The Islander on the Beach is a 198 unit condominium/hotel AKA condotel located on the east shore of Kauai in Kapaa, just behind the eclectic Coconut Marketplace shopping center. Anekona Management bought the property in 2003 and did a total facelift of the property. The developers then sold the units in 2004 and 2005.
One investor purchased 10 of these units oceanfront and that investor is now selling the condotel units in fractions, or two-month segments for around 70,000 per two month segment. That is FEE SIMPLE ownership on Kauai, on the ocean, for two months for 70K. Since the units, hotel rooms basically, are in the Visitor Destination Area, an owner can choose to rent them him/her self when they are off island or put the unit in the Resortquest Hawaii pool. ResortQuest currently manages 90% of the units in the condo complex.
Fractional ownership is coming of age in the islands. Island Fractional Homes is a nice site by a developer who has taken the time and spent the money to help educate the buying public with regards to the benefits and the nature of fractional ownership.
If you need any materials about fractional ownership or have any questions, I would be more than delighted to answer them or get you answers that i might not know.
Kauai Condotels finally under 100K
6 comments • Ronnie Margolis, Kauai Realtor®, CDPE, ABR, RA - On Top of the Aloha Beat • July 29 2008 01:13AMComments
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You're right -- Randall Harris at Island Fractional Homes is top-notch when it comes to fractionals. How is the overall vacation home market in Hawaii faring?
The vacation home market is holding its own. Though many sellers can afford to weather the down market, some distressed sellers are accelerating the price reductions in some projects. The fractional market has not really adjusted price wise in any way that i can tell, but fractionals are still a new,emerging product that many buyers do not understand.
Randall is doing a good service by producing professional collateral and taking a professional approach to the development and execution of a fractional property. Most of the developers do not make the effort nor provide the supporting collateral for marketing like Randall has done.
Nice pictures! I like the concept of fractional ownership.
Georgina, have you had any successful fractional developers on Maui? What types of projects have they done? What is your sense of buyer's understanding and acceptance of this concept to "lifestyle ownership", i.e., own the portion you are going to use.
Ronnie - I don't think there are any developments where it was incorporated into the plan from the beginning... except perhaps on the West side. I believe there are a few that are doing some units retroactively. I think Kauai is way ahead of us in this respect. Buyers like the concept, and rightly so.
The concept is viable especially at our market prices. As any new product, it takes a bunch of customer education in the beginning.