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Absolute Auction Coming For Resort Property

homes0308-1When an 11.78-acre oceanfront parcel at Kapaa is auctioned March 19, it will be one of only a few live auctions of real property held in Hawaii in recent years. National Auction Group president William R. Bone said that while large parcels of vacant land, condominiums and estates are routinely sold at auction throughout the nation, such activity in Hawaii has historically lagged significantly behind that of other states — most notably Florida, where his company has auctioned approximately 5,000 condominiums.

During his four decades in real estate auctioning, Bone has conducted auctions in six foreign countries and 44 states. In 2005, his Alabama-based National Auction Group auctioned a 1,044-acre oceanfront parcel in Central Molokai and, the following year, a 2.4-acre private estate in East Molokai.

“The Kauai property, Coconut Plantation Village, is one of the last remaining fee simple resort parcels available and is being sold with perpetual entitlements in place for 192 condominium units and/or resort timeshare use,” Bone said. “The entitlements are ‘evergreen,’ which is quite rare on Kauai and allows development of the property, or the option of land banking for future development. Outside of the commercial appeal, this property would also make an ideal personal or corporate retreat. It has 468 linear feet of frontage on a sandy beach and is well located near the town center and six miles from the main airport in Lihue. The property is currently owned by a California-based hedge fund, which had served as lender for the previous owner, Niu Pia Land Company, Ltd., a developer who purchased the land in 2005.”

The March 19 auction will be staged at the Marriott Courtyard Kauai at Coconut Beach. Registration begins at 11 a.m. and the auction at 1 p.m.

Hawaii Standard Time. Tours of the property will be conducted March 9-19 from 10 a.m. to 6 p.m.

Who can bid? “Anybody who comes in with $100,000 in the form of a Cashier’s Check, or a personal or company check with a bank letter guaranteeing the check, can participate in the live auction which will be conducted by one of our auctioneers,” Bone said. “We are also setting up a phone bank for phone bidding, or you can bid online … but in either case the $100,000 deposit must be wired in to the escrow company handling the deposits, Title Guaranty. Your deposit is refundable if you are not the high bidder. If you are bidding online or by phone, the deposit must be received by the escrow company no later than March 18.

“We set up our auctions like a wedding reception. A live auction is a unique, exciting event and it continues until the bidding stops. Then the property will go to the highest bidder. Because this is an ‘absolute auction,’ the property will sell regardless of the amount of the final bid.”

Bone added that the National Auction Group welcomes Realtor participation and will provide forms to register clients on request. Interested parties can sign up for a tour of the property or obtain an emailable information packet by calling (800) 648-6435.

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