Stalled Honolulu High-Rise Gets New Owner

by Pacific Business News
A San Diego-based developer has reached a deal to take over a stalled Honolulu high-rise condominium project that went into foreclosure late last year.
OliverMcMillan has closed on the purchase of the $29.5 million lien filed by Hawaiian Dredging Construction Co., which filed for foreclosure and plans to resume work on the half-finished Moana Vista condo project early next year, the California company said in a news release.
OliverMcMillan said it also has reached a deal with the project’s original developer, KC Rainbow II, to acquire its interest in the property.
A foreclosure auction, which had been postponed from Sept. 25 to Friday, will be put off for another two weeks.
“However, the chances of having an auction, I believe, are slim,” said foreclosure commissioner Sanford Murata.
OliverMcMillan is reviewing the design and plans to make improvements and rename the project, which is located on Kapiolani Boulevard between Ward Avenue and Kamakee Street.
“We believe in Hawaii, and see this project as a great opportunity, which is why we are investing substantial capital in the state,” OliverMcMillan CEO Morgan Dene Oliver said in a statement.
Hawaiian Dredging and Construction Co. stopped construction Dec. 19, 2008, at the 27th floor of the building, which was designed with 46 floors and 492 two-bedroom units. That was barely three months after the world financial crisis erupted and ground financing to a halt.
Hawaiian Dredging sued KC Rainbow II in December in a mechanic’s lien and then in April for foreclosure.
The foreclosure was granted on Aug. 12, and Murata was named commissioner. KC Rainbow II canceled approximately 175 sales contracts and returned deposits.
KC Rainbow II owner Fred Chan, who lost $65 million of his own money on the $140 million Kapiolani Boulevard project, also was the developer for the Moana Pacific condominium a few blocks down Kapiolani Boulevard.
Hawaiian Dredging’s claim was not the only one against KC Rainbow II, but it was the largest.
Subcontractors have claimed in other mechanic’s liens that they are owed almost $800,000.
Author Contact Info: Pacific Business News