Special Offers :: Poipu, Kauai - Residential Estate Offering

Poipu Beach Estates - Koloa - Kauai, Hawaii

Executive Summary

A partnership interest is being offered in a brand new, approximately 2,200 SF custom estate residence, located in Poipu Beach Estates, Koloa, Kauai, Hawaii. The property is approximately 3,000 feet from the ocean; just a short 10 minute walk to the Sheraton Kauai Resort. This property is located adjacent to the new Kiahuna Golf Course to the East and the proposed Kukuiula development to the West, the most expensive development in the Hawaiian Islands; home prices in this development are $8-$10mm.

Located on the sunny dry side of Kauai, in the heart of the Poipu resort area, the property is minutes from the best beaches, golfing, dining and shopping. Annual rainfall is only 16 inches; the average temperature is 78 degrees and varies just six degrees from winter to summer.

Why Poipu Beach Estates, Koloa, Kauai, Hawaii?

Kauai has seen a 25% increase in vacation rentals in the 4th quarter of 07 and the 1st quarter of 08 than any other Hawaiian island. Poipu is in the heart of that growth and development. In fact Poipu has the two largest developments currently underway in the whole state. Kukuiula http://www.kukuiula.com/ is the largest most expensive Commercial / Residential development ever done on the Islands. A 1000 acre development with 3 world class golf courses, the lots begin at 2 million with estate homes valued at 8-10 million. Our estate home in Poipu Beach Estates is directly across the street!

Unique Opportunity

As a certified master builder I have been building resort homes since 2000. I have a crew that works directly for me on an hourly rate basis. I believe, based on preliminary information, that I can build this estate home for less than the cost of what is currently being offered in Kauai. The intent is that I can build a nice product for a very reasonable value. In return, I will maintain a 1/6 interest in the property.

Ownership Interest

I am looking for up to five qualified partners to buy into the property for an estimated $240,000. The property will have an open floor plan design to take advantage of indoor/outdoor living in this beautiful Hawaiian setting. The residence will include granite counters, built-in custom bookshelves, upgraded millwork throughout, hardwood floors/tile floors, 3 master suites each with their own bathrooms, Kitchen with stainless steel appliances, a media/entertainment room, gathering area and two car garage; all fully furnished with well appointed furnishing and will include a vehicle.

Time on the Island

Each owner will get the benefit of two months of time at the estate home. The two months will be determined by all members but initial thoughts are that the structure would look similar to two offsetting months. Example: one owners months would be January and July the first year and then rotate to February and August the second year etc. to provide every owner an equal opportunity for prime vacation and rental times. Also, special occasions like birthdays and anniversaries can be reserved. Most likely, the estate home will be available for all owners on a first come, first served basis beyond the regular lottery timeframe allotted.

Financing

It is my intention that the partners would pay cash for their interest in the property. But if it was necessary to provide financing we can discuss this among the partners.

Rental Income

I anticipated that there will be regular income to offset all expenses and this property may produce a small amount of cash flow. I’ve discussed the rental market in great detail with Jim Pycha, a local property manager/real estate broker, and put together a pro-forma income statement attached as Exhibit F based on the information provided by Jim.

Construction Timeline

I plan to start working on this project April 1, 2008 as long as partnership interest is strong. I believe that I can deliver a finished estate home by mid-November, 2008. Here is the preliminary timeline that I believe can be achieved.

1. Secure Lot April 15, 2008
2. Finalize Architectural Plan June 1, 2008
3. Pull Building Permits July 1, 2008
4. Start Construction July 5, 2008
5. End Construction November 1, 2008
6. Certificate of Occupancy November 5, 2008
7. Furnish/Move-in November 20, 2008

Exhibit A
Properties Available for Sale & Recently Sold Properties

Exhibit B
Construction Cost Estimate

Exhibit C
Architectural Design
[under development]

Exhibit D
1. Poipu Beach Estates Plat Map
2. Poipu Beach Estate Locator Map
3. Poipu Beach Estates Aerial Map
4. Poipu Beach Estates Lot Inventory
5. Poipu Beach Estates Design Guidelines

Exhibit E
Rental Income Pro-Forma