Anderson’s Kauai Beach Condos at Auction
Mark Bratton asked:
A portion of the Hilton Kauai Beach Resort owned by developer Brian Anderson will be sold at
public auction next month.
The 145 condominium hotel units and 15 commercial condominium units will be sold in bulk at
the May 6 auction at the entrance to 5th Circuit Court in Lihue, according to an advertisement
placed by commissioner George Van Buren.
The New York lender, iStar Financial, filed for foreclosure on the property on July 22, 2008,
claiming Anderson and his KB Resort LLC were in default of nearly $29.5 million in unpaid
principal, interest, late charges and fees.
The amount was what remained from an original loan of $85.75 million — $75.75 million
borrowed from subprime lender Fremont Investment & Loan on Dec. 7, 2005, and $10 million
advanced in July 2006, according to the complaint. In June 2007, iStar took over the loans after
it acquired Fremont’s commercial real estate lending business.
The lender also foreclosed on the mortgage on the Ilikai in Waikiki, where Anderson purchased
343 units in July 2006. iStar claims Anderson and two of his companies defaulted on nearly
$75.6 million for the residential and retail units they own at the 30-story building.
The 203 residential units Anderson still owns, plus 16 commercial condo units, will be sold in
two separate public auctions next week. Those auctions are scheduled for April 15 at the 1st
Circuit Court building in Honolulu.
Anderson’s KB Resort LLC, had purchased the Kauai Beach Resort, which is located on 12 acres
just north of Lihue, in December 2004 for $62 million. In the fall of 2005, he announced plans to
turn the 350-room property into fee-simple condominiums and began a $15 million renovation.
The hotel, formerly under the Radisson flag, became a Hilton in October 2006.
KB Resort sold off 205 units. Anderson had said last year that the 145 units now up for auction
had been in escrow to an unnamed single buyer.
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A portion of the Hilton Kauai Beach Resort owned by developer Brian Anderson will be sold at
public auction next month.
The 145 condominium hotel units and 15 commercial condominium units will be sold in bulk at
the May 6 auction at the entrance to 5th Circuit Court in Lihue, according to an advertisement
placed by commissioner George Van Buren.
The New York lender, iStar Financial, filed for foreclosure on the property on July 22, 2008,
claiming Anderson and his KB Resort LLC were in default of nearly $29.5 million in unpaid
principal, interest, late charges and fees.
The amount was what remained from an original loan of $85.75 million — $75.75 million
borrowed from subprime lender Fremont Investment & Loan on Dec. 7, 2005, and $10 million
advanced in July 2006, according to the complaint. In June 2007, iStar took over the loans after
it acquired Fremont’s commercial real estate lending business.
The lender also foreclosed on the mortgage on the Ilikai in Waikiki, where Anderson purchased
343 units in July 2006. iStar claims Anderson and two of his companies defaulted on nearly
$75.6 million for the residential and retail units they own at the 30-story building.
The 203 residential units Anderson still owns, plus 16 commercial condo units, will be sold in
two separate public auctions next week. Those auctions are scheduled for April 15 at the 1st
Circuit Court building in Honolulu.
Anderson’s KB Resort LLC, had purchased the Kauai Beach Resort, which is located on 12 acres
just north of Lihue, in December 2004 for $62 million. In the fall of 2005, he announced plans to
turn the 350-room property into fee-simple condominiums and began a $15 million renovation.
The hotel, formerly under the Radisson flag, became a Hilton in October 2006.
KB Resort sold off 205 units. Anderson had said last year that the 145 units now up for auction
had been in escrow to an unnamed single buyer.