I love Hawaii. Warm tropical breezes, beautiful scenery, a diverse cultural experience and killer golf courses make Hawaii a place I would like to put down roots. And thanks to the Internet, I have found a perfect spot on the Island of Kauai that I would sell my soul to live. Unfortunately, there is a bit of trouble in paradise.
Near Poipu, this incredible development is called Kukui'alu. It covers over 1,000 acres with views to die for, a $100 million clubhouse, world-class golf course, spa and the absolute best of the best - for those that can afford the price tag. The development broke ground in 2008. Slightly over a month later, Lehman Brothers collapsed and, as they say, the rest is history.
Blame it on poor timing, but in the last 18 months, there has only been one sale. After the economy went into a nosedive, buyers melted faster than ice cubes in the tropical sun. With prices for land starting at over $1 million, it is little wonder no one is buying. Even people that can afford the price are staying away in droves.
On the drawing board for over 25 years, Kukui'alu is the grand design of Alexander & Baldwin and DMB Associates. The concept was to offer a very high-end product with features that would make it the most upscale development in the Aloha State.
At the outset, 80 "founders" purchased lots for a total of $110 million. Low-end properties in the development start at $1 million with custom homes priced at above $20 million. Cottages are currently being offered around $2 million and club dues are $1000 per month.
With an investment of over $225 million, Alexander & Baldwin intends to stay the course and wait for the economy to improve. Kukui'alu is an important part of their portfolio and the company believes it is a tremendous long-term value.
The economy needs to do more than just improve before I could ever own a property in Kukui'alu. But I'll keep dreaming.
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Hawaii: Trouble in Paradise
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