New Kula Makai Phase 2 Homesites at Kukui’ula
Five of 12 homesites were under contract the first week of the new Kula Makai Phase 2 at Kukui’ula.
Kula Makai Neighborhood
The gated Kula Makai neighborhood is the finest, la crème de la crème, of Kukui’ula because of its location along the western edge of the community, adjacent to the National Tropical Botanical Garden on the South Shore of Kauai.
Kula Makai Phase 2 features ready-to-build homesites priced from $1,700,000 to $2,250,000, each with at least 100 ft frontage along Noho Kai Street, and stunning views of the South Shore Kauai coastline. Every Kula Makai Phase 2 homesite offers 7-day rental home privileges.
Kukui’ula ownership privileges and amenities include the private club membership, the Hi’ilani Spa featuring indoor/outdoor treatment rooms, outdoor lap pool, steam rooms, and complete fitness rooms and movement studios, the Golf Club House, The Lodge at Kukui’ula, fine dining in the Kukui’ula Plantation House, and access to Upcountry Farm and Catch n’ Release Fishing Lake.
Kukui’ula located in Kauai’s Certified Opportunity Zone
In late 2018 Kukui’ula was included in one of two Kauai Opportunity Zones certified by the Secretary of the U.S. Treasury. The Tax Cuts and Jobs Act (TCJA), passed in December 2017, added the Opportunity Zones to the tax code, as well as 26 USC section 1400Z-2 to provide certain incentives for taxpayers to invest capital gains in Opportunity Zone (OZ) property in over 8,700 Opportunity Zones in the country.
Opportunity Zone Real Estate Investments
It is my understanding OZ real estate investments must include substantial rehabilitation, doubling the basis within 30 months. The improved property must then be used in an active conduct of business, for example, renting of the property.
Kukui’ula currently offers a variety of vacant homesites with 7-day and 30-day rental home privileges. The new Kula Makai Phase 2 features 7-day rental home privileges.
It will be interesting to follow the IRS publications as the department interprets 26 USC section 1400Z-2 applications developed by tax specialists. Please contact your tax specialist to determine how these new tax incentives may possibly work for you.
Looking for Opportunity Zone property on Kauai? Contact me — Lori Decker, Kauai Opportunity Zone specialist.