I believe I have written blog posts about every property sold by Concierge Auctions on the Big Island of Hawaiʻi… and I have written blog posts about the oceanfront estate for sale at Puakea Bay Ranch near Hawi. Now Concierge has been hired to sell the Puakea oceanfront property. Four years ago I predicted this luxury oceanfront home was “going, going, gone.” Despite the egg on my face, on September 21, it will indeed be gavel down!
Puakea Bay Ranch Oceanfront Estate to be auctioned without reserve September 21, 2017 (MLS 292652)
Oceanfront Estate in Gated Equestrian Community
One of my first posts about this home was in the context that today’s shoreline setbacks would require that this home be built at a greater distance from the oceanfront. Standing on the lanai or even relaxing in the master bedroom suite of the Puakea Bay Ranch home being auctioned, one has the feeling of being on a cruise ship.
Master bedroom… or cruise ship cabin? You can just make out Maui in the distance to the right.
The basics on the property are as follows:
- A total of 9 bedrooms and 12,927 sq.ft., including the main house, guest house and caretakers quarters.
- Gracious living spaces, both indoors and out.
- Exercise room, office, 2,000 bottle wine cellar.
- Swimming pool, tennis court, lushly landscaped grounds.
The home sits on a parcel of just under 5 acres; the sale includes the two adjacent 10-acre lots, perfect for adding a barn and pastures to keep horses, as equestrian trails encircle Puakea Bay Ranch.
What is the Puakea Bay Ranch Oceanfront Estate Worth?
The opportunity is unique. So how does an interested buyer come up with an offer price?
Letʻs start with the value of the land alone. The only near-oceanfront 10-acre lot for sale at Puakea Bay Ranch is listed at $1,050,000 (MLS 288550) and non-oceanfront 10-acre lots are selling for on average $350,000. Next door at Ranch at Puakea, a 24-acre true oceanfront lot sold last for $3.2 million. That puts the land value alone at somewhere between $1.5 and 3.2 million. Given that this land is already beautifully landscaped, one would likely be near the higher number.
Replacement cost per square foot? Building cost for luxury homes ranges from $500-1,000/sq ft in Hawaiʻi, so letʻs use a modest $700/sq.ft. multiplied by the 12,927 sq.ft.t, and it’s already up to over $9 million without adding tennis court and swimming pool. At $500/sq.ft., building cost would be $6.5 million.
In other words, based on replacement cost, even 10% below the list price of $9,950,000 looks reasonable.
What would comparable, large estates sell for within the Kohala Coast resorts? In the past twelve months, a home of 8,500 sq.ft. on 1.5 acres at Kaunaoa at Mauna Kea Resort sold for $15 million and a home of 9,382 sq.ft. on 1.33 acres sold for $17.5 million at Kukio.
If youʻd like an expansive estate home with swimming pool and tennis court in a gated community, but donʻt need oceanfront, try this Kohala Ranch home with ocean and mountain views (MLS 603687)
If youʻd like to look at currently listed estates for sale outside of the Kohala Coast resorts to compare with the Puakea Bay Ranch estate, you might try the ones listed in this blog post on resort lifestyle properties. Those listings with their own pools and tennis courts range from $3.75 million for 8,000 sq.ft. with ocean, sunset and coastline views (MLS 603687), to $23 million for oceanfront Puako (MLS 601393).
For more about the Puakea Bay Ranch property to be auctioned September 21st, or the concierge auction bidding process, feel free to call or email.
A hui hou,
Beth Thoma Robinson R(B)