Bank forecloses on Anderson’s Kauai hotel
Ilikai hotel developer Brian Anderson is embroiled in another lawsuit after
Wells Fargo Bank N.A. foreclosed on the ResortQuest Aloha Beach Hotel Kauai, a property controlled by one of his companies.
The lawsuit, filed in state Circuit Court on Friday against Anderson, Anekona Aloha Ownership LLC and Anekona Management LLC, claims that he defaulted on a nearly $13.7 million loan secured in April 2006 from American Property Financing Inc.
The loan, since acquired by Wells Fargo, was used to purchase the 216-room hotel in Kapaa on Kuhio Highway, which is managed by ResortQuest Hawaii. The note was due in full on May 9, according to court documents.
The suit is among a number of complaints against Anderson in recent years, including a $72.6 million foreclosure on the Ilikai filed last month by New York-based iStar FM Loans LLC. Anderson declined comment yesterday. His attorney, Gary Dubin, wouldn't comment since Anderson has yet to be served, but said he will be filing a response next week.
The Big Island developer last week won a federal court case when U.S. District Judge David Ezra dismissed a lawsuit alleging that he mishandled investors' money in his attempt to redevelop the landmark Waikiki property.
Meanwhile, condominium sales are moving forward at the iconic Ilikai hotel despite the foreclosure action and Anderson expects to put up a good fight against the latest legal battle, according to his attorney.
"My client has very good defenses," Dubin said.