Developer files for bankruptcy again


POSTED: Wednesday, July 01, 2009

Big Island developer Brian Anderson has filed for bankruptcy again—this time for Anekona LLC, which defaulted on a mortgage for the Coconut Grove Marketplace on the Big Island.

In March, Florida-based LNR Partners Inc. filed a foreclosure suit against Anderson and Anekona LLC for defaulting on a $17.2 million loan for the Coconut Grove property.

This latest Chapter 11 filing on Friday comes just about a month after another bankruptcy filing by Anderson's Anekona W LLC for his Lotus at Diamond Head hotel on the Gold Coast of Waikiki.

For the 50-room Lotus property, Anderson owes 100 to 200 creditors between $10 million and $50 million, with assets listed at the same amount.

For the Coconut Grove property, Anderson owes fewer than 50 creditors between $10 million and $50 million, with assets listed at the same amount.

Coconut Grove Marketplace is an oceanfront retail center in Kailua-Kona offering boutiques, shops, restaurants and a beach volleyball court. Anchor tenants include Outback Steakhouse and Oceans Sports Bar.

Several street retail spaces are listed for lease for $3 to $4.25 per square foot per month.

Among the creditors listed for the Coconut Grove Marketplace are Wachovia Securities, which is owed $229,781; the state Department of Taxation, which is owed $101,378; and the Hawaii County Wastewater Division, which is owed $50,946.

Anderson's two other properties—the Ilikai in Waikiki and Kauai Beach Resort—recently went back to its lender iStar after going through the foreclosure-auction process.