Quantcast
StarBulletin.com

Some Ilikai units will be auctioned April 15


By

POSTED: Thursday, March 26, 2009

The auction date for the iconic Ilikai Hotel in Waikiki has been set for noon on April 15 at the Circuit Court building in Honolulu.

Honolulu attorney George Van Buren, the newly appointed commissioner and receiver for the Ilikai, said it will be an open auction, with no minimum bid price.

“;There has been a lot of interest,”; Van Buren said. “;Whether people will bid or not, we'll just have to wait and see.”;

The Ilikai went into receivership in October after developer Brian Anderson and his companies were unable to pay back lenders who were funding redevelopment plans for the landmark property.

New York-based lender iStar FM Loans LLC filed a $75 million foreclosure suit against Anderson in August.

The first auction will offer 203 residential condo units in bulk. Another 16 commercial units, which include restaurants, offices, retail space, parking and the ballrooms, will be offered separately.

Buyers must bring at least 10 percent of the bid price to participate.

Unite Here Local 5 members, meanwhile, are scheduled to stage a public demonstration this afternoon in front of the Ilikai.

“;We just want to make sure that the workers and the union will be part of the Ilikai's future,”; said Local 5 spokesman Cade Watanabe. “;We want to make sure any potential new owner and operator knows that the Ilikai has a good work force, that the property should remain union and a quality source of employment.”;

Approximately 150 union employees currently work at the Ilikai, said Watanabe.

Anderson's Anekona LLC bought 343 units and the Ilikai's common areas in July 2006 for $218 million, with ambitious plans to reposition the property into an upscale condominium hotel.

But Anderson's dreams came crumbling down when unit sales failed to materialize, resulting instead in battles with homeowners and mounting debt as the economy took a severe turn for the worse.