is well below the 2009 market sale of the […]

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